4.1 introduction 4.2 private banking in india 4.3 profile...
TRANSCRIPT
4.1 INTRODUCTION
4.2 PRIVATE BANKING IN INDIA
4.3 PROFILE OF SELECTED PRIVATE SECTOR BANKS COVERED
UNDER STUDY
4.3.1 Axis Bank Ltd.
4.3.2 HDFC Bank Ltd.
4.3.3 ICICI Bank Ltd.
4.3.4 IndusInd Bank Ltd.
4.3.5 Bank of Rajasthan Ltd.
4.3.6 Dhanlakshmi Bank Ltd.
4.3.7 ING Vysya Bank Ltd.
4.3.8 Karur Vysya Bank Ltd.
REFERENCES
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44..11 IINNTTRROODDUUCCTTIIOONN
“Banking business is a financial science on Money,
SAVE TO EARN AND OWE TO PAY,
Thus, bank puts exotic schemes to raise money and parcel debt”.
Banks are institutions where miracles happen regularly. We rarely entrust
our money to anyone but ourselves – and our banks. Despite a very
chequered history of mismanagement, corruption, false promises and
representations, delusions and behavioural inconsistency – banks still
succeed to motivate us to give them our money. Partly it is the feeling that
there is safety in numbers. The fashionable term today is "moral hazard".
The implicit guarantees of the state and of other financial institutions
move us to take risks which we would, otherwise, have avoided. Partly it
is the sophistication of the banks in marketing and promoting themselves
and their products. Glossy brochures, professional computer and video
presentations and vast, shrine-like, real estate complexes all serve to
enhance the image of the banks as the temples of the new religion of
money. But what is behind all this? How can we judge the soundness of
our banks? In other words, how can we tell if our money is safely tucked
away in a safe heaven?
The judgment can be made from the financial position and especially from
the profits of the banks. The importance of profits to commercial banks is
hard to exaggerate. They are decisive factor for the continued existence of
a bank and its success as a going concern.
44..22 PPRRIIVVAATTEE BBAANNKKIINNGG IINN IINNDDIIAA
Barron‟s Dictionary of Banking Terms provides an excellent definition. It
defines private banking as banking services, including lending and
investment management, for wealthy individuals. Private banking
primarily is a credit service, and is less dependent on accepting deposits
than retail banking. Under this definition, private banking includes,
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among other things, personalised services such as money management,
financial advice and investment services for high-net-worth clients.
Private banking services almost always involve a high level of
confidentiality for client information. Lending to high-net-worth
individuals and their business concerns often takes on unique
characteristics. Most private banking lending is fully secured.
Nevertheless, extensions of credit to wealthy individuals, even if secured,
should not compromise sound underwriting standards.
Private Banking Services
Figure 4.1
Private Banks in India started way back and has a history due to the fact
that in the past years they were originally working in private during those
days they were supposed to handle the more able and Indians with their
banking services and other banking needs that they would require all this
activities happened around 1921.
Since ancient times, private banking activities in the form of money
lending have been prevalent and it is the foundation for the present
sophisticated system in India. But the growth of the banking system was
quite muted on account of a series of crisis and lack of coordinated
BANKING SERVICES
INVESTMENT MANAGEMENT
SERVICES
WEALTH STRUCTURING
SERVICES
CLIENT
PERSONAL CLIENT ADVISOR
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banking policy and inadequate control by proper authorities. In the
second half of the 20th century, especially after obtaining independence,
the Indian banking system experienced a rapid rate of growth and
recorded a fast progress. To speed up the growth further and also to meet
out the national objectives and plans, the government initiated the
nationalization process. Accordingly, the State Bank of India and its
Associates in 1955, 14 major banks in 1969 and 6 other banks in 1980 were
nationalised to take up their business in line with national plans and
priorities. Certain other banks which were not under the criteria of
nationalization operated mostly in South India and are regarded as old
private sector banks. Such banks are 19 in number at the March end of
2009, and most of them are very old. After the turning point of the
millennium year, the private banks in India have a major role when it
comes to serving the Indian people with their savings since they made the
banking services more efficient and customer friendly, in that many
Indians now are safe to keep their savings without any doubt and on top
of that they have make other bank to be in a stiff competition.
The present banking system experienced a radical transformation on
account of the globalization process. The phenomenon of globalization
brought about significant changes in terms of products and services that
are being offered to the Indian customer and consequently, the
complexion of the banking sector in India underwent a noteworthy
change. On the basis of the recommendations of the Narasimham
committee, a high level committee was appointed to examine the
structure, organisations, functions and procedures of the financial system.
In July 1991, the RBI decided to give a go-ahead for setting up of new
banks in the private sector by the individuals, corporations, foreign and
non-residents, subject to the regulations and other requirements.
RBI laid down the conditions for setting up of new private sector banks.
Such banks must subserve the underlying goals of financial sector reforms
which are to provide competitive, efficient and low cost financial
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intermediation services for the society at large. They should be financially
viable. Their presence should result in upgradation of technology in the
banking sector. They should be equipped to avoid the shortcomings such
as unfair pre-emption and concentration of credit, monopolisation of
economic power, cross holdings with industrial groups, etc. with beset the
private sector banks prior to nationalization. Freedom of entry in the
banking sector may have to be managed carefully and judiciously.
