Sr. No.

Particulars Page
No.
1. Introduction to the Industry
1.1 Banking in India
1.2 History
1.3 Nationalized banks in India
1.4 Private bank
2. Review of literature
2.2
 CHAPTER-1

INTRODUCTION TO THE BANKING

INDUSTRY
BANKING IN INDIA:
1.1 HISTORY
The first bank, though conservative, was establish in 1786 till today, the journey of Indian
banking system can be segregated into three distinct phases. They are mentioned below:
 PHASE I - Early phase from 1786 to 1969 of Indian banks.
 PHASE II -Nationalization of Indian Banks and up to 1991
 PHASE III – Indian financial & banking sector reforms after 1991

PHASE I

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and
Bengal bank. The East India Company established Bank of Bengal (1809), Bank of Bombay
(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. This
three banks were amalgamated in 1920 and imperial Bank of India was established which start as
private shareholders banks, mostly Europeans shareholders. During the first phase the growth
was very slow and banks also experienced periodic failures between 1913 and 1948.
There were approximately 1100 Banks mostly small. To streamline the functioning and activities
of commercial banks, the Government of India came up with the Banking Companies Act, 1949
which was later changed to Banking Regulation Act 1949 as per amending Act of 1965.
Reserve Bank of India was vested with extensive powers for the supervision of banking in India
as the Central Banking Authority. During those day’s public has lesser confidence in bank. As an
aftermath deposit mobilization was slow. Abreast of it the savings bank facility provided by the
Postal department was comparatively safer. Moreover, funds were largely given to the traders.

PHASE II

Government took major steps in the Indian Banking Sector Reform after independence. In 1955,
it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially
in rural and semi-urban areas. Second phase of nationalization Indian Banking Sector Reform
was carried out in 1980 with seven more banks.
This step brought 80% of the banking segment in India under Government ownership. The
following are the steps taken by the Government of India to Regulate Banking Institutions in the
Country:
 1949: Enactment of Banking Regulation Act.
 1955: Nationalization of State Bank of India.
 1959: Nationalization of SBI subsidiaries.
 1961: Insurance cover extended to deposits.
 1969: Nationalization of 14 major banks.
 1971: Creation of credit guarantee corporation.
 1975: Creation of regional banks.
 1980: Nationalization of seven banks deposits over 200 crore.
After the Nationalization of Banks, the branches of the public sector Banks India raise to
approximately 80% in deposits and advances took a huge jump by 11,000%. Banking in the
sunshine of Government ownership gave the public implicit faith and immense confidence about
the sustainability of these institutions.

PHASE III

This phase has introduced many more products and facilities in the banking committee was set
up by his name which worked for the liberalization of banking practices. The country is flooded
with foreign banks and their ATM stations. Efforts are being put to give a satisfactory service to
customers. Phone banking and net banking is introduced. The financial system of India has
shown a great deal of resilience. It is sheltered from any crisis triggered by any external macro
economic shock as other East Asian Countries suffered. This is all due to a flexible exchange
rate, the foreign reserves are high, the capital account is not yet fully convertible, and banks and
their customers have limited foreign exchange exposure.

1.2 FEATURES & CHARACTERISTICS OF BANKS:

BANKING plays an important role in every country for their economic growth as well as
currency factor. Majority Development for an country depends on banking sector as banks
maintain the competition between currency of many of the developed And developing countries
7 an there work is always attached directly with peoples heart as they store there hard core
painstaking money in their hands for saving as well as they borrow money from banks which is
known as LOAN. This Scheme helps people building their HOMES & business as well as their
general requirement like CARs, LCDs, home decoration or maintenance Etc.
BANKING involves following characteristics as written:-

1. DEALING IN MONEY
All banks basically deals with money as they are financial institute where we links for our
moneys exchanges we will either gave or deposit money in banks or will led/barrow money
from banks for our requirement as per we need.

2. ACCEPTANCE OF MONEY DEPOSITS

All banks always works for their consumer satisfaction as a result they accepts money from all
their customers in a way there they also gave an Interest on deposited with the duration passed
to money in bank. Banks deposits money from peoples & after that the protection of money is
the responsibility of banks any misfortune happens to the consumer’s money will be returned
by banks to customer within a given period of time.

3. PAYMENT AND WITHDRAWS

A person who has deposit their money into bank can able to withdraw it at any time of instance.
A customer can also able to easy payment & withdraw their money with the facilities of ATM,
DRAFTS, MONEY ORDERS, and CHEQUES etc.

4. INDIVIDUAL OR COMPANIES
Bank can be of any type it can be a company or firm or also a person which are involved in the
business of money. This is also how banks are defined.

5. VARIOUS BRANCHES
A bank can also have multiple branches for the facility of their customers as every person
cannot be able to go to the main branch of the Bank so banks further grows their own branches
so that they can reach to each n every person.

6. FUNCTIONS INCREASING
BANKS always believe in developing of facilities for the customers so that they always
increase their functions for working like developing latest ATM machines for the transactions
of money and also net banking by which will be able to buy & sell any item from the sitting in
our comfort zone.

7. BUSINESS IN BANKING
BANKS do the business of money without any subsidiary business. There only responsibility is
to satisfy their customers. This is also how banks define as they do the business of money
interchanging from 1 hand to other.

8. IDENTIFICATION
Each bank has a unique name but having BANK name as common in all. Which identifies the
banks existence? People deals with different banks having different names but bank word in
common in all of them.

9. FACILITY OF ADVANCE
Banks also led/gave money to the people in a form of LOAN with minimum amount of interest.
people which are not able to full fill their requirements at an instance of time which required a
large amount of money at that time banks lend money to them so that they full fill there
requiems and returns back in small installment which are known as EMIs.
 1.3 FUND BASED SERVICES
 Working capital financing:
A firm's working capital is the money available to meet current obligations (those due in less
than a year) and to acquire earning assets. China trust Commercial Bank offers corporations
Working Capital Finance to meet their operating expenses, purchasing inventory, receivables
financing, either by direct funding or by issuing letter of credit.

 Short term financing:

