banking industry
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TRANSCRIPT
BANKING INDUSTRY
Study by Maulik
What Is Bank?
A bank is an institution which accepts deposits, withdrawals by cheque and makes loans and advances.
INDUSTRY ANALYSIS
• Banking in India originated in the last decades of the 18th century
• The first banks were THE GENERAL BANK OF INDIA, which started in 1786
• The oldest bank in existence in India is the STATE BANK OF INDIA, which originated as the BANK OF CALCUTTA in June 1806
• The first fully Indian owned bank was the ALLAHABAD
BANK, established in 1865
• The banking industry has grown at a compounded annual rate
of over 51 per cent since April 2001
• Industry life cycle – Growing stage
Industry Analysis Cont…
Market structure in Indian
RBI
Scheduled
Commercial
Pu
blic
Private
Foreign
Urban
Rural
Unscheduled
MARKET STRUCTURE
Top 10 banks in the world
• Deutsche Bank, Germany• Mitsubishi UFJ Bank, Japan• Industrial & Commercial Bank of China• HSBC Holdings, UK• Barclays PLC, UK• BNP Paribas, France• Japan Post Bank• J. P. Morgan Chase & Co. USA• Credit Agricole SA, France• Royal Bank of Scotland Group(RBS)
Top 10 banks in IndiaPUBLIC SECTOR BANKS• State Bank of India(SBI)• Punjab National Bank• Bank of Baroda• Canara Bank• Bank of India
PRIVATE SECTOR BANKS• HDFC Bank• ICICI Bank• Axis Bank• Kotak Mahindra Bank• Yes Bank
Top Foreign Banks in India
• CITI Bank• Standard Chartered Bank• HSBC Bank • Royal Bank of Scotland• BNP Paribas
GROWTH RATE
• Private Bank 50%
• Public Sector Bank 15%
• Private Public Bank 35%
• Foreign Bank 20%
SBI PNB BOB ICICI BOI CANARA HDFC IDBI AXIS CBI0
1000
2000
3000
4000
5000
6000
7000
8000
7567
2421 2287 2164 2131 21251600 1571 1424 1297
CREDIT PORTFOLIO (RS.BN)
Domestic Credit (2002-11)
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY110
10
20
30
40
50
60
70
80
57.1 55.8 57.6 58.4 60.9 60.867.7 70.4 73 75.1
percentage of GDP
SBI PNB BOB ICICI BOI CANARA HDFC IDBI AXIS CBI0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
2.9
3.5
2.82.3 2.5 2.6
4.2
1.8
3.12.7
Net interest margin (%)
FY07 FY08 FY09 FY10 FY110.85
0.9
0.95
1
1.05
1.1
1.15
1.021
1.05
1.12
0.97
Non-performing asset (%)
FY08 FY09 FY10 FY110
10
20
30
40
50
60
70
80
90
10090
95 95 95
43 45 45 45
6570
7570
MONEY SUPPIY CREDIT
DEPOSITS
Benefits of financial inclusion(%
) of
GD
P
Market share of leading bank(2011)
18
6
5
5
5
54433
42
SBI
PNB
BOB
ICICI
BOI
CANARA
HDFC
IDBI
AXIS
CBI
OTHERS
Balance Sheet of State Bank of India ------------------- in Rs. Cr. -------------------
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
12 mths 12 mths 12 mths 12 mths 12 mths
Capital and Liabilities:
Total Share Capital 684.03 671.04 635.00 634.88 634.88 Equity Share Capital 684.03 671.04 635.00 634.88 634.88 Share Application Money 0.00 0.00 0.00 0.00 0.00 Preference Share Capital 0.00 0.00 0.00 0.00 0.00 Reserves 98,199.65 83,280.16 64,351.04 65,314.32 57,312.82 Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Net Worth 98,883.68 83,951.20 64,986.04 65,949.20 57,947.70
Deposits 1,202,739.57 1,043,647.36 933,932.81 804,116.23 742,073.13 Borrowings 169,182.71 127,005.57 119,568.96 103,011.60 53,713.68
Total Debt 1,371,922.28 1,170,652.93 1,053,501.77 907,127.83 795,786.81
Other Liabilities & Provisions 95,455.07 80,915.09 105,248.39 80,336.70 110,697.57
Total Liabilities 1,566,261.03 1,335,519.22 1,223,736.20 1,053,413.73 964,432.08
Mar '13 Mar '12 Mar '11 Mar '10 Mar '09
12 mths 12 mths 12 mths 12 mths 12 mths
Assets
Cash & Balances with RBI 65,830.41 54,075.94 94,395.50 61,290.87 55,546.17 Balance with Banks, Money at Call 48,989.75 43,087.23 28,478.65 34,892.98 48,857.63
Advances 1,045,616.55 867,578.89 756,719.45 631,914.15 542,503.20 Investments 350,927.27 312,197.61 295,600.57 285,790.07 275,953.96 Gross Block 6,595.71 5,133.87 4,764.19 11,831.63 10,403.06 Accumulated Depreciation 0.00 0.00 0.00 7,713.90 6,828.65 Net Block 6,595.71 5,133.87 4,764.19 4,117.73 3,574.41 Capital Work In Progress 409.31 332.68 0.00 295.18 263.44 Other Assets 47,892.03 53,113.02 43,777.85 35,112.76 37,733.27
Total Assets 1,566,261.03 1,335,519.24 1,223,736.21 1,053,413.74 964,432.08
Balance Sheet of HDFC Bank ------------------- in Rs. Cr. -------------------
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
12 mths 12 mths 12 mths 12 mths 12 mths
Capital and Liabilities:
Total Share Capital 479.81 475.88 469.34 465.23 457.74
Equity Share Capital 479.81 475.88 469.34 465.23 457.74
Share Application Money 0.00 0.00 0.30 2.91 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 42,998.82 35,738.26 29,455.04 24,911.13 21,064.75
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Net Worth 43,478.63 36,214.14 29,924.68 25,379.27 21,522.49
Deposits 367,337.48 296,246.98 246,706.45 208,586.41 167,404.44
Borrowings 39,438.99 33,006.60 23,846.51 14,394.06 12,915.69
Total Debt 406,776.47 329,253.58 270,552.96 222,980.47 180,320.13
Other Liabilities & Provisions 41,344.40 34,864.17 37,431.87 28,992.86 20,615.94
Total Liabilities 491,599.50 400,331.89 337,909.51 277,352.60 222,458.56
Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
12 mths 12 mths 12 mths 12 mths 12 mths
Assets Cash & Balances with RBI 25,345.63 14,627.40 14,991.09 25,100.82 15,483.28
Balance with Banks, Money at Call 14,238.01 12,652.77 5,946.63 4,568.02 14,459.11
Advances 303,000.27 239,720.64 195,420.03 159,982.67 125,830.59
Investments 120,951.07 111,613.60 97,482.91 70,929.37 58,607.62
Gross Block 2,939.92 2,703.08 2,347.19 2,170.65 4,707.97
Accumulated Depreciation 0.00 0.00 0.00 0.00 2,585.16
Net Block 2,939.92 2,703.08 2,347.19 2,170.65 2,122.81
Capital Work In Progress 0.00 0.00 0.00 0.00 0.00
Other Assets 25,124.60 19,014.41 21,721.64 14,601.08 5,955.15
Total Assets 491,599.50 400,331.90 337,909.49 277,352.61 222,458.56
Thank you