RBI laid down detailed guidelines of establishment of new banks in the
private sector. In line with this announcement, the RBI received 19
applications which fulfilled all the formalities. Presently, at the end of
2009, there are 8 (eight) popularly known as the “New Private Sector
Banks”. The banks use latest technology to provide customer oriented
services. They give stiff competition to the public sector and foreign banks.
44..33 PPRROOFFIILLEE OOFF SSEELLEECCTTEEDD PPRRIIVVAATTEE SSEECCTTOORR BBAANNKKSS
CCOOVVEERREEDD UUNNDDEERR TTHHEE SSTTUUDDYY
Initially all the banks in India were private banks, which were founded in
the pre-independence era to cater to the banking needs of the people. The
old private sector banks constitute an important part of the private sector
banks. The key strength of these banks lies in:
(i) Their strong regional presence, contributing to better knowledge of
the economic activities in the region and, hence, the attendant
mitigation of credit risk.
(ii) Their ability to offer personalized services to customers arising out
of their comparative smaller size and scale of operations.
(iii) Better management control over their operations.
But the entrance of the new private sector banks has weakened the
competitive strength of the old private sector banks. They also have to face
competition from foreign banks, and a few rejuvenated public sector
banks. In the total assets of Rs. 10,27,465 crores of the private sector banks,
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the old private sector banks constituted a share of Rs. 2,32,001 crores
(22.58%) during 2008-09. The number of old private sector banks as on 31st
March, 2009, after the last amalgamation of Lord Krishna Bank Ltd. with
the Centurion Bank of Punjab Ltd. effective from August 29, 2007, comes
to fifteen (15). Among these 15 banks, the following four banks are taken
for the research study:
(i) Bank of Rajasthan Ltd.
(ii) Dhanlakshmi Bank Ltd.
(iii) ING Vysya Bank Ltd.
(iv) Karur Vysya Bank Ltd.
The new private sector banks have been established on the basis of the
recommendations of the Narasimham Committee Report that “there be no
barriers to new banks being setup in the private sector”. In recognition of
the need to introduce competition with a view to achieving higher
productivity and efficiency, the banking system was liberalized during the
early 1990s. Accordingly, the RBI issued a set of guidelines in January
1993 for the entry of new private sector banks. The New Generation tech-
savvy banks have made banking more efficient and customer friendly. In
the process they have jolted public sector banks out of complacency and
forced them to become more competitive.
In the total assets of Rs. 10,27,465 crores of the private sector banks, new
generation private sector banks constituted a share of Rs. 7,95,464 crores
(77.72%) during 2008-09. As at the end of March, 2009 the number of new
private sector banks is eight (8), after the amalgamation of Centurion Bank
of Punjab Ltd. with HDFC Bank Ltd. effective from May 23, 2008, from
which the following four banks are taken for the research study:
(i) Axis Bank Ltd.
(ii) HDFC Bank Ltd.
(iii) ICICI Bank Ltd.
(iv) IndusInd Bank Ltd.
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44..33..11 AAXXIISS BBAANNKK LLTTDD..
INTRODUCTION
Axis Bank Ltd., previously called UTI Bank, was the first of the new
generation private banks to have begun operations in 1994, when the
overall reform programme was initiated by the Government of India in
1991 and opened the gate for the private banks to flock into the Indian
financial market. The Bank was promoted jointly by the Administrator of
the Specified Undertaking of the Unit Trust of India (UTI-I) – the largest
mutual fund in India holding 87% of the equity; and 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 Insurance Company Ltd held
the balance 13%. Axis Bank is one of the fastest growing banks in the
country and has an extremely competitive and profitable banking
franchise. The Bank has strengths in both retail and corporate banking and
is committed to adopting the best industry practices internationally in
order to achieve excellence.
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Change of Name from UTI Bank to Axis Bank
The name of UTI was changed because of the disagreement on terms and
conditions of the bank authority over certain stipulations including
royalty charged over the name from UTI AMC. The bank also wanted to
have a new name from its pan-Indian as well as international business
perspective. So from July 30, 2007 onwards the UTI bank was named as
Axis Bank. First branch of Axis Bank, then known as UTI Bank, was
inaugurated at Ahmedabad by Dr. Manmohan Singh, the then Finance
Minister, Government of India.
CORPORATE PROFILE
Date of Incorporation : 1994
Registered Office : „Trishul‟, 3rd Floor,
Opp. Samartheshwar Temple,
Law Garden, Ellisbridge,
Ahmedabad – 380 006.
Tel.No.: 079 - 26409322
Public Issue Date : November 16, 1998
BSE Code : 532215
NSE Code : AXISBANK
Board of Directors : Shri P. J. Nayak, Chairman & CEO
(As on March 31, 2009) Shri N. C. Singhal, Director
Shri A. T. Pannir Selvam, Director
Shri J. R. Varma, Director
Shri R. H. Patil, Director
Shri Rama Bijapurkar, Director
Shri R. B. L. Vaish, Director
Shri M. V. Subbiah, Director
Shri Ramesh Ramanathan, Director
Shri K. N. Prithviraj, Director
Web URL : http://www.axisbank.com
Logo :
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AXIS BANK LTD. AT A GLANCE AS ON MARCH 31, 2009
Financial Results
(Rs. in crores)
Total Assets / Liabilities : 1,47,722.05
Total Deposits : 1,17,374.11
Total Advances : 81,556.77
Total Investments : 46,330.35
Cash and Balances with RBI : 9,419.21
Fixed Assets : 1,072.89
Interest Income : 10,835.49
Non-Interest Income : 2,896.88
Net Interest Income : 3,686.21
Interest Expenses : 7,149.27
Operating Expenses : 2,858.21
Provisions and contingencies : 1,909.51
Net Profit : 1,815.36
Operating Profit : 3,724.87
Priority Sector Advances : 22,949.04
Gross Non-Performing Assets : 897.77
Net Non-Performing Assets : 327.13
Other Information
Number of Offices : 835
Number of ATMs : 3,595
Number of Employees : 20,624
Business Per Employee (Rs. in lakh) : 1,060
Profit Per Employee (Rs. in lakh) : 10.02
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44..33..22 HHDDFFCC BBAANNKK LLTTDD..