The bank can structure low cost credit programmes and cash flow financing to meet your
specific short-term cash requirements. The loans are structured to enhance your profitability by
scheduling the repayment to match the cash flow available to repay the debt. 
 Bill discounting:
Bill discounting is a short tenure financing instrument for companies willing to discount their
purchase / sales bills to get funds for the short run and as for the investors in them. These are
customized to suit your requirement for short-term finance, from the date of sale to the date of
receipt of payment there on. We consider two types of bills facility viz. where documents are
delivered on payment, i.e. D/P Bills and where the documents are delivered against acceptance
that is D/A bills.
 Export credit:
We offer short-term working capital finance both at the pre-shipment and post-shipment stages 
Pre-shipment finance facility provides liquidity for procuring raw materials, processing, packing,
transporting meant for export.
Post-shipment finance is a credit facility extended from the date of shipment of goods till the
realization of the export proceeds.
 Structured finance:
Structured Finance describes any "non-standard" way of raising money. These tailor-made
securities go beyond "standard" securities like conventional loans, debentures, debt, and equity.
The reason to structure a more advanced security may be that conventional securities may be
unattractive, unavailable or too expensive. These products are structured for both long and short
tenor with exit options at intervals for both parties.
 Term lending
CTCB offers very competitive rates for term financing. We also provide advisory services to
companies for syndication of the term loans to a wide spectrum of financial institutions. 
Under Term Finance, Chinatrust Commercial Bank, offers the following:
Fund Based Finance for capital expenditure acquisition of fixed assets towards starting or
expanding a business to swap with high cost existing debt from other bank / financial
institution
Non-Fund Based Finance in the form of Deferred Payment Guarantee for acquisition of
fixed assets towards starting / expanding a business or industrial unit.
 1.4 NON FUND BASED SERVICES
 Letter of credit
Letter of credit is a legal document issued by a buyer’s bank that upon presentation of required
documents payment would be made. Usually confirmed by the seller's bank, protection is given
to the seller that payment will be made if the goods are shipped correctly, following the
conditions laid down when the LC is opened or based on subsequent amendments and protection
is given to the buyer that the goods will be shipped before payment is made.
The LC facility can be granted to the importers after assessing their requirement/ credit
worthiness/ financial strength and other parameters being to the satisfaction of the Bank. 
Chinatrust Commercial Bank can extend Import financing through Letters of Credit, which are
well accepted globally and are supported by a strong trade finance set-up. We are direct members
of SWIFT and have correspondent banking arrangements with many banks worldwide.
 Bank guarantees
Bank Guarantee is a contract to perform the promise or discharge the liability of a third person in
case of his default. Chinatrust Commercial Bank sanctions Bank Guarantee limit to facilitate
issue of guarantees on behalf of its clients. Various types of guarantees offered are – financial,
performance, bid bond, tenders, customs, etc. Our guarantees are accepted by all government
agencies including Customs, Excise, Insurance Companies, Shipping Companies, all Capital
Market Agencies such as NSE, BSE, ASE, CSE etc. and all major corporates.
COLLECTION OF DOCUMENTS
we have a full-fledged trade finance set-up catering to all your trade related requirements, which
offers you the following advantages:
1. Better turnaround time through timely processing of your documents
2. Facilitating faster payments
3. Lower cost
4. Excellent trade support
5. Arrangement of credit reports of overseas parties
Specialized advice on international trade related issues as well as technical issues such as
Exchange Control requirements, RBI reporting, latest circulars and latest international
development.
 1.5 BANKING STRUCTURE IN INDIA:-

Reserve Bank of India

(central bank &supreme

monetary authority of the
country)

Scheduled banks

Commercial Banks Co-operatives Bank

Public Private Foreign Regional

sector (27) sector (25) bank in Rural
India (39) Banks(357)
Urban
cooperative
Banks (53)
State
cooperative
Old Private Banks Nationalized Banks (31)
(17) banks (19)

State Bank of India & its New Private

Associates (8) Banks (8)
1. Reserve Bank of India (RBI)
The country had no central bank prior to the establishment of the RBI. The RBI is the supreme
monetary and banking authority in the country and controls the banking system in India. It is
called the Reserve Bank’ as it keeps the reserves of all commercial banks.
Scheduled & Unscheduled Banks
A scheduled bank is a bank that is listed under the second schedule of the RBI Act, 1934. In
order to be included under this schedule of the RBI Act, banks have to fulfill certain conditions
such as having a paid up capital and reserves of at least 0.5 million and satisfying the Reserve
Bank that its affairs are not being conducted in a manner prejudicial to the interests of its
depositors. Scheduled banks are further classified into commercial and cooperative banks. Non
scheduled banks are those which are not included in the second schedule of the RBI Act, 1934.
At present these are only three such banks in the country.
Commercial Banks
Commercial banks may be defined as, any banking organization that deals with the deposits
and loans of business organizations. Commercial banks issue bank checks and drafts, as well as
accept money on term deposits.  Commercial banks also act as moneylenders, by way of
installment loans and overdrafts. Commercial banks also allow for a variety of deposit
accounts, such as checking, savings, and time deposit. These institutions are run to make a
profit and owned by a group of individuals.

Types of Scheduled Commercial Banks

 Public Sector Banks

These are banks where majority stake is held by the Government of India.
Examples of public sector banks are: SBI, Bank of India, Canara Bank, etc.

 Private Sector Banks

These are banks majority of share capital of the bank is held by private individuals. These
banks are registered as companies with limited liability. Examples of private sector banks are:
ICICI Bank, Axis bank, HDFC, etc.

 Foreign Banks
These banks are registered and have their headquarters in a foreign country but operate their
branches in our country. Examples of foreign banks in India are: HSBC, Citibank, Standard
Chartered Bank, etc.

 Regional Rural Banks

Regional Rural Banks were established under the provisions of an Ordinance
promulgated on the 26th September 1975 and the RRB Act, 1976 with an objective to ensure
sufficient institutional credit for agriculture and other rural sectors. The area of operation of
RRBs is limited to the area as notified by GoI covering one or more districts in the State.
 RRBs are jointly owned by GoI, the concerned State Government and Sponsor Banks (27
scheduled commercial banks and one State Cooperative Bank); the issued capital of a RRB is
shared by the owners in the proportion of 50%, 15% and 35% respectively.

Type of Major Shareholders Major Players

Commercial
Banks

Public Sector Government of India SBI, PNB, Canara Bank, Bank

Banks of Baroda, Bank of India, etc

Private Sector Private Individuals ICICI Bank, HDFC Bank, Axis

Banks Bank, Kotak Mahindra Bank,
Yes Bank etc.

Foreign Banks Foreign Entity Standard Chartered Bank, City

Bank, HSBC, Deutsche Bank,
BNP Paribas, etc.

Regional Rural Central Govt, Andhra Pradesh Grameena

Banks Concerned State Govt and Vikas Bank, Uttaranchal
Sponsor Bank in the ratio of Garmin Bank, Prathama Bank,
50 : 15 : 35 etc.

Cooperative Banks
A co-operative bank is a financial entity which belongs to its members, who are at the same time
the owners and the customers of their bank. Co-operative banks are often created by persons
belonging to the same local or professional community or sharing a common interest. Co-
operative banks generally provide their members with a wide range of banking and financial
services (loans, deposits, banking accounts, etc).
They provide limited banking products and are specialists in agriculture-related products.
Cooperative banks are the primary financiers of agricultural activities, some small-scale
industries and self-employed workers.
Co-operative banks function on the basis of “no-profit no-loss”.
The co-operative banking structure in India is divided into following main 5 categories:
 State Cooperative Bank:
 There is a main cooperative bank in every state that runs and lends money all the central

cooperative banks in that state.

 Urban Cooperative Bank:

These banks operate in urban areas and accept deposits from the public and also advance

loans to them .Supervised by the RBI and managed by the State governments.

1.6 FUNCTIONS OF BANKS:

The functions of banks are briefly highlighted in following Diagram or Chart.

A. Primary Functions of Banks:

The primary functions of a bank are also known as banking functions. They are the main
functions of a bank.
These primary functions of banks are explained below.

