Business Opportunity for Yes Bank Ltd in FCRA.pptx

7/30/2019 Business Opportunity for Yes Bank Ltd in FCRA.pptx

1/20

Business Opportunity for Yes Bank Ltd in

Foreign Contribution Regulation Act

Accounts of Charitable InstitutionsGuidance Under: Supervision Under:Dr. Amit Gautam Mr. Ashish Bhatnagar

Asst. Professor Vice President

FMS,BHU Govt. Relationship Management

Yes Bank Ltd.

Submitted By

Ashutosh Dubey

12382MA011

MBA(IB)


2/20

Flow of Presentation

Industry Analysis

Company Analysis

Research Methodology

i) Objectives

ii) Research Design

iii) Sampling

iv) Data Collection

v) Data Analysis and interpretation Findings and Conclusions

Suggestions


3/20

Banking Industry

Bank of Hindustan (1770-1829) and The General Bank of

India-1786

Reserve Bank of India was established in 1935

Banking Regulation Act 1949 RBI to supervise and regulateall banking activities.

Nationalization of Banks (1969) 14 commercial banks were

nationalized.

Branch licensing Policy(1977)To Expand Reach to themasses.

No. of PSBs- 21


4/20

Continued....

No. Of private sector banks-18

Market share as on March 2013PSBs- 80 % & private banks 20 %.

SBI -19.1 % & 20 NBs - 60.6 %

NPBs (new private banks)- 15.8 %OPBs (old private banks)- 4.5 %.


5/20

Yes Bank Ltd.

Founded in November 2003 by Rana Kapoor and AshokKapoor with an Initial capital of $45 million

India's fourth largest private sector Bank

Is a full service commercial bank that offers Corporate

Banking, Investment Banking, and Personal

Banking servicesacross India.

The sustained growth of YES BANK is based on- Growth ,Trust,Technology, Human Capital & Responsible Banking.

Total Assets/Liabilities -99,104 crore

Total income for FY 2012-13 is Rs 9,551.43 crore

YES Bank has posted 33.2 per cent jump in net profit .

Net Interest Income improved by 42.4 %


6/20

FCRA 2010

FCRA, 2010 is an improvement over the FCRA

1976 as more stringent provisions have been

made in order to prevent misutilization of the

foreign contribution received by theassociations.

The basic purpose of FCRA 2010

The prime objective of the Act

The focus of the Act


7/20

SWOT ANALYSIS OF YES BANK LTD.

Growth opportunity in SME sector

Wide scope in rural India

Large retail and corporate market

High competitive Privatebanks

Other better investmentoptions available

Capital Market slowdown

Low brand awareness

Low market presence

Less promotional activity

Latecomer

India's fourth largestprivate sector Bank

competent topmanagement team

only Greenfield licenseawarded by the RBI in thelast 17 years

Strength Weakness

opportunityThreat


8/20

Research Methodology

RESEARCH OBJECTIVES

To search Business opportunities in FCRA accounts ofcharitable institutions and forming strategies to targetthis segment for the bank.

To make a comparative analysis of the Banking productoffered by the Banks in FCRA accounts to the charitableinstitutions.

To take an overview of the needs of the charitableinstitutions in banking industry.

To recommend a product in accordance to the rules ofFCRA 2010 and as per the guidelines of the RBI.


9/20

SAMPLE DESIGN

Research Type- Descriptive

Scope of the study- Charitable institutions of NCR region

Data Collection- Questionnaire & interview

Sampling Technique- Convenience Sampling Sampling size- 30

TYPE OF DATA COLLECTED

1. Primary-questionnaire.2. Secondary- MHA yearly Reports & website of MHA & YesBank Ltd.


10/20

Foreign receipt in the present year.

27%

73%

0%

No foreign receipt in present Foreign receipt in presentNever received foreign funds


11/20

Donor from which country.

55%27%

18%

Donor from all over the world except USA

Donor only from USA

Donor from USA & others


12/20

Dealing with which Bank for FCRA

accounts.

55%27%

18%

Account in Public Bank Account in Private Bank

Account in Foreign Bank


13/20

Investment advisory an important

value added.

55%27%

18%

Investment advisory required Own separate advisory body

Already getting


14/20

Auditing done by FCRA Department for

the organization.

82%

18%

No auditing by FCRA Auditing in Past


15/20

Response level of FCRA department.

0%

18%

82%

0%

Poor Average Good Excellent


16/20

Comparative Analysis

Consultancy servicesas extra benefits tothe