INTRODUCTION
The HDFC Bank was incorporated on August 1994 by the name of “HDFC
Bank Limited”, with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January 1995.
The Housing Development Finance Corporation (HDFC) was amongst the
first to receive an 'in principle' approval from the Reserve Bank of India
(RBI) to set up a bank in the private sector, as part of the RBI's
liberalization of the Indian Banking Industry in 1994.
The promoter of the company HDFC was incepted in 1977 is India's
premier housing finance company and enjoys an impeccable track record
in India as well as in international markets. HDFC has developed
significant expertise in retail mortgage loans to different market segments
and also has a large corporate client base for its housing related credit
facilities. With its experience in the financial markets, a strong market
reputation, large shareholder base and unique consumer franchise, HDFC
was ideally positioned to promote a bank in the Indian environment.
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HDFC Bank's mission is to be a World-Class Indian Bank. The objective is
to build sound customer franchises across distinct businesses so as to be
the preferred provider of banking services for target retail and wholesale
customer segments, and to achieve healthy growth in profitability,
consistent with the bank's risk appetite.
The shares are listed on the Bombay Stock Exchange Limited and National
Stock Exchange of India Limited. The Bank's American Depository Shares
(ADS) are listed on the New York Stock Exchange (NYSE) under the
symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are listed
on Luxembourg Stock Exchange.
Merger and Amalgamation
In a milestone transaction in the Indian banking industry, Times Bank
Limited (a private sector bank promoted by Bennett, Coleman &
Co./Times Group) was merged with HDFC Bank Ltd., effective February
26, 2000. With this, HDFC and Times became the first two private banks in
the New Generation Private Sector Banks to have gone through a merger.
As per the scheme of amalgamation approved by the shareholders of both
banks and the Reserve Bank of India, shareholders of Times Bank received
1 share of HDFC Bank for every 5.75 shares of Times Bank.
During the year ended March 31, 2009, the RBI accorded its consent to the
Scheme of Amalgamation of Centurion Bank of Punjab (CBP) with HDFC
Bank. Pursuant to the order of amalgamation the operations of both Banks
were merged with effect from May 23, 2008. The appointed date for the
merger was April 01, 2008. As per the scheme of amalgamation,
shareholders of CBP received 1 share of HDFC Bank for every 29 shares of
CBP. The merged entity now holds a strong deposit base of around Rs.
1,22,000 crore and net advances of around Rs. 89,000 crore. The balance
sheet size of the combined entity would be over Rs. 1,63,000 crore. The
amalgamation added significant value to HDFC Bank in terms of
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increased branch network, geographic reach, and customer base, and a
bigger pool of skilled manpower.
CORPORATE PROFILE
Date of Incorporation : 1994
Registered Office : HDFC Bank House,
Senapati Bapat Marg,
Lower Parel,
Mumbai – 400 013.
Tel.No.: 022 - 66521000
Public Issue Date : December 31, 1995
BSE Code : 500180
NSE Code : HDFCBANK
Board of Directors : Shri Jagdish Capoor, Chairman
(As on March 31, 2009) Shri Keki Mistry, Director
Smt. Renu Karnad, Director
Shri Arvind Pande, Director
Shri Ashim Samanta, Director
Shri Chander Mohan Vasudev, Director
Shri Gautam Divan, Director
Dr. Pandit Palande, Director
Shri Aditya Puri, Managing Director
Shri Harish Engineer, Executive Director
Shri Paresh Sukthankar, Executive Director
Shri Vineet Jain, Director (upto 27.12.2008)
Web URL : http://www.hdfcbank.com
Logo :
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HDFC BANK LTD. AT A GLANCE AS ON MARCH 31, 2009
Financial Results
(Rs. in crores)
Total Assets / Liabilities : 1,83,270.77
Total Deposits : 1,42,811.58
Total Advances : 98,883.05
Total Investments : 58,817.55
Cash and Balances with RBI : 13,527.21
Fixed Assets : 1,706.73
Interest Income : 16,332.26
Non-Interest Income : 3,290.61
Net Interest Income : 7,421.16
Interest Expenses : 8,911.10
Operating Expenses : 5,532.81
Provisions and contingencies : 2,934.02
Net Profit : 2,244.94
Operating Profit : 5,178.96
Priority Sector Advances : 29,781.60
Gross Non-Performing Assets : 1,988.07
Net Non-Performing Assets : 627.62
Other Information
Number of Offices : 1,412
Number of ATMs : 3,295
Number of Employees : 52,687
Business Per Employee (Rs. in lakh) : 446.00
Profit Per Employee (Rs. in lakh) : 4.18
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44..33..33 IICCIICCII BBAANNKK LLTTDD..