1. Accepting Deposits
The bank collects deposits from the public. These deposits can be of different types, such as:-
 a. Saving Deposits
This type of deposits encourages saving habit among the public. The rate of interest is low. At
present it is about 4% p.a. Withdrawals of deposits are allowed subject to certain restrictions.
This account is suitable to salary and wage earners. This account can be opened in single name
or in joint names.
b. Fixed Deposits
Lump sum amount is deposited at one time for a specific period. Higher rate of interest is paid,
which varies with the period of deposit. Withdrawals are not allowed before the expiry of the
period. Those who have surplus funds go for fixed deposit.
c. Current Deposits
This type of account is operated by businessmen. Withdrawals are freely allowed. No interest is
paid. In fact, there are service charges. The account holders can get the benefit of overdraft
facility.
d. Recurring Deposits
This type of account is operated by salaried persons and petty traders. A certain sum of money is
periodically deposited into the bank. Withdrawals are permitted only after the expiry of certain
period. A higher rate of interest is paid.

2. Granting of Loans and Advances

The bank advances loans to the business community and other members of the public. The rate
charged is higher than what it pays on deposits. The difference in the interest rates (lending rate
and the deposit rate) is its profit.
The types of bank loans and advances are:-

a. Overdraft
This type of advances is given to current account holders. No separate account is maintained. All
entries are made in the current account. A certain amount is sanctioned as overdrafts which can
be withdrawn within a certain period of time say three months or so. Interest is charged on actual
amount withdrawn. An overdraft facility is granted against a collateral security. It is sanctioned
to businessman and firms.
b. Cash Credits
The client is allowed cash credit up to a specific limit fixed in advance. It can be given to current
account holders as well as to others who do not have an account with bank. Separate cash credit
account is maintained. Interest is charged on the amount withdrawn in excess of limit. The cash
credit is given against the security of tangible assets and / or guarantees. The advance is given for
a longer period and a larger amount of loan is sanctioned than that of overdraft.
c. Loans
It is normally for short term say a period of one year or medium term say a period of five years.
Now-a-days, banks do lend money for long term. Repayment of money can be in the form of
installments spread over a period of time or in a lump sum amount. Interest is charged on the
actual amount sanctioned, whether withdrawn or not. The rate of interest may be slightly lower
than what is charged on overdrafts and cash credits. Loans are normally secured against
tangible assets of the company.
d. Discounting of Bill of Exchange
The bank can advance money by discounting or by purchasing bills of exchange both domestic
and foreign bills. The bank pays the bill amount to the drawer or the beneficiary of the bill by
deducting usual discount charges. On maturity, the bill is presented to the drawee or acceptor of
the bill and the amount is collected.

B. Secondary Functions of Banks:

The bank performs a number of secondary functions, also called as non-banking functions.
These important secondary functions of banks are explained below.

1. Agency Functions
The bank acts as an agent of its customers. The bank performs a number of agency functions
which includes:-

a. Transfer of Funds
The bank transfer funds from one branch to another or from one place to another.
b. Collection of Cheques
The bank collects the money of the cheques through clearing section of its customers. The bank
also collects money of the bills of exchange.
c. Periodic Payments
On standing instructions of the client, the bank makes periodic payments in respect of electricity
bills, rent, etc.
d. Portfolio Management
The bank also undertakes to purchase and sell the shares and debentures on behalf of the clients
and accordingly debits or credits the account. This facility is called portfolio management.
e. Periodic Collections
The bank collects salary, pension, dividend and such other periodic collections on behalf of the
client.
f. Other Agency Functions
They act as trustees, executors, advisers and administrators on behalf of its clients. They act as
representatives of clients to deal with other banks and institutions.

2. General Utility Functions

The bank also performs general utility functions, such as:-

a. Issue of Drafts and Letter of Credits

Banks issue drafts for transferring money from one place to another. It also issues letter of credit,
especially in case of, import trade. It also issues travelers cheques.
b. Locker Facility
The bank provides a locker facility for the safe custody of valuable documents, gold ornaments
and other valuables.
c. Underwriting of Shares
The bank underwrites shares and debentures through its merchant banking division.
d. Dealing in Foreign Exchange
The commercial banks are allowed by RBI to deal in foreign exchange.
e. Project Reports
The bank may also undertake to prepare project reports on behalf of its clients.
f. Social Welfare Programmers
It undertakes social welfare programmers, such as adult literacy programmers, public welfare
campaigns, etc.
g. Other Utility Functions
It acts as a referee to financial standing of customers. It collects creditworthiness information
about clients of its customers. It provides market information to its customers, etc. It provides
travelers’ cheque facility.

1.7 OBJECTIVE OF THE PROJECT:

 To gain the knowledge of product and service of Axis bank Ltd. And to compare it vis-vis
other banks.
 To identify the perception of consumer about their banks with comparison to other banks.
 Recommendations to increase customer satisfaction level.

Because of the following reasons, I prefer this project work to get the knowledge of the
banking system.

 Banking is an essential industry.

 It is where we often wind up when we are seeking a problem in financial crisis and money
related query.

 Banking is one of the most regulated businesses in the world.

 Banks remain important source for career opportunity for people.

 It is vital system for developing economy for the nation.

 Banks can play a dynamic role in delivery and purchase of consumer durables.

NATIONALIZED BANKS IN INDIA:

Banking system in India is dominated by nationalized banks. The nationalization of banks in
India took place in 1969 by Mrs. Indira Gandhi the prime minister. The major objective behind
nationalization was to spread banking infrastructure in rural areas and available cheap finance to
Indian framers. Fourteen banks were nationalized in 1969.
Before 1969, State of India (SBI) was only public sector bank in India. SBI was nationalized
in1955 under the SBI Act of 1955. The second phase of nationalization of Indian banks took
place in year 1980. Seven more banks were nationalized with deposits over 200 crores.

PRIVATE BANKS:
All the banks in India were earlier private banks. They were founded in the pre-independence era
to cater to the banking needs of the people. But after nationalization of banks in 1969 public
sector bank came to occupy dominant role in the banking structure. Private sector banking in
India received a fillip in 1994 when Reserve Bank of India encouraged setting up to private
banks as part of its policy of liberalization of the Indian Banking Industry. Housing Development
Finance Corporation Limited (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.
Private Banks have played a major role in the development of Indian banking industry. They
have made banking more efficient and customer friendly. In the process they have Private sector
banks out of complacency and forced them to become more competitive.

ROLE OF INDIAN ECONOMY:

