Scribd Logo
Upload

Welcome to Scribd!

  • 74 views

    Indian Banking

    Uploaded by

    fecaxeyivu
    The document provides an overview of the Indian banking industry from 1870 to 2004. It discusses the key events and reforms that shaped the industry such as the establishment of the Reserve Bank of India in 1934 and the nationalization of banks in 1969. It also summarizes Porter's Five Forces analysis of the industry, noting that bargaining power of suppliers and buyers is low, threat of new entrants is low, but threat of substitutes and rivalry among existing competitors is high. Finally, it outlines some future trends in the industry including an emphasis on service quality, brand development, and adoption of new technologies.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd

    Indian Banking

    Uploaded by

    fecaxeyivu
    74 views23 pages
    The document provides an overview of the Indian banking industry from 1870 to 2004. It discusses the key events and reforms that shaped the industry such as the establishment of the Reserve Bank of India in 1934 and the nationalization of banks in 1969. It also summarizes Porter's Five Forces analysis of the industry, noting that bargaining power of suppliers and buyers is low, threat of new entrants is low, but threat of substitutes and rivalry among existing competitors is high. Finally, it outlines some future trends in the industry including an emphasis on service quality, brand development, and adoption of new technologies.

    Original Title

    IndianBanking.ppt

    Copyright

    © © All Rights Reserved

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document provides an overview of the Indian banking industry from 1870 to 2004. It discusses the key events and reforms that shaped the industry such as the establishment of the Reserve Bank of India in 1934 and the nationalization of banks in 1969. It also summarizes Porter's Five Forces analysis of the industry, noting that bargaining power of suppliers and buyers is low, threat of new entrants is low, but threat of substitutes and rivalry among existing competitors is high. Finally, it outlines some future trends in the industry including an emphasis on service quality, brand development, and adoption of new technologies.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    74 views23 pages

    Indian Banking

    Uploaded by

    fecaxeyivu
    The document provides an overview of the Indian banking industry from 1870 to 2004. It discusses the key events and reforms that shaped the industry such as the establishment of the Reserve Bank of India in 1934 and the nationalization of banks in 1969. It also summarizes Porter's Five Forces analysis of the industry, noting that bargaining power of suppliers and buyers is low, threat of new entrants is low, but threat of substitutes and rivalry among existing competitors is high. Finally, it outlines some future trends in the industry including an emphasis on service quality, brand development, and adoption of new technologies.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 23

    Indian Banking Industry

    Ayush Vaish
    Jayanti Dutta
    Kapildev C Iyer
    Kunal Singhal
    Raveendra C
    Sathya Subramanium
    Shashank Rath
    Sudhanshu Nagpal
    Tara Gupta
    Background & Overview 1870-1991
    1870 Bank of Hindustan set up
    1934 Reserve Bank of India Act passed
    1949 Banking Regulation Act
    1955 Takeover of Imperial Bank (SBI)
    1960 Empowerment of RBI
    1969 Subsequent Nationalisation of Banks


    1992 Post Liberalisation reforms
    1993
    Amendment of Banking Regulations Act
    Entry of Private Players
    Reduction of Statutory Liquidity Ratio
    Since 1994
    Deregulation of Lending Rates
    Deregulation of Interest Rates
    Risk Based Capital Standard for Banks
    Prudential Accounting Norms
    Rural Infrastructure Development Fund
    Strong system of Financial supervision under RBI

    Background & Overview 1992-2004
    Scheduled Banks in India
    Scheduled Cooperative Banks Scheduled Commercial Banks
    Urban
    Cooperative
    Banks
    State
    Cooperative
    Banks
    Regional
    Rural
    Banks
    Foreign
    Banks
    Private
    Sector
    Banks
    Public
    Sector
    Banks
    SBI
    &
    subsidiaries
    Old Private
    Sector
    Banks
    New Private
    Sector
    Banks
    Nationalized
    Banks
    Structure of Indian Banking Industry
    Central Bank, created under the Reserve Bank of India
    Act, 1934
    Empowered by the Banking Regulations Act 1949.
    Main Functions
    Monetary Authority
    Regulation and supervision of the Financial System
    Manager of Exchange Control
    Issuer of Currency
    Developmental Role
    Banker to the Government
    Banker of banks
    Reserve Bank of India
    Banking Products - Corporate
    Funded Services
    Working Capital Finance
    Short Term Finance
    Bill Discounting
    Export Credit
    Structured Cash Flow
    Financing
    Channel/Vendor
    Financing

    Non Funded Services
    Letters of Credit
    Guarantees
    Collection of Documents
    Bills Collection
    Cash Management Services
    Loan Syndication
    Supply Chain Management
    Payment Gateway Services


    Banking Products - Retail
    Assets

    Auto Loans
    Housing Loans
    Credit Card And Debit
    Card
    Wealth Management
    Insurance
    Liabilities

    Retail Deposits
    Porters Five Forces Analysis
    Suppliers Power
    Public & Corporate Deposits
    80% of total liabilities
    Base too fragmented
    Power increasing due to
    Integration of rural areas
    Improved Communication & Reach
    RBI
    Supplier of funds only
    2% of total liabilities
    Workforce
    highly unionized industry.