INTRODUCTION
Established as a private sector
company in 1955, ICICI Ltd., was a
leading Development Bank in
India. There after, ICICI Bank was
started as a wholly owned
subsidiary of ICICI Limited, an
Indian financial institution, in
1994. Four years later, when the
company offered ICICI Bank's
shares to the public, ICICI's
shareholding was reduced to 46%.
ICICI Bank, undertook normal
banking operations like accepting deposits, issuing credit cards, providing
car loans etc. A landmark event took place when ICICI merged into ICICI
Bank and this "reverse merger" happened on March 30, 2002. The merger
110
created India‟s first universal bank and the second largest bank in the
country wit total assets of about Rs.1 trillion and about 540 branches and
offices and over 1,000 ATMs.
ICICI Bank offer a wide gamut of retail products to its retail customers
and as well as other banking products related to the corporate segment.
Bank also offer financial services that span asset management, venture
capital, investment banking, life and non-life insurance. ICICI Bank‟s
equity shares are listed in India on stock exchanges at Chennai, Delhi,
Kolkata, Mumbai, Vadodara and the National Stock Exchange (NSE) of
India Limited with its American Depositary Receipts (ADRs) listed on the
New York Stock Exchange (NYSE).
Merger of ICICI with ICICI Bank
ICICI and ICICI Bank, along with other ICICI group companies, were
operating as a virtual universal bank offering a wide range of financial
products and services. In the context of the move towards universal
banking and the stiff competition scenario in the Indian banking industry,
both the entities were merged. The merged entity has now an access to
low-cost deposits, higher income and participation in the payments
system, entry into new business segments, higher market share in various
segments especially fee-based services and vast talent pool of ICICI and its
subsidiaries which, in turn, would enhance the value for ICICI Bank
shareholders. The merger has resulted in the integration of the retail
finance operations of ICICI and its two merging subsidiaries and ICICI
Bank into one entity, creating an optimal structure for the retail business.
The share exchange ratio approved for the merger was one fully paid-up
equity share of ICICI Bank for two fully-paid-up equity shares of ICICI.
The merger was approved by the shareholders of both companies in
January 2002, by the High Court of Gujarat in March 2002, and by the
High Court of Judicature at Mumbai and the RBI in April 2002. ICICI
could successfully meet the statutory reserve requirements applicable to
banks within the target date of 30 March 2002. While the merger became
111
effective on 3 May 2002, in accordance with the provision of the Scheme of
Amalgamation and the terms of approval of the RBI, the appointed date
for the merger was 30 March, 2002.
CORPORATE PROFILE
Date of Incorporation : January 5, 1994
Registered Office : Landmark,
Race Cource Circle,
Vadodara – 390 007.
Tel.No.: 2339923
Public Issue Date : August 5, 1997
BSE Code : 532174
NSE Code : ICICIBANK
Board of Directors : Shri N. Vaghul, Chairman
(As on March 31, 2009) (Upto April 30, 2009)
Shri K. V. Kamath, Managing Director &
CFO
(Upto April 30, 2009)
Chairman - w.e.f. May 1, 2009
Shri Sridar Iyengar, Director
Shri L. N. Mittal, Director
Shri Narendra Murkumbi, Director
Shri Anupam Puri, Director
Shri M. K. Sharma, Director
Shri P. M. Sinha, Director
Shri Marti G. Subrahmanyam, Director
Shri T. S. Vijayan, Director
Shri V. Prem Wasta, Director
Ms. Chanda D. Kochhar, Joint MD & CFO
(upto April 30, 2009)
MD & CFO - w.e.f May 1,
2009
Shri V. Vaidyanathan, Executive Director
(upto April 30, 2009)
Shri Sonjoy Chatterjee, Executive Director
Web URL : http://www.icicibank.com
Logo :
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ICICI BANK LTD. AT A GLANCE AS ON MARCH 31, 2009
Financial Results
(Rs. in crores)
Total Assets / Liabilities : 3,79,300.96
Total Deposits : 2,18,347.82
Total Advances : 2,18,310.85
Total Investments : 1,03,058.31
Cash and Balances with RBI : 17,536.33
Fixed Assets : 3801.62
Interest Income : 31,092.55
Non-Interest Income : 7,603.73
Net Interest Income : 8,366.62
Interest Expenses : 22,725.93
Operating Expenses : 7,045.11
Provisions and contingencies : 5,167.09
Net Profit : 3,758.13
Operating Profit : 8,925.22
Priority Sector Advances : 62,051.60
Gross Non-Performing Assets : 9,649.31
Net Non-Performing Assets : 4,553.94
Other Information
Number of Offices : 1,409
Number of ATMs : 4,713
Number of Employees : 34,596
Business Per Employee (Rs. in lakh) : 1,154.00
Profit Per Employee (Rs. in lakh) : 11.00
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44..33..44 IINNDDUUSSIINNDD BBAANNKK LLTTDD..
INTRODUCTION
IndusInd Bank is the new generation Indian bank based at Mumbai - the
financial capital of the nation. IndusInd Bank derives its name and
inspiration from the Indus Valley civilisation - a culture described by
National Geographic as 'one of the greatest of the ancient world
combining a spirit of innovation with sound business and trade practices.