Banking system plays a very significant role in the economy of a country. It is central to a
nation’s economy as it caters to the needs of credit for all the sections of the society. Money-
lending in one form or the other has evolved along with the history of mankind. Even in the
ancient times, there are references to the money-lenders, in the form
of sahukars and zamindars who lend money by mortgaging the land property of the borrowers.
Towards the beginning of the 20 century, with the onset of modern industry in our country, the
need for government-regulated banking system was felt. The British government began to pay
attention towards the need for an organized banking sector in the country and the Reserve Bank
of India was set up to regulate the formal banking sector in the country. Ever since they were
nationalized in 1969, banks have been playing a major role in the socio-economic life of the
country.
They have to act not only as purveyors of credit, but also as harbingers of social and economic
development through a variety of enterprises, many of which may tiny and yet capable of
generating productive energies.
India is not only the world’s largest independent democracy, but also an emerging economic
giant. Without a sound and effective banking system, no country can have a health economy. For
the past three decades, India’s banking system has several outstanding achievements to its credit.
It is no longer confined to only the metropolitans, but have reached even to the remote corners of
the country. This is one of the reasons of India’s growth process.
Agriculture in India has a significant history and it is demographically the broadest economic
sector and plays a significant role in the overall socio-economic fabric of India. Finance in
agriculture is an important as development of technologies. A dynamic and growing agricultural
sector needs adequate finance through banks to accelerate overall growth. Most of the credit-
related schemes of the government to uplift the poorer and the under-privileged sections have
been implemented through the banking sector. With the passing of the Reserve Bank of India Act
1934, there were improvements in agricultural credit. Earlier, the co-operative banks were the
main institutional agencies providing finance to agriculture.
But after nationalization of 14 major commercial banks, it was mandatory for them to provide
finance to agriculture as a priority sector. Thus, agricultural credit acquired multi-agency
dimension.
The government has allocated `10000 crore to the National Bank for Agriculture and Rural
Development (NABARD) for refinancing Regional Rural Banks (RRBs) to disburse short term
crop loans to small and marginal farmers. The short-term crop loans scheme offers credit to
farmers at 7 per cent interest rate. Besides, in order to reduce post-harvest losses, farmers are
eligible to get post-harvest loans up to six months at 4 per cent interest rate provided they keep
their produce in warehouses. The rural sector in a country like India can growth only if cheaper
credit is available to the farmers for their short-and medium-term loans. In addition, the farmers
get loans for purchase of electric motors with pump, tractors and other machinery, digging wells
or boring wells, purchase of dairy animals and for many other allied enterprises.
The Industrial Development Bank of India (IDBI) is the premier institution in India purveying
financial assistance to the industrial sector projects. It provides direct financial assistance to the
industrial concerns in the form of granting loans and advances, and purchasing or underwriting
the issues of stocks, bonds or debentures. The creation of the Development Assistance Fund is
the special of the IDBI. Apart from this, the IDBI even gives guidance to start a business.
In addition, banks also perform certain new age functions which could not be thought of a couple
of decades ago. Today, the banking sector is one of the biggest service sectors in India.
Availability of quality services is vital for the well-being of the economy. The various customer-
oriented products like internet banking, ATM services, telebanking and electronic payment have
lessened the workload of customers. The facility of internet banking enables a consumer to
access and operate his bank account without actually visiting the bank premises. The facility of
ATMs and credit/debit cards has revolutionized the choices available with the customers. Banks
also serve as alternative gateways for making payments on account of income-tax and online
payment of various bills like the telephone, electricity and tax. In the modern-day economy
where people have not time to make these payments by standing in queue, the services provided
by banks are commendable.
 CHAPTER-2

REVIEW OF LITERATURE
An overview of Indian Banking Sector Literature Review:-

Indian Banking Sector – An Overview

Through a huge number of banks, the system of Indian banking is expressed by
means of combined ownership. The sector of commercial banking consists of 33
foreign banks, 40 private sector banks, and 27 public sector banks where majority
ownership is included by the government. In 2003-04, whole assets of bank add up
to a small amount exceeding 70 percent of GDP (Gross Domestic Product). In
2003-04, while the foreign and private banks apprehend 25 percent, the public
sector banks comprise of about 75 of the banking system assets. Through contrast,
the share of the public sector banks of entire banking system assets has been a little
above 90 percent, during the year 1991. In the year 1992, in prior to the
introduction of financial sector development, the government sector in each and
every sphere of economic action has a principal role, and towards the requirements
of development which is planned the system of Indian financial has effectively
accommodated.
The rule for an administered interest rate has been resulted in financial
intermediation of low-quality and high-cost, and the preemption of a huge amount
of bank deposits result in the form of reserves. The existence of the interest rates
structure that has been found difficult and it is taking place from the concerns of
both social and economic, regarding the supply of acknowledgment credit towards
definite sectors which resulted in cross subsidization, where the larger rates
stimulating to non-concessional borrowers were involved. On deposits and lending,
through specified regulatory instructions, the administered interest rates system
was distinguished which in further leads to interest rates in large quantity.
Therefore, among the commercial banks lending rates and deposits rates the
spreads have been increased, and in the credit risk the administered lending rates
does not make any issue. During the banking system operations, the lack of
prudential norms, accountability, and transparency also results in the expanding of
non-performing assets trouble. The bank’s functional autonomy and operational
independence has been confined by the inflexibility in management structures and
licensing of branches which has increased the overhead costs on the expenditure
front.
During this period, the financial environment by means of underdeveloped and
segmented financial markets was distinguished. Therefore, this has resulted in the
incompetent allocation of scarce resources and distortion of interest rates.  In
relation to exposure norms, provisioning, asset classification, income recognition,
and capital adequacy, the execution of prudential norms has been found. The
economy of world has also observed most important variations like ‘corresponding
with the movement towards financial services and global iteration’, even though
these reforms were employed.
For the purpose of present reform process, on banking sector reforms a second
government-appointed committee has provided the blueprint, against such
conditions.
During the reform period, the noteworthy and critical reforms in the financial
system have incorporated the following: 
 Permitting the banks to select their lending rates and deposit, by liberalizing
the interest rate rule.
 Establishing micro-prudential measures like income recognition,
provisioning norms for loans, accounting norms, capital adequacy requirements,
asset classification, and exposure norms.
 Authorizing higher disclosure to make sure of larger transparency in the
balance sheets.
  Introducing competition by allowing the establishment of new foreign
banks and also permitting more liberal entry of foreign banks.
 Assuming a consultative method so as to originate policy through measures
that are being ushered by the participants of market to supply lead time useful
to the market players in order to create required adjustments.
 Reducing the statutory reserve necessities to the present levels of 25 for
statutory liquidity ratios and 5 percent for cash ratios.
 Expanding the public sector banks ownership in order to increase their
capital up to 49 percent from the market by means of enabling the state-owned
banks. Since the end of March 2004, seventeen state-owned banks has increased
about 82 billion rupees and accessed the capital market. 
            As a result of the reforms, in the system of banking the share of entire
assets of public sector banks was decreased to 75 percent from 90 percent between
the year 1991 and 2004. The concentration ratio of five-bank asset has turned
down to 0.43 in 2003-04 and to 0.44 in 1995-96, from 0.51 percent in the year
1991-92. Still it showed a turn down to 0.41 percent in 2003-04 and 0.48 in 1995-
96, from 0.68 in the year 1991-92.

