TOPIC- BANKING SECTOR IN INDIA

PRESENTED BY:SUDHIR KUMAR(421)

B. SACHIN(411)J. RAMESH(436)

G. SRINIVAS(440)T. HARII KUMAR(449)

BRM TERM PARPER PRESENTATION

STRUCTURE OF BANKES

The entire organized banking system comprises of scheduled and non-scheduled banks.

Scheduled banks Unscheduled banksScheduled Banks: A scheduled bank is a bank that is listed under the

second schedule of the RBI Act, 1934. these banks have to fulfill certain conditions such as having a paid up capital and reserves of at least 0.5 million .

CONTINUE… Scheduled banks are further classified into

commercial and cooperative banks. The basic difference between scheduled

commercial banks and scheduled cooperative banks is in their holding pattern. Scheduled cooperative banks are cooperative credit institutions that are registered under the Cooperative Societies Act. These banks work according to the cooperative principles of mutual assistance

Indian banking sector: India has grown significantly from a ` 5.15 trillion economy in 1991 to ` 73.1 trillion in FY11

(a C AGR of 14.2%). Aggregate deposits of SC Bs have grown at a C AGR of 17.9% during 1991-2011 to ` 52.1

trillion in FY11. Bank lending is a significant driver of the economy and has grown at a C AGR of 19.3%

during 1991- 2011 to ` 39.4 trillion. Deposits/GDP rose from 37.4% in 1991 to 71.3% in 2011. Similarly, bank credit/GDP has grown from 22.6% in 1991 to 53.9% in FY11. Bank credit to

commercial sector increased from 30.3% of GDP in 1990 to 57.6% in 2011. Bank offices in India have grown at a C AGR of 2% during 1991-2010 to 87,768 bank offices

in 2010 from 60,220 offices in 1991. The average population coverage by a commercial bank branch in urban areas improved

from 12,300 as on Jun 30, 2005 to 9,400 as on Jun 30, 2010. And in rural and semi urban areas from 17,200 as on Jun 30, 2005 to 15,900 as on Jun 30,

2010. The all India weighted average improved from 15,500 to 13,400.

CONTINUE… In India, the penetration of banking services is very low. Merely,

57% of population has access to a bank account (savings) and 13% of population has debit cards and 2% has credit cards.

This represents the unmet demand and the scope for expansion for the banks in India.

Bank deposits are a significant driver of GDP growth and as a percentage of GDP have grown significantly over the years. Bank deposits grew 15.9% From ` 44928.3 bn in FY10 to ` 52079.8 bn in FY11.

CONTINUE… During FY11, time deposits constituted 87.7% and demand

deposits constituted 12.3% of aggregate bank deposits. Demand deposits after witnessing a growth of 23.4% in FY10

declined 0.6% in FY11 whereas time deposits grew 18.7% in FY11 over16.2% in FY10.

Savings deposits with SC Bs grew 21.2% in FY11 versus 26.2% in FY10. Aggregate deposits of SC Bs, as a percentage of GDP, were as high as 71.3% in FY11, highlighting the contribution of the banking sector to the economy.

The share has seen a constant rise since FY05 when total deposits of the SC Bs as a percentage of GDP stood at 57.2%.

Retail banking: Retail banking activities are identified based on four

criteria of orientation, granularity, product criterion and low value of individual exposures.

Retail banking exposures to one entity is limited to the extent of 0.2% of the total retail portfolio of the bank or the absolute limit of Rs. 50 million.

Retail banking products on the liability side includes all types of deposit accounts and mortgages and loans (personal, housing, educational etc) on the assets side of banks. It also includes other ancillary products and services like credit cards, demat accounts etc.

MAJOR PLAYERS…

MARKET SIZE…

Private sector: Top banks

TOP PUBLIC SECTOR BANKS

CHECKING THE INDEPENDENCY WITHIN THE PEOPLE IN SELECTING THE TYPE OF BANK (GOVT

OR PRIVATE BANK)?

SURVEY OBJECTIVE

ANALYSIS DONE USING CHI-SQUARE TESTING TO OUR PRIMARY DATA.

Test for number of Govt. & Private bank A/Cs with the individuals.