The idea behind IndusInd Bank, was conceived by Mr. Srichand P.
Hinduja, a leading Non-Resident Indian (NRI) businessman and the head
of the Hinduja Group. One of the first new-generation private banks in
India, IndusInd Bank was inaugurated in April 1994, Dr. Manmohan
Singh, the present Prime Minister of India, who was then the Finance
Minister of the country. It was established with the help of collective
contributions from the NRI community, towards the economic and social
development of India. The operations of IndusInd Bank were started with
a capital base of Rs.1,000 million. Of the total 1,000 million, Rs.600 million
was raised through private placements by Indian Residents and Rs.400
million was contributed by Non-Resident Indians (NRIs). A decade after
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its establishment i.e. in June 2004, IndusInd Bank was merged with Ashok
Leyland Finance Ltd., which was one of the largest leasing finance and
hire purchase companies in India, at that time. With this, the bank
increased its customer base and geographical penetration. The bank is also
credited for being one of the first banks to become a part of RBI‟s Real
Time Gross Settlement (RTGS) system. In 1996-97, the bank became the
pioneer in launching Internet Banking. With its roots in Indian tradition
and emphasis on customer care, IndusInd Bank‟s service philosophy is
well reflected in the communication tagline “We Care... Dil Se”.
CORPORATE PROFILE
Date of Incorporation : April 2, 1994
Registered Office : 2401, General Thimmayya Road,
(Cantonment),
Pune – 411 001.
Tel.No.: 26343201
Public Issue Date : November 25, 1997
BSE Code : 532187
NSE Code : INDUSINDBK
Board of Directors : Shri R. Seshasayee, Chairman
(As on March 31, 2009) Shri R. Sundararaman, Director
Shri T. Anantha Narayanan, Director
Shri T. T. Ram Mohan, Director
Smt. Pallavi Shroff, Director
Shri Premchand Godha, Director
Shri Ajay Hinduja, Director
Shri S. C. Tripathi, Director
Shri Ashok Kini, Director
Shri Romesh Sobti, MD & CEO
Web URL : http://www.indusind.com
Logo :
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INDUSIND BANK LTD. AT A GLANCE AS ON MARCH 31, 2009
Financial Results
(Rs. in crores)
Total Assets / Liabilities : 27,614.68
Total Deposits : 22,110.25
Total Advances : 15,770.64
Total Investments : 8,083.41
Cash and Balances with RBI : 1,190.79
Fixed Assets : 623.19
Interest Income : 2,309.47
Non-Interest Income : 456.25
Net Interest Income : 459.03
Interest Expenses : 1,850.44
Operating Expenses : 547.03
Provisions and contingencies : 219.91
Net Profit : 148.34
Operating Profit : 412.42
Priority Sector Advances : 5,565.79
Gross Non-Performing Assets : 255.02
Net Non-Performing Assets : 179.13
Other Information
Number of Offices : 180
Number of ATMs : 184
Number of Employees : 4,251
Business Per Employee (Rs. in lakh) : 836.00
Profit Per Employee (Rs. in lakh) : 3.49
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44..33..55 BBAANNKK OOFF RRAAJJAASSTTHHAANN LLTTDD..
INTRODUCTION
The Bank of Rajasthan was established at Udaipur, the city of lakes in
Rajasthan on the auspicious day of Akshya Tritiya on May 8, 1943. The
credit for the birth of the Bank goes to, the then finance minister of the
erst-while Mewar Government, late Shri Rai Bahadur P.C. Chatterji,
who persuaded the Mansingka brothers of Bhilwara for establishing a
joint stock bank with its registered Office at Udaipur.
The bank started with a capital of only Rs.10 lakhs. Late Seth Shri Govind
Ram Seksaria, an eminent Industrialist of the country, was the founder
Chairman. The first Broad of Directors comprised such men of eminence
as Shri Rai Bahadur Seth Rameshwarlal Ji Duduwala, Seth Shri Subhhag
Mal Ji Lodha besides the Mansighka brothers, Seth Shri Pusa Lalji
Mansighka and Seth Shri Damodar Lal ji Mansighka. The other members
of the board were Major Rajadhiraj Amar Singhji of Banera and the then
Accountant General of Mewar, Rai Bahadur lala Sukhdayalji.
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In line with the contemporary practice of naming the bank after the
location or princely state, the suggested names for the bank were Bank of
Mewar State or Bank of Udaipur. The promoters, being very clear in their
vision, expressed the view that the word 'Rajasthan' will be more
advantageous in future for expanding activities in other princely states
since under the new constitution grouping of the then local princely states
was expected under one umbrella. As now is history, the individual
princely states were merged under the final name for the state - Rajasthan.
The naming of the bank, The Bank of Rajasthan Ltd., glaringly reflected
the foresight of the promoters. The logo of the bank consists of the historic
Victory Tower of Chittorgarh, (Rajasthan) the rising sun and sand-dunes
in a circular shape of coin.
It was, in 1948, that the Bank of Rajasthan became a scheduled bank. Bank
of Rajasthan was one among the first banks to take banking services, at
the door step of customers. This was done, when it opened its first mobile
branch in Jaipur on August 5, 1960, thereby initiating the concept of
mobile branches. The Bank became one of the earliest banks in private
sector sponsoring any rural (Gramin) bank, when it established the
Mewar Anchlik Gramin Bank in Udaipur District in Rajasthan on January
26, 1983. Further in 1997, the bank achieved distinction, when its Jaipur
branch qualified for ISO 9002:94 certification by Det Norske Veritas
(DNV), London. The bank started its first ATM services in the series of
Quality services to its customers at C-Scheme Jaipur branch from 1st July
1998.