  
Table:

Year/bank                       1990-1996-97 2003-04

group* 91
SOB Pvt. Forgn. SOB Pvt. Forgn. SOB Pvt. Forgn.
No. of28 25 23 27 34 42 27 30 33
banks
Total assets 2929 119 154 5563 606 561 14714 3673 1363
Total 2087 94 85 4493 498 373 12268 2685 798
deposits
Total credit 1306 50 51 2202 281 265 6327 1709 605
Credit- 63 52 60 49 56 71 52 64 76
deposit
ratio (%)
Share                  
(percent)
Total assets 92 4 4 83 9 8 75 19 6
Total 92 4 4 84 9 7 74 16 10
deposits
Total credit 93 4 3 80 10 10 73 20 7
Total 246 11 15 536 74 76 1376 332 130
income
of which:239 9 13 465 64 62 1095 255 90
interest
income
Total 241 11 13 540 61 56 1211 297 108
expenditure
Of which:183 6 9 309 31.7 32 657 175 43
interest
expenses
Net profit 5 0.3 2 71 13 20 165 35 22
 *SOB- State-owned Banks; Pvt-Private Sector banks; Forgn- Foreign Banks
                   In the private sector, the new banks entry diminished the concentration
of asset which further might have made the competition stronger. The basic idea is
that efficiency is improved through competition. However, this may not true
always. One argument is that the excessive risk-taking may be directed by means
of increased competition. To achieve economies of scope and scale in order that
the concentration increased may directs to the improvements of efficiency, an
argument was made by others that consolidation or concentration is required. 
In the system of Indian banking, the degree of competition is estimated. In India,
the banking sector was made as an interesting case study by several factors. At
first, through the objective of profitability, productivity, and enhancing efficiency,
India experience liberalization of the banking sector, during the 1990s. Secondly,
the banking sector experience a significant transformation that is being driven by
the requirement for making a competitive economy, productive, and market-driven
so as to maintain accentuate growth and larger investment levels.
Thirdly, in markets that are emerging the studies of competition relate to countries
through a subsequent consolidation and history of banking crises. Concentration
enlarged because of consolidation, and the tested studies in these countries,
whether this resulted in increase in the power of institutions or increase in the
competition. It is quiet fascinating to observe in the Indian context, whether
penetration of foreign and private banks and diversification of public sector banks
consists of any impact on competition.

1. Islamic Banking Sustainability: A Review of Literature and

Directions for Future Research

Sirajo Aliyo, M. Kabir Hassan, Rosylin Mohd Yusof & Nasri Naiimi

Pages 440-470 | Accepted author version posted online: 20 Dec 2016, Published online: 20 Dec 2016
Abstract
This study reviews literature on the Islamic banking sustainability and presents
directions for future research. The article discourses scholars’ and practitioners’
views on the two perspectives of sustainability in relation to the objectives of
Islamic banking and finance. That there are limited studies on Islamic banking
sustainability is one of the major issues presented in the article. The study
highlights essential issues on the sustainability without in-depth empirical analysis.
The needs for long-term economic, social, and environmental sustainability are not
a compromising issue. Therefore, Islamic banks must strike a balance between the
institutional, societal, and environmental sustainability in order to achieve the
objective of Sharia.
KEY WORDS: Islamic banking, literature review, sustainability.

2. A Review of Literature on Performance of Regional Rural Banks

in India
M. Shankar, Dr. K Srinivasa Rao
Abstract
Regional Rural Banks (RRBs) in India were established to promote economic
development in rural areas. Many RRBs were established in various states to
enhance the economic wellbeing of the rural population. In this research paper, an
attempt is made to present the analysis of the performance of Regional Rural
Banks (RRBs) in Telangana State. This assumes significance since Telangana was
the newest state formed in India on 2nd June, 2014. The paper presents a summary
of various studies conducted on the performance of RRBs at the national level and
also at various state levels. Very few studies were earlier reported in the context of
Telangana state which provides an opportunity to investigate the performance of
RRBs in Telangana state. The findings of this research highlight the performance
of Telangana Grameena Bank. The findings of this research will help future
researchers working on the performance of RRBs in India.

3. New market Entry Strategies: Public & Private sector Banks in

India
Source: SCMS Journal of Indian Management. Jan-Mar2017, Vol. 14 Issue 1, p123-134. 12p.

Author(s): Singh, Dilpreet; Singh, Harpreet; Sandhu, Namrata

Abstract
All organizations, including banks strive to extend the ambit of their operations.
Towards this end, they further reach out to existing customers or make efforts to
tap untapped niches. Given this backdrop, the present study attempts to establish
the preferred new market entry strategies of public and private sector Indian banks.
It also seeks to examine if there is a significant difference between the new market
entry strategies adopted by both categories of banks. Data for the study was
collected from 364 bank officials employed with 21 public sector and 12 private
sector banks. The respondents of the study occupied at top/middle level positions
in banks and were involved in the development/execution of bank strategies. The
study established the preferred new market entry strategies adopted by public and
private sector banks. It also revealed that private sector banks give more
importance to new market entry than public sector banks.

4. A Study on Employee Retention in Private sector Banks

Source: ITIHAS - The Journal of Indian Management. Apr-Jun2016, Vol. 6 Issue 2, p82-89. 8p.
Author(s): Vivek, Sathu; Satyanarayana Rao, A. V.
Abstract
Employee retention refers to the ability of an organization to retain its employees.
Each research investigation is expected to make a definitive contribution to the
existing literature. The contribution of this study would be providing some gap-
filling information in the field of Employees attrition and retention in service
industry in general and Private Banks in particular. Satisfaction of employees is a
major problem and due to this reason service sector have high switching level of
jobs. Though, companies are investing a lot on the HR practices to improve
attrition rate it is suggested to think from the point of view of the employees.
Retaining valuable employees is one of the biggest problem that plague
organizations in the competitive marketplace. Employee retention has become the
latest buzzword of the corporate world. Each and every department of the
organization worldwide faces unabated levels of Attrition. This research provides
some suggestions and recommendations which will improve the attrition rate of the
employees of the Private Banks. The information of this research will be useful to
service industry in their HR practices and add new information to literature.
5. Assessing the Impact of Stress on the Work Life of Bank
Employees- A Case study of Meerut Region
Source: ITIHAS - The Journal of Indian Management. Jan/Mar2017, Vol. 7 Issue 1, p13-18. 6p.

Author(s): Garg, Preeti; Yajurvedi, Neha

Abstract
Banking Industry has become highly competitive sector in India and has been
facing greater challenges of technological revolution and global banking system.
Stress is unavoidable on the part of employees as the systems, procedures, and
techniques are getting complicated with the use of advance technology. Stress
Management is getting more and more attention now-a-days, particularly in the
banking sectors. The job nature of bank employees is very tedious as it involves
the direct customer interaction at all levels. The present paper seeks to comprehend
the working framework with respect to various factors, like long working hours,
improper reward system, lack of job autonomy, organizational culture, role conflict
etc. and the main reason is lack of management support to employees which results
in imbalance in their work life. The study is based on qualitative as well as
quantitative research methods for designing research propositions. The study was
conducted to know the factors causing the stress and its impact on the work life of
the employees. A convenient sample of 150 bank employees from HDFC, ICICI
and AXIS Bank was collected for the study. The study revealed that preventive
steps should be taken up by the banks to make their employees free from stress; to
perform their work with optimum efficiency and effectiveness. However, with the
help of proper management techniques, the bankers stress level can be reduced to
great extent.

6. Design of an off-axis visual display based on a free-form

projection screen to realize stereo vision

Author(s): Yuanming Zhao, Qingfeng Cui, Mingxu Piao & Lidong Zhao

Source: Pages 2066-2073 | received 13 Sep 2016, Accepted 25 May 2017, Published online: 07 Jun 2017
Abstract
A free-form projection screen is designed for an off-axis visual display, which
shows great potential in applications such as flight training for providing both
accommodation and convergence cues for pilots. The method based on point cloud
is proposed for the design of the free-form surface, and the design of the point
cloud is controlled by a program written in the macro-language. In the visual
display based on the free-form projection screen, when the error of the screen
along Z-axis is 1 mm, the error of visual distance at each filed is less than 1%. And
the resolution of the design for full field is better than 1′, which meet the
requirement of resolution for human eyes.
KEYWORDS: Optical design, visual display, free-form surface, vision-binocular
and stereopsis

7. Deposit mobilization of Andhra Pragathi Grameena Bank in

Andhra Pradesh: an empirical study
Source: CLEAR International Journal of Research in Commerce & Management. Jan2017, Vol. 8 Issue
1, p12-17. 6p.