    Supplier Power is LOW
    Priority Sector
    Agriculture
    Small Scale Industries
    Others
    Each accounts for 13% of Bank Credit
    Wide dispersion of the borrowers.
    Low Credit Standing
    This segment power is LOW
    Buyers Power
    Wholesale Trade
    Diffused base
    Low credit rating
    3.8 percent of bank credit
    Industry- Medium and Large firms
    35% of total Bank Credit
    Credit Surplus situation
    Alternate avenues
    This segment power is MODERATE
    Buyers Power (contd.)
    Others
    NBFC 4 percent of banks credit
    Individuals 15 percent of banks credit
    RBI
    Control over SLR
    Buyer Power is LOW
    Threat of New Entrants
    Barriers to Entry
    Government Policies & Regulations
    Reach for economies of scale
    Product Differentiation
    Low Profitability

    Threat of New Entrant is LOW
    Threat of Substitutes
    Barriers to Entry
    Unorganized market
    Capital market
    Insurance
    NBFC
    Financial Institutions
    Post Office deposits
    External commercial borrowings

    Threat of Substitutes is HIGH
    10 Banks Deposit Concentration Ratio: 60.9
    82.2% Deposits with PSBs.
    Friendlier Regulation promoting Competition
    Slow Industrial Growth increasing rivalry to capture
    potentially good clients
    Increased Rivalry in Retail Banking
    Brand Building Exercise
    Customer Service
    Coverage
    Undifferentiated Products

    Extent of Rivalry is HIGH
    Rivalry
    Government Regulations
    Agri lending concerns
    Infrastructure focus
    FDI Policy
    Securitisation Act fillip
    Revival of Core Industry Segments
    Inflationary Pressures- RBI increasing interest rates
    Impact of Basel II norms

    HIGH Impact of Government Regulations
    External Factors affecting the Industry
    External Factors affecting the Industry
    Lifestyle Changes
    Lesser hesitance towards taking credit
    Less time with people, so need for new products

    Technology
    Internet banking/ ATMs
    Bank branches become more of a Relationship management offices

    HIGH Impact of Lifestyle & Technology
    Bargaining Power
    of Suppliers



    Rivalry/Competiti
    on
    Threat of Substitutes

    Threat of New entrants
    Bargaining Power
    of Buyers
    LOW
    LOW
    MODERATE
    HIGH
    HIGH
    Summary of Porters Forces
    Emergence of New Customer Base
    Demographic Changes
    Growing Demand of sophisticated Retail Banking
    services.
    Knowledge
    Innovation
    Technology
    Convergence
    Consolidation
    Key Drivers
    Geographical spread
    Range of services
    Service quality
    Human resource quality
    Focus on brandbuilding
    Distribution channels
    Technological leadership
    Price positions
    Strategic Dimensions
    Strategic Map
    S
    e
    r
    v
    i
    c
    e

    Q
    u
    a
    l
    i
    t
    y

    Rural Urban
    L
    o
    w

    H
    i
    g
    h

    Regional
    Citibank
    ABN Amro
    State Bank of India
    ICICI Bank
    HDFC
    IndusInd Bank
    Vysya Bank
    Karur Vysya
    PNB
    Andhra Bank
    Canara Bank
    Co-operative Banks
    Rural Banks
    Bank of Baroda
    Bank of India
    Stan C
    HSBC
    Geographical Spread
    Improvement in service
    Better technology
    Staff productivity
    Increase of reach
    No. of branches, ATMs, etc
    Internet banking, tele-banking
    Changes in channel structure
    Heavy investment
    Brand-building
    Greater acceptance among people
    Heavy advertising costs
    Mobility Barriers in the Industry
    Transformation of the industry structure
    Emphasis on brand development
    Adoption of new technologies
    Improvement of service quality
    Consolidation
    Globalization of operations
    Universalization of Banking
    Focus on cost efficiency
    Future Trends in Indian Banking
    Thank You

    You might also like