The Bank has a nationwide presence, serving its customers with a mission
of “together we prosper” engaging actively in Commercial Banking,
Merchant Banking, Auxiliary services, Consumer Banking, Deposit &
Money Placement services, Trust & Custodial services, International
Banking, Priority Sector Banking, Depository. Bank of Rajasthan
specializes in forex and industrial finance, and with their motto „together
we prosper‟ the bank offers qualified services to its customers. The bank
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offers deposit schemes like sugam jama yojan, recurring saving deposit
account, fixed deposit scheme and suvidha Bachat yojana.
CORPORATE PROFILE
Date of Incorporation : May 8, 1943
Registered Office : Clock Tower,
Udaipur – 313 001.
Tel.No.: 0294 - 2525709
Public Issue Date : December 15, 1994
BSE Code : 500019
NSE Code : BANKRAJAS
Board of Directors : Shri P. L. Ahuja, Chairman & CEO
(As on March 31, 2009) Shri Sanjay Kumar Tayal, Director
Shri P. N. Bhandari, Director
Shri K. N. Bhandari, Director
Shri Magh Raj Calla, Director
Shri Ved Prakash Khurana, Director
Shri Pran M. Agarwal, Director
Shri K. G. Kurian, Director
Shri Vipul Dhirajlal Mehta, Director
Shri S. B. Mathur, Director
(Resigned w.e.f. 09.05.2009)
Dr. Dharinder Kumar Tayal, Director
Shri Salil Kapoor, Director
Shri Nitin N. Goel, Director
Shri Shekhar Bhatnagar, Additional Director
Shri A. Madhavan, Additional Director
Shri Deepak Saruparia, Dy. MD
Shri K. K. Sharma, Executive Director
Web URL : http://www.bankofrajasthan.com
Logo :
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BANK OF RAJASTHAN AT A GLANCE AS ON MARCH 31, 2009
Financial Results
(Rs. in crores)
Total Assets / Liabilities : 17,224.39
Total Deposits : 15,187.15
Total Advances : 7,780.75
Total Investments : 6,809.15
Cash and Balances with RBI : 703.45
Fixed Assets : 524.59
Interest Income : 1,383.61
Non-Interest Income : 123.62
Net Interest Income : 385.16
Interest Expenses : 998.45
Operating Expenses : 315.00
Provisions and contingencies : 76.06
Net Profit : 117.71
Operating Profit : 193.77
Priority Sector Advances : 2,032.05
Gross Non-Performing Assets : 160.92
Net Non-Performing Assets : 57.03
Other Information
Number of Offices : 463
Number of ATMs : 111
Number of Employees : 4,075
Business Per Employee (Rs. in lakh) : 532.93
Profit Per Employee (Rs. in lakh) : 2.89
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44..33..66 DDHHAANNLLAAKKSSHHMMII BBAANNKK LLTTDD..
INTRODUCTION
The foundation of Dhanalakshmi Bank Limited was laid down on 14th
November 1927, in the Thrissur district of Kerala. A group of innovative
entrepreneurs had started the bank with a capital of Rs.11,000 and only 7
employees. Fifty years later, in the year 1977, it became a 'Scheduled
Commercial Bank'. The bank‟s Corporate Office, situated at Thrissur, and
Industrial Finance Branch, located in Kochi, has been accredited with
certification under ISO 9001-2000.
Dhanalakshmi Bank is one of those financial institutions that have moved
ahead with the changing times. It has used technology widely throughout
its operations, with the aim of improving the quality of customer service.
The Centralised Banking Solution (CBS) on the Flexcube Platform, offered
by the bank in all of branches, allows its clients to reap the benefits of
Anywhere/Anytime banking, through multiple delivery channels. The
'Data Centre' of Dhanalakshmi Bank, set up in Bangalore, keeps the
networked system operational 24X7. Dhanalakshmi Bank has introduced
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tele-banking and Internet banking for its clients, at all the branches. At the
same time, it has implemented centralized CMS software, with the CMS
hub being located at the corporate office in Thrissur. Real Time Gross
Settlement (RTGS) and National Electronic Fund Transfer (NEFT)
Systems, assisting large value payments and settlements in real time on-
line mode on a transaction-by-transaction basis, are the other tech-savvy
services offered by the bank.
As part of this overall effort, the Bank has joined CASHNET, the first
independent nation-wide shared ATM network in India, the National
Financial Switch (ATM network) of the IDRBT, promoted by Reserve Bank
of India and Cash Tree promoted by a group of public sector banks. With
a view to making available value-added services to the NRIs, the Bank has
set up NRI Boutiques (Relationship Centres) at 9 locations in the State of
Kerala and Tamil Nadu.
CORPORATE PROFILE
Date of Incorporation : November 14, 1927
Registered Office : P. B. No.9, Dhanlakshmi Building,
Naickanal,
Trissur – 680 001.