Author(s): LAKSHMI, V. REDDY; REDDY, P. MOHAN

Abstract
Deposit is an important element determining the development of the bank.
Deposits are the reserves of the people with the bank. Mobilisation of deposits
promotes social wellbeing of the depositors as also the public at large by instilling
in them the habit of savings. The present study is an empirical analysis on deposit
mobilization of Andhra Pragathi Grameena Bank. The study is mainly based on
secondary data which is collected from the annual reports of APGB. Data were
processed by using simple statistics like mean, standard deviation, coefficient of
variation compound growth rate and t tests. The study concludes that there is a
rapid progress in the mobilization of deposits by APGB.
8. The influence of monetary policy on bank profitability
Author(s): Claudio borio, Leonardo Gambacorta, Boris Hofmann
First published: March 2017
DOI: 10.1111/infi.12104
Cited by (CrossRef): 1 article

Abstract
This paper investigates how monetary policy affects bank profitability. We use
data for 109 large international banks headquartered in 14 major advanced
economies for the period 1995–2012. Overall, we find a positive relationship
between the level of short-term rates and the slope of the yield curve (the ‘interest
rate structure’, for short), on the one hand, and bank profitability – return on assets
– on the other. This suggests that the positive impact of the interest rate structure
on net interest income dominates the negative one on loan loss provisions and on
non-interest income. We also find that the effect is stronger when the interest rate
level is lower and the slope less steep, that is, when non-linearities are present. All
this suggests that, over time, unusually low interest rates and an unusually flat term
structure erode bank profitability.
 CHAPTER- 3

PROFILE OF THE BANK

 Axis Bank Limited

TYPE: Private sector bank

TRADES AS: BSE: 532215

LSE: AXBC
NSC: AXISBANK

INDUSTRY: Banking, Financial services

FOUNDATION: 1993 (as UTI Bank)

HEADQUARTERS: Mumbai, Maharashtra, India

KEY PEOPLE: Shikha Sharma (MD &CEO) Sanjiv Mishra (Chairman)

PRODUCTS: Credit cards, consumer banking, corporate banking,

Finance and insurance, Investing banking, mortgage loans,
Private banking, private equity, Wealth management.

REVENUE: ₹414.0925 billion (US$6.5 billion) (2016)

NET INCOME: ₹83.5759 billion (US$1.3 billion) (2016)

TOTAL ASSESTS: ₹5.25468 trillion (US$82 billion) (2016)

TOTAL EQUITY: ₹4.7657 billion (US$74 million)

NUMBER OF
EMPLOYEES: 56,086 (March 2016)
 COMPANY PROFILE: AXIS
BANK

Axis Bank Ltd is the third largest of the private-sector banks in India offering a

comprehensive suite of financial products. The bank has its head office
in Mumbai and Registered office in Ahmedabad. It has 3300 branches, 14,003
ATMs, and nine international offices. The bank employs over 50,000 people and
had a market capitalization of ₹1.0583 trillion (US$17 billion) (as on March 31,
2016). It offers the entire spectrum of financial services large and mid-size
corporates, SME, and retail businesses
As of 30 Jun. 2016, 30.81% shares are owned by promoters & promoter group
(United India Insurance Company Limited, Oriental Insurance Company
Limited, National Insurance Company Limited, New India Assurance Company
Ltd, GIC, LIC & UTI) Remaining 69.19% shares are owned by Mutual Funds
Institutions, FIIs, Financial Institutions (banks), Insurance companies, corporate
bodies & individual investors among others.
UTI Bank opened its registered office in Ahmedabad and corporate office
in Mumbai in December 1993.  The first branch was inaugurated on 2 April 1994
in Ahmedabad by Dr. Manmohan Singh the Finance Minister of India. UTI Bank
began its operations in 1993, after the Government of India allowed new private
banks to be established. The Bank was promoted in 1993 jointly by the
Administrator of the Unit Trust of India (UTI-I), Life Insurance Corporation of
India (LIC), General Insurance Corporation, National Insurance Company, The
New India Assurance Company, The Oriental Insurance Corporation and United
India Insurance Company.
In 2001 UTI Bank agreed to merge with and amalgamate Global Trust Bank, but
the Reserve Bank of India (RBI) withheld approval and nothing came of this. In
2004 the RBI put Global Trust into moratorium and supervised its merger
into Oriental Bank of Commerce.
In 2003 Axis Bank became the first Indian bank to launch the travel currency card.
In 2005, Axis Bank got listed on London Stock Exchange.
UTI Bank opened its first overseas branch in 2006 Singapore. That same year it
opened a representative office in Shanghai, China. UTI Bank opened a branch in
the Dubai International Financial Centre in 2007. That same year it began branch
operations in Hong Kong. In 2008 it opened a representative office in Dubai.
Axis Bank opened a branch in Colombo in October 2011, as a Licensed
Commercial Bank supervised by the Central Bank of Sri Lanka. Also in 2011, Axis
Bank opened a representative office in Abu Dhabi. In 2011, Axis bank inaugurated
Axis House, its new corporate office in Worli, Mumbai.
In 2013, Axis Bank's subsidiary, Axis Bank UK commenced banking operations.
Axis Bank UK has a branch in London.
Deepika Padukone, a Mumbai Film Industry ( Bollywood) actress is the brand
ambassador of Axis Bank.
In 2015, Axis Bank opens its representative office in Dhaka.
The bank has over 50,000 employees (as of 31 March 2016). The bank
incurred ₹26.7 billion (US$420 million) on employee benefits during the FY
2012–13. The average age of an Axis Bank employee is 29 years. The attrition
rate in Axis Bank is approx. 9% per year.