ACTUALCount of GENDERRow Labels GOVT. PVT. TotalFEMALE 13 6 19MALE 17 14 31Grand Total 30 20 50

EXPECTEDCount of GENDER

Row LabelsGOVT. PVT. Total

FEMALE 11.4 7.6 19MALE 10.54 8.68 31Grand Total 30 19 50

Ho : The number of accounts in Govt. & private banks are independent on gender.H1 : The number of accounts in Govt. & private banks are dependent on gender.CONCLUSIONThere the p-value is less then alpha (0.05) so we reject the Ho and accept the H1 i.e. there is dependency on gender the individual accounts and also it says that majority of male and female members are holding govt. bank accounts which disclose their belief in govt. Banks.

P-VALUE= 0.005

Test for job preference by individuals

ACTUALCount of GENDER Column Labels

Row Labels GOVT. PVT.Grand Total

FEMALE 9 10 19MALE 20 11 31Grand Total 29 21 50

EXPECTEDCount of GENDER Column Labels

Row Labels GOVT. PVT.Grand Total

FEMALE 11.02 7.98 19MALE 12.4 6.82 31Grand Total 29 21 50

Ho : The number of jobs preferred in Govt. & private banks are independent on gender.

H1 : The number of jobs preferred in Govt. & private banks are dependent on gender.

P-VALUE= 0.0044

CONCLUSION= We reject the H0 and accept alternative because p-value is less then alpha. We conclude that there is a dependency between male & female in preference of job and also there is less significance difference in male candidate preferring jobs. Female are more conscious about preferring govt. jobs.

Test to know peoples opinion on where the customer’s facilities are better?

ACTUALCount of BETTER CUSTOMER FACILITY

Column Labels

Row Labels GOVT. PVT. TotalFEMALE 7 12 19MALE 13 18 31Grand Total 20 30 50

EXPECTEDCount of BETTER CUSTOMER FACILITY

Column Labels

Row LabelsGOVT. PVT. Total

FEMALE 7.6 11.4 19MALE 7.6 11.4 31Grand Total 20 30 50

P-VALUE= 0.005Ho: Gender preference's are independent while choosing better customer facilities at different banks.H1: Gender preference's are dependent while choosing better customer facilities at different banks.CONCLUSION= We reject the H0 & accepting the alternate. We also conclude that Gender preference's are dependent while choosing better customer facilities at different banks.

Test for checking loyalty of people towards there bank?Count of LOYALTY Column LabelsRow Labels GOVT. PVT. TotalFEMALE 11 8 19MALE 20 11 31Grand Total 31 19 50

Count of LOYALTY Column LabelsRow Labels GOVT. PVT. TotalFEMALE 11.78 7.22 19MALE 19.22 11.78 31Grand Total 31 19 50

P-VALUE=0.639

Ho: Gender preference's are independent while choosing “of being loyal with the bank”.H1: Gender preference's are dependent while choosing of being loyal with the bank.CONCLUSION= We accept the H0 & reject the alternate. We also conclude that Gender preference's are independent while choosing “of being loyal with the bank”.

Q7. PERCEPTION WHY DO THEY PREFER TO DEPOSITE THEIR MONEY IN BANKS.

Row Labels

CUSTOMER RELATION

INTREST RATE

MORE SECURITY

SERVICE TIME

TRUST

Grand Total

FEMALE 2 3 8 3 3 19

MALE 1 9 10 6 5 31

Grand Total 3 12 18 9 8 50

CUSTO

MER RELA

TIONSH

IP

INTRES

T RAT

E

MORE SEC

URITY

SERVICE T

IMETR

UST0%

10%20%30%40%50%60%70%80%90%

100%

MALEFEMALE

CONTINUE… WITH INTERPRETATION

When comparing male perception with female males are more conscious in depositing cash in the bank having their own criteria.

Q8. PERCEPTION WHY DO THEY PREFER TO TAKE LOAN FROM THE BANK?

Row Labels

CUSTOMER RELATIONSHIP

INTREST RATE

MORE SECURITY

SECURITY

SERVICE TIME TRUST Total

FEMALE 2 6 6 3 2 19MALE 3 16 2 1 7 2 31

Grand Total 5 22 8 1 10 4 50

CONTINUE… WITH INTERPRETATION

CUSTO

MER RELA

TIONSH

IP

INTRES

T RAT

E

MORE SEC

URITY

SECURITY

SERVICE T

IMETR

UST0%

10%20%30%40%50%60%70%80%90%

100%

MALEFEMALE

When comparing male perception with female males are more conscious in taking loan from the bank having their own criteria.