Tel.No.: 0487 - 6617000
Public Issue Date : December 31, 1996
BSE Code : 532180
NSE Code : DHANBANK
Board of Directors : Shri Ghyanendra Nath Bajpai, Chairman
(As on March 31, 2009) Shri V. R. Chalasani, Director
Shri S. Santhanakrishnan, Director
Shri K. Srikanth Reddy, Director
Shri Shailesh V. Haribhakti, Director
Shri Amitabh Chaturvedi, MD & CEO
Web URL : http://www.dhanbank.com
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DHANLAKSHMI BANK AT A GLANCE AS ON MARCH 31, 2009
Financial Results
(Rs. in crores)
Total Assets / Liabilities : 5,642.82
Total Deposits : 4,968.81
Total Advances : 3,196.06
Total Investments : 1,567.36
Cash and Balances with RBI : 394.99
Fixed Assets : 46.20
Interest Income : 408.42
Non-Interest Income : 79.36
Net Interest Income : 121.63
Interest Expenses : 286.79
Operating Expenses : 113.07
Provisions and contingencies : 30.45
Net Profit : 57.45
Operating Profit : 87.90
Priority Sector Advances : 1,147.62
Gross Non-Performing Assets : 64.43
Net Non-Performing Assets : 28.24
Other Information
Number of Offices : 181
Number of ATMs : 72
Number of Employees : 1,402
Business Per Employee (Rs. in lakh) : 585.88
Profit Per Employee (Rs. in lakh) : 4.10
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44..33..77 IINNGG VVYYSSYYAA BBAANNKK LLTTDD..
INTRODUCTION
Vysya Bank Ltd, one of initial banks to be set up in the private sector of
India, was established in the year 1930, with the aim of providing a
helping hand to all those who couldn't afford the privilege of enjoying the
services of a bank. Eighteen years later, in 1948, the bank was listed as one
of the Scheduled Banks of the country. With the passing time, Vysya Bank
aimed at the number one position in all the private sector banks.
In 1985, the dream of Vysya Bank's promoters came true and it became the
largest private sector bank of India. Two years later, it laid the foundation
of Vysya Bank Leasing Ltd. The following year, the bank was credited
with laying down the innovative concept of 'Co branding of Credit Cards'.
In 1990, Vysya Bank promoted a new entity - Vysya Bank Housing
Finance Ltd. By 1992, the bank had reached another milestone, by having
its deposits cross Rs. 1000 crores and the very next year, the number of its
branches had gone past 300.
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In the year 1996, Vysya Bank struck a strategic alliance with BBL Belgium
and was also honored with two National Awards by Gem & Jewellery
Export Promotion Council, for excellent performance in Export Promotion.
Hardly two years later, the bank had introduced Cash Management
Services and the commissioning of VSAT and was also rated as the Best
Domestic Bank in India, by Global Finance (International Financial Journal
- June 1998). Soon (2000), it established a state-of-the-art Date Centre, at
ITPL, Bangalore.
It was in 2000 only that ING and Vysya Bank set up ING Vysya Life
Insurance Company, after receiving RBI nod, commencing its business in
the following year. Two years later, a wide range of services were
launched, including Vys Vyapar Plus - the range of loan schemes for
traders, ATM services, Smartserv - personal assistant service, Save &
Secure - an account that provides accident hospitalization and insurance
cover, Sambandh - the International Debit Card and the mi-b@nk net
banking service.
ING Vysya Bank Ltd., is an entity formed with the coming together of
erstwhile, Vysya Bank Ltd., a premier bank in the Indian Private Sector
and a global financial powerhouse, ING of Dutch origin, during Oct 2002.
ING took over the management of Vysya Bank and RBI gave its
permission for the new name of the bank to be 'ING Vysya Bank Ltd'. The
immediate benefit to ING Vysya Bank Ltd. is the pride of having become a
member of global financial services giant. The pride of this global identity,
the back up of a financial power house and the status of being the first
Indian International bank, has greatly enhance productivity, profitability
resulting in improved performance for the bank to translate into higher
returns, to all the stake holders.
In the constant endeavor to make life easier for customers, the Bank
upgraded its Internet Banking portal which now provides a smoother
customer experience apart from adding new features to online banking
offering. During 2009, bank launched Mobile Banking, providing a
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„virtual‟ bank to the customer where he can view and transact on his bank
accounts and get updates on branch/ATM locations.
CORPORATE PROFILE
Date of Incorporation : March 29, 1930
Registered Office : ING Vysya House, No.22,
M. G. Road,
Bangalore – 560 001.
Tel.No.: 080 – 25005000 / 25559222
Public Issue Date : May 1, 1996
BSE Code : 531807
NSE Code : INGVYSYABK
Board of Directors : Shri K. R. Ramamorthy, Chairman
(As on March 31, 2009) Shri Vaughn Nigel Richtor, MD & CEO
Shri Aditya Krishna, Director
Shri Arun Thiagarajan, Director
Shri Lars Kramer, Director
(Upto 01.05.2008)
Shri Meleveetil Damodaran, Director
Shri Philippe Damas, Director
Shri Ramakrishnan Subramanian, Director
Shri Richard Cox, Director
Shri Ryan Padgett, Director
Shri Santoch Ramesh Desai, Director
Shri Wilfred Nagel, Director
Web URL : http://www.ingvysyabank.com
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ING VYSYA BANK LTD. AT A GLANCE AS ON MARCH 31, 2009
Financial Results
(Rs. in crores)
Total Assets / Liabilities : 31,856.99
Total Deposits : 24,889.92
Total Advances : 16,750.93
Total Investments : 10,495.54
Cash and Balances with RBI : 1,791.02
Fixed Assets : 437.20
Interest Income : 2,239.89
Non-Interest Income : 547.67
Net Interest Income : 649.62
Interest Expenses : 1,590.27
Operating Expenses : 112.47
Provisions and contingencies : 236.04
Net Profit : 188.78
Operating Profit : 424.82
Priority Sector Advances : 6,155.00
Gross Non-Performing Assets : 209.39
Net Non-Performing Assets : 205.95
Other Information
Number of Offices : 520
Number of ATMs : 351
Number of Employees : 6,227
Business Per Employee (Rs. in lakh) : 606.39
Profit Per Employee (Rs. in lakh) : 3.03
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44..33..88 KKAARRUURR VVYYSSYYAA BBAANNKK LLTTDD..
OVERVIEW
The Karur Vysya Bank Limited popularly known as KVB was such one to
be set up in 1916 by two great visionaries and illustrious sons of Karur, the
Late Shri M. A. Venkatarama Chettiar and the Late Shri Athi Krishna
Chettiar to inculcate savings habit and to provide financial assistance to
traders and small agriculturists in and around Karur, a textile town in
Tamil Nadu state of India. This bank was formed as a simple financial unit
in order to provide aid and financial assistance to the traders and small
agriculturists in and around Karur. Though the Bank had a very humble
beginning with Rs.1 lakh Capital, the Bank had borne myriad changes and
challenges in the past decades so fruitfully and profitably to emerge as one
of the leading banks in India with strong and healthy fundamentals.
KVB is one of the early banks to adhere to the norm of Capital Adequacy
Ratio stipulated by RBI right from its introduction. The Bank has been
maintaining a healthy Capital Adequacy Ratio of over 16% as against the
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mandatory norm of 9% prescribed by the RBI, which will take care of
future asset growth. Karur Vysya Bank became the forerunners in the
banking sector to achieve full networking of its branches under Core
Banking Solutions. They offer their services through multiple delivery
channels.
CORPORATE PROFILE
Date of Incorporation : June 26, 1916
Registered Office : P. B. No. 21, Erode Road,
Karur,
Tamil Nadu – 639 002.
Tel.No.: 04324 – 226520 / 225521 / 225522
Public Issue Date : July 26, 2000
BSE Code : 590003
NSE Code : KARURVYSYA
Board of Directors : Shri P. T. Kuppuswamy, MD & CEO
(As on March 31, 2009) Shri V. G. Mohan Prasad, Director
Shri M. G. S. Ramesh Babu, Director
Shri S. Ganapthi Subramanian, Director
Shri V. Santhanaraman, Director
Shri A. J. Suriyanarayana, Additional Director
Shri T. M. Lakshmikanthan, Executive Director
Shri K. P. Kumar, Non Exe. Part Time Chairman
Shri S. Krishna Kumar, Director
Shri K. Parameshwara Rao, Director
Shri G. Rajasekaran, Additional Director
Web URL : http://www.kvb.co.in
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KARUR VYSYA BANK AT A GLANCE AS ON MARCH 31, 2009
Financial Results
(Rs. in crores)
Total Assets / Liabilities : 17,060.74
Total Deposits : 15,101.39
Total Advances : 10,562.90
Total Investments : 4,715.98
Cash and Balances with RBI : 963.82
Fixed Assets : 115.69
Interest Income : 1,446.09
Non-Interest Income : 265.21
Net Interest Income : 410.41
Interest Expenses : 1,035.68
Operating Expenses : 257.60
Provisions and contingencies : 182.18
Net Profit : 235.84
Operating Profit : 418.02
Priority Sector Advances : 3,781.09
Gross Non-Performing Assets : 205.86
Net Non-Performing Assets : 25.82
Other Information
Number of Offices : 312
Number of ATMs : 324
Number of Employees : 3,941
Business Per Employee (Rs. in lakh) : 638.00
Profit Per Employee (Rs. in lakh) : 5.98
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REFERENCES
1. Annual Reports of selected private sector banks, various issues from
1999-2000 to 2008-2009.
2. Muraleedharan, “Modern Banking: Theory and Practice”, PHI Learning
Pvt. Ltd., New Delhi, 2009, pp. 183-185.
3. Murthy, D. K. and Venugopal, “Indian Financial System”, I. K.
International Publishing House Pvt. Ltd., New Delhi, 2006, pp. 42-46.
4. Roussakis, Emmanuel N., “Commercial Banking in an Era of Deregulation”,
Praeger Publishers, London, Third Edition, 1997, pp. 240-241.
5. Srivastava, P. K., “Banking – Theory and Practice”, Himalaya Publishing
House, Mumbai, Eighth Revised Edition, 2000, p. 45.
6. Subramanian, K. and Velayudham, T. K., “Banking Reforms in India –
Managing Change”, Tata McGraw Hill Publishing Co. Ltd., New Delhi,
2007, pp. 559-562.
7. http://www.axisbank.com
8. http://www.bankofrajasthan.com
9. http://www.dhanbank.com
10. http://www.hdfcbank.com
11. http://www.icicibank.com
12. http://www.indusind.com
13. http://www.ingvysyabank.com
14. http://www.kvb.co.in
15. http://www.rbi.org.in
16. www.indianmba.com