EVOLUTION
Unit Trust of India is a financial organisation in INDIA, which was created by the
UTI Act passed by the Parliament of India on 30 December 1963 under the
direction of Col. Akash Behl. He had fought very hard and intensely to get this
organisation come into reality. For more than two decades it remained the sole
vehicle for investment in the capital market by the Indian citizens. In mid- 1980s
public sector banks were allowed to open mutual funds. The real vibrancy and
competition in the MF industry came with the setting up of the Regulator SEBI and
its laying down the MF Regulations in 1993.UTI maintained its pre-eminent place
till 2001, when a massive decline in the market indices and negative investor
sentiments after the Ketan Parekh scam created doubts about the capacity of UTI to
meet its obligations to the investors. As of 2010, UTI has 10 million investors.
UTI Mutual Fund was created as a SEBI registered fund like any other mutual
fund. The assets and liabilities of schemes where Government had to come out
with a bail-out package were taken over directly by the Government in a new
entity called Specified Undertaking of UTI, SUUTI. SUUTI still holds around
11.66 percent stake in Axis Bank, 11.77 percent in ITC and 8.18 percent in L&T.
UTI Mutual Fund is promoted by the four of the largest Public Sector Financial
Institutions as sponsors, viz., State Bank of India, Life Insurance Corporation of
India, Bank of Baroda and Punjab National Bank with each of them presently
holding an 18.5% stake in the paid up capital of UTI AMC. The UTI Asset
Management Company has its registered office at: UTI Tower, Gn Block,
Bandra — Kurla Complex, Bandra (East), Mumbai – 400 051.It has over 70
schemes in domestic MF space and has the largest investor base of over 9 million
in the whole industry. It is present in over 450 districts of the country and has 150
branches called UTI Financial Centres or UFCs. About 50% of the total IFAs in
the industry work for UTI in distributing its products! India Posts, PSU Banks and
all the large Private and Foreign Banks have started distributing UTI products. The
total average Assets under Management (AUM) for the month of June 2008 was
Rs. 530 billion and it ranked fourth. In terms of equity AUM it ranked second and
in terms of Equity and Balanced Schemes AUM put together it ranked FIRST in
the industry. This measure indicates its revenue- earning capacity and its financial
strength.
Besides running domestic MF Schemes UTI AMC is also a registered portfolio
manager under the SEBI (Portfolio Managers) Regulations. It runs different
portfolios for its HNI and Institutional clients. It is also running a Sharia Compliant
portfolio for its offshore clients. UTI tied up with Shinsei Bank of Japan to run a
large size India-centric portfolio for Japanese investors.
For its international operations UTI has set up its 100% subsidiary, UTI
International Limited, registered in Guernsey, Channel Islands. It has branches in
London, Dubai and Bahrain. It has set up a Joint Venture with Shinsei Bank in
Singapore. The JV has got its license and has started its operations.

OPERATIONS
Indian Business
As of 12 Aug 2016, the bank had a network of 3,120 branches and extension
counters and 12,922 ATMs.  Axis Bank has the largest ATM network among
private banks in India and it operates an ATM at one of the world’s highest sites at
Thegu, Sikkim at a height of 4,023 meters (13,200 ft) above sea level.
International Business
The Bank has nine international offices with branches at Singapore, Hong Kong,
Dubai (at the DIFC), Shanghai, Colombo and representative offices at Dhaka,
Dubai and Abu Dhabi, which focus on corporate lending, trade finance,
syndication, investment banking and liability businesses. 

SERVICES
Retail Banking
In the retail banking category, the bank offers services such as lending to
individuals/small businesses subject to the orientation, product and granularity
criterion, along with liability products, card services, Internet banking, automated
teller machines (ATM) services, depository, financial advisory services, and Non-
resident Indian (NRI) services. Axis bank is a participant in RBI's NEFT enabled
participating banks list.
Corporate Banking
Credit: The Bank offers various loan and fee-based products and services to Large
and Mid-corporate customers and Small and Medium Enterprise (SME)
businesses. These products and services include cash credit facilities, demand and
short-term loans, project finance, export credit, factoring, channel financing,
structured products, discounting of bills, documentary credits, guarantees, foreign
exchange and derivative products. Liability products including current accounts,
certificates and deposits and time deposits are also offered to large and mid-
corporate segments.
Transaction Banking: Formed in April 2015, TxB provides integrated products
and services to customers in areas of current accounts, cash management services,
capital market services, trade, foreign exchange and derivatives, cross-border trade
and correspondent banking services and tax collections on behalf of the
Government and various State Governments in India.
Treasury: The Treasury manages the funding position of the Bank and also
manages and maintains its regulatory reserve requirements. It invests in sovereign
and corporate debt instruments and engages in proprietary trading in equity and
fixed income securities, foreign exchange, currency futures and options. It also
invests in commercial papers, mutual funds and floating rate instruments as part of
the management of short-term surplus liquidity. In addition, it also offers a wide
range of treasury products and services to corporate customers.
Syndication:
The Bank also provides services of placement and syndication in the form of local
currency bonds, rupee and foreign term loans and external commercial borrowings.
International Banking
The Bank continues to offer corporate banking, trade finance, treasury and risk
management solutions through the branches at Singapore, Hong Kong, DIFC,
Shanghai and Colombo, and also retail liability products from its branches at Hong
Kong and Colombo. The representative office at Dhaka was inaugurated during the
current financial year. Through the Representative Office at Dhaka.
SUBSIDIARIES:
The Bank has ten wholly owned subsidiaries:
  Axis Capital Ltd.
 Axis Private Equity Ltd.
 Axis Trustee Services Ltd.
 Axis Asset Management Company Ltd.
 Axis Mutual Fund Trustee Ltd.
 Axis Bank UK Ltd.
 Axis Securities Ltd.
 Axis Direct
 Axis Finance Ltd.
 Axis Securities Europe Ltd.
 Axis Trends Limited

PROMOTERS
Axis Bank Ltd. has been promoted by the largest and the best financial institution
of the country, UTI. The Bank was set up with a capital of Rs.115 crore, LIC –
Rs.7.5 crore and GIC and its four subsidiaries contributing Rs.1.5 crore each.
SUUTTI- Shareholding 11.56%.

FINANCIAL INCLUSION
“Financial Inclusion – Delivery of Financial Services in a convenient manner and
at an affordable cost to vast sections of disadvantaged and low income group
population”.
A, B, C of Financial Inclusion: Advice, Banking & Credit. There are 4 pillars of
Financial Inclusion: Savings, Credit, Remittances and Micro Insurance/ Micro
SIP/Micro.
With an aim to provide banking services in those tribal and remote areas of the
country which are still deprived of banking services, Axis Bank Ltd has launched
its Financial Inclusion (FI) programme in 29 tribal villages of Nashik district
through the rollout of its No Frills ‘Azadi’ accounts.
The bank has tied up with seven rural co-operative credit societies as Business
Correspondents (BCs) which will facilitate in customer enrolments and act as
service centres to facilitate cash in/cash out transactions. The account-holders will
be provided with bank issued VISA Debit cards that can be used at any Visa
designated ATMs and merchant outlets.

BOARD OF DIRECTORS
The members of board are

Sr.No Name Designation

1 Dr.Sanjiv Misra Chairman

2 Mrs.Shikha Sharma Managing Director & CEO

3 Mr.V Srinivasan Deputy Managing Director

4 Mr.Rajesh Dahiya Executive Director

5 Mr.Rajiv Anand Executive Director

6 Mr.V R Kaundinya Director

7 Mr.Prasad R Menon Director

8 Prof.Samir K Barua Director

9 Mr.Som Mittal Director

10 Mr.Rohit Bhagat Director

11 Mrs.Usha Sangwan Director

12 Mr.S Vishvanathan Director

13 Mr.Rakesh Makhija Director

14 Mrs.Ketaki Bhagwati Director

15 Mr.B Babu Rao Director

Shareholding Pattern - Axis Bank Ltd.

