PROJECT REPORT ON INDIAN BANK

Submitted by: Chetanpreet Singh MBA 2008-2010 Chitkara Institute of Engineering and Technology

INDIAN BANKING INDUSTRY

Phase 1

Phase 2Phase 3

SWOT ANALYSIS OF INDIAN BANKING INDUSTRY

Strengths:• BANKING REFORMS(CRR AND SLR)• DEVELOPED IT SECTOR(CBS)

Weaknesses:• MAJOR PORTION UNDER PSBS• HIGH AMOUNT OF NPAS

SWOT ANALYSIS OF INDIAN BANKING INDUSTRY

Oppurtunities:• LARGE AREA CONNECTIVITY(ATM)• DEVELOPMENT OF IT INDUSTRY

Weaknesses:• DOWNTURN IN THE INDIAN ECONOMY TO

CONTINUE TILL MAY 2010• COMPETITION WITH FOREIGN BANKS

PROFILE OF INDIAN BANK

INTRODUCTION

INDIAN BANK was established on 15th august 1907 with an authorized capital of Rs. 20 lakh and got nationalized in the year 1969.

Team of INDIAN BANK: 22000 dedicated staff Total Business: Rs. 1,24,413 crores Total branches: 1644 branches

Subsidiaries: • Indbank Merchant Banking Services Ltd • IndBank Housing Ltd. • IndFund Management Ltd

TOP MANAGEMENT

M S SUNDARA RAJAN

CHAIRMAN AND MANAGING DIRECTOR

A SUBRAMANIAN

EXECUTIVE DIRECTOR

AS BHATTACHARYA

EXECUTIVE DIRECTOR

BANK’S MISSION STATEMENT To be a “common man’s bank” to provide all

financial products and services to all our customers:

• Under one roof• At an affordable cost and• In a fair and transparent manner

INDIAN BANK TIE UPSTie up with HDFC Standard Life Insurance Company Ltd.United Life Insurance CompanySmall Industries Development Bank of India(SIDBI)Times online money

SWOT ANALYSIS OF INDIAN BANK

Strengths:Experienced employeesNationalised bankCBS operations

Weaknesses:Government Control Lack of technology Lack of managerial skills

SWOT ANALYSIS OF INDIAN BANK

Oppurtunities: Major Tie ups Diversification into insurance sectors Demographic shifts

Threats: Competition from foreign banks Private lenders Lack of positioning

Current Financial Scenario PARTICULARS 2007-08 2008-09 %age

increase/decrease

DEPOSITS 61045.95 72581.83 18.89%

ADVANCES 39838.71 51465.28 29.18%

INTEREST EARNED 5150.78 6830.33 32.60%

NET PROFIT 1008.74 1245.32 23.45%

EPS 22.66 28.10 24%

PROJECT

WORK STUDY OF COMPARISON OF LOAN RATES OF INDIAN BANK WITH OTHER

PLAYERS

OBJECTIVE OF THE STUDY

Aim of the study“To know about interest rates on loan products

and to analyse which player is most competent”

Objective of the studyTo have a comparative study of INTERST RATES To know CUSTOMER PREFERENCESTo know excellence of loan products of INDIAN

BANK

Comparison of interest rates on these products of loan has been done.

HOME LOANEDUCATION LOANCAR LOAN

Key Findings of Home Loan Indian bank is good in fixed rate of interest for higher credit

limit i.e. 11.50 % which is constant with respect o tenure of loan period.

A new monetary stimulus declared by the Reserve Bank of India include further cut in home loans, auto loans and other loan rates.

Lending rates on homes are changing very quickly because as the market is not stagnant.

Period of recession has upset the whole market and to meet the demands and to won back old economy Government of India is taking steps with respect to home loans.

Key Findings of Education LoanINDIAN BANK has constancy in this rate at 12

% which slightly changes by 0.25% in higher amount of loan.

Different bank has different way of setting loan interest.

Rate of interest on higher education is higher than other loan products.

Key Findings of Car Loan Car loan is moderate and near to 11% approx. Indian bank is good in long term and high

finance amount.Indian bank ranks 3rd in the row of car loan

preference by the customers while comparison with the other players.

Indian bank deals at high scale and have contacts with big players in this corporate world.

PROJECT

WORKING OF LOAN SECTION OF BANK BRANCH

OBJECTIVE OF THE STUDY

Aim of the study “To know how bank analyse the financial

position of the company while sanctioning loan”

Objective of the study• To know about analysis of the company by bank• To acquaint to the working of loan department in

a Bank branch • To know the bank’s policies to sanction loan

DETAILS Actual study done over the sanction of loan

to the ABC ltd. with its previous year balance sheets and Profit and loss account and also projected for 2010 Balance Sheet and P & L account...

FINDINGS OF FINANCIAL STATEMENTS• Financial Indicators like capital, sales,

debtors, net working capital, current ratio etc shows that ABC ltd. is in sound financial position.

• Financial requirement is calculated:i. By Gross sale methodii. Computation on the basis of 20% of salesiii. Computation with STBC Method

CONCLUSION Hence past trends of financial years of the firm

have analysed and show positive results thereof. This all justifies that the projected sales and balance sheet is true and fair and requests need for limit of Rs. 40 crores is genuine. Thus, limit is enhanced to Rs. 40 crores. Issue the sanction ticket stipulating the securities and other terms as per HO guidelines.

Assistant General Manager

• Know about the areas in which bank is weaker and in which they have to improve upon.

• To rank itself this report is beneficial.• Off loading burden of the existing employees of the Indian

bank.• It made clear to bank that which bank has good in what so

that to follow their strategy to make own goals for future years.

• Bank likely to accrue the benefit of summary of latest interest rates and current position of the Indian bank industry for increase in knowledge.

• While helping through the project norms and rules are reviewed by the bank officials which make them upto date.

LIMITATIONS• Analysis is only a means and not the end. The analysis

has been done on the basis of my own interpretations and upto best of my knowledge but every analyst have his or her own interpretations and suggestions.

• Only quantitative factors are taken into account while making the project not qualitative.

• The non-monetary factors are not taken into consideration

• The stipulated time was not sufficient to understand each and every aspect of the system but I have tried to balance and cover each aspect within the stipulated time.

• Restricted finance was also one of the limitations.• As to have an real life practical experience everything in

real and original is required which is not available due to confidential norms and rules which limits the study.

SUGGESTIONS• Return on equity has been declined from 20.9% in 2007-08 to

18.63% in 2008-09 to which bank has to work upon to retain its efficiency in working.

• As comparison with other banks INDIAN BANK’s developing rate is much lesser than other players. Expenditure on infrastructure is also less. Bank management have to taken under this problem so that progress should be in right order and direction.

• INDIAN BANK has also to spend money on advertisement. Commonly bank requires nominal or no advertisement because customers come to place of their convenience. But INDIAN BANK is not well known brand so it has to give advertisement as a tool of promotion.