Holder's Name No of Shares % Share Holding

Promoters 688802073 28.76%

Foreign Institutions 1155457305 48.24%

NBanksMutualFunds 162854328 6.8%

General Public 154975421 6.47%

Others 84818840 3.54%

Financial Institutions 39375067 1.64%

MISSION
Today, the Bank is India’s third largest private sector bank. It offers the entire
spectrum of financial services to customer segments, spanning large and mid-
corporates, SME, and retail businesses.
The Bank’s overseas operations are spread over nine international offices with
branches in Singapore, Hong Kong, Dubai, Colombo and Shanghai; representative
offices are located in Dhaka, Dubai, Abu Dhabi, along with an overseas subsidiary
in London, UK. The international offices focus on corporate lending, trade finance,
syndication and liability businesses.

VISSON
To be the preferred financial services provider excelling in customer service
delivery through insight, empowered employees and smart use of technology.

CORE VALUES
The core values that reflect across the policies and decisions of the Bank comprise:
 Customer Centricity
 Ethics
 Transparency
 Teamwork
  Ownership

KEY FACTS:-
EMPLOYEES
50,135
MARKET CAPITALISATION
 1, 05, 833(crore)
BALANCE SHEET SIZE
 5, 25,468(crore)
SAVINGS BANK ACCOUNTS
172(lakhs)
TIER - I CAPITAL ADEQUACY RATIO
12.51 %
CAPITAL ADEQUACY RATIO
15.29 %
PROPOSED DIVIDEND
250 %

FOOTPRINTS:-
ATMs
12,743
CASH RECYCLERS
1,146
INTERNATIONAL OFFICES
9
BRANCHES
2,904
SME CENTRES
51

MAJOR PLAYER IN THE BANKING INDUSTRY:-

 HDFC
HISTORY
HDFC Bank Limited is an Indian banking and financial services company
headquartered in Mumbai, Maharashtra. It has 84,325 employees and has a
presence in Bahrain, Hong Kong and Dubai. HDFC Bank is India’s largest private
sector lender by assets.It is the largest bank in India by market capitalization as of
February 2016. It was ranked 69th in 2016 BrandZ Top 100 Most Valuable Global
Brands. In 1994 HDFC Bank was incorporated, with its registered office
in Mumbai, India. Its first corporate office and a full service branch at Sandoz
House, Worli was inaugurated by the then Union Finance Minister, Manmohan
Singh.
As of June 30, 2017, the Bank’s distribution network was at 4,727 branches and
12,220 ATMs across 2,666 cities / towns.

PRODUCTS & SERVICES

HDFC Bank provides a number of products and services which includes wholesale
banking, Retail banking, Treasury, Auto (car) Loans, Two Wheeler
Loans, Personal loans, Loan against Property and Credit Cards.
The latest entry in the league is 'Project AI', under which HDFC Bank, over the
next few weeks, would deploy robots at select bank branches. These robots will
offer options such as cash withdrawal or deposit, forex, fixed deposits and demat
services displaying on the screen to persons coming into the branch.

BUSINESS SUMMARY
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 bank is committed to maintain the highest level of ethical standards,
professional integrity, corporate governance and regulatory compliance. HDFC
Bank’s business philosophy is based on five core values: Operational Excellence,
Customer Focus, Product Leadership, People and Sustainability.
The Bank has three primary business segments, namely banking, wholesale
banking and treasury. The retail banking segment serves retail customers through a
branch network and other delivery channels. This segment raises deposits from
customers and makes loans and provides other services with the help of specialist
product groups to such customers. The wholesale banking segment provides loans,
non-fund facilities and transaction services to corporate, public sector units,
government bodies, financial institutions and medium-scale enterprises. The
treasury segment includes net interest earnings on investments portfolio of the
Bank.
WHOLESALE BANKING SERVICES
The bank’s target market ranges from large, blue chip manufacturing companies in
the Indian corporate to small & mid-sized corporate and agri-based businesses. For
these customers, the Bank provides a wide range of commercial and transactional
banking services, including-
 Working capital finance.
 Trade services.
 Transactional services.
 Cash management.
RETAIL BANKING SERVICES
The objective of the retail banking is to provide its target market customers a full
range of financial products and banking services, giving the customer a one- stop
window for all his/her banking requirements. The products are backed by world-
class services and delivered to the customers through the growing branch
networks, as well as through alternate delivery channels like-
 ATMs.
 Phone banking.
 Net banking.
 Mobile Banking.
TREASURY
Within this business, the bank has three main products areas-
 Foreign Exchange & Derivatives.
 Local Currency Money Market & Debt Securities.
 Equities.
 ICICI
HISTORY
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI
Bank was reduced to 46% through a public offering of shares in India in fiscal
1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000,
ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation
in fiscal 2001, and secondary market sales by ICICI to institutional investors in
fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the
World Bank, the Government of India and representatives of Indian industry. The
principal objective was to create a development financial institution for providing
medium-term and long-term project financing to Indian businesses.
In the 1990s, ICICI transformed its business from a development financial
institution offering only project finance to a diversified financial services group
offering a wide variety of products and services, both directly and through a
number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the
first Indian company and the first bank or financial institution from non-Japan Asia
to be listed on the NYSE.

Performance Review: Quarter ended March 31, 2017.

 189% increase in standalone profit after tax from ₹ 702 crore (US$ 108
million) for the quarter ended March 31, 2016 (Q4-2016) to ₹ 2,025 crore
(US$ 312 million) for the quarter ended March 31, 2017 (Q4-2017)
 14% year-on-year growth in domestic advances; retail portfolio grew by
19% year-on-year and constituted 52% of the total portfolio at March 31,
2017
 28% year-on-year growth in current and savings account (CASA)
deposits; CASA ratio at 50.4% at March 31, 2017
 Standalone profit after tax of ₹ 9,801 crore (US$ 1.5 billion) for the year
ended March 31, 2017 (FY2017)
 Consolidated profit after tax of ₹ 2,083 crore (US$ 321 million) for Q4-
2017 and ₹ 10,188 crore (US$ 1.6 billion) for FY2017
 Total capital adequacy of 17.39% and Tier-1 capital adequacy of
14.36% on standalone basis at March 31, 2017
 The Board of Directors has recommended a dividend of ₹ 2.50 per
equity share of face value of ₹ 2.00 each (equivalent to dividend of US$ 0.08
per ADS) and an issue of bonus shares in the ratio of 1 equity share for every
10 equity shares
 
 
SUMMARY BALANCE SHEET
Quarterly 31- mar-16 31-Sep-16 31-Dec-2016 31-Mar-17
(Capital & liability) (Audited) (Audited) (Audited) (Audited)
Capital 1,163 1,164 1,164 1,165
Employees stock 7 7 6 6
option outstanding
Reserves and surplus 88,566 93,845 96,344 98,780
Deposits 421,426 449,071 465,284 490,039
Borrowings (includes 174,807 171,757 159,098 147,556
subordinated debt)

Other liabilities 34,726 36,096 35,901 34,245

Total Capital and 720,695 751,940 757,797 771,791

Liabilities

ASSETS
Cash and balances 27,106 23,959 26,194 31,702
with Reserve Bank of
India
Balances with banks 32,763 28,605 34,973 44,011
and money at call and
short notice
Investments 160,412 174,349 168,987 161,507
Advances 435,264 454,256 457,469 464,232
Fixed assets 7,577 7,608 7,551 7,805
Other assets 57,573 63,163 62,623 62,534
Total Assets 720,695 751,940 757,797 771,791
 SBI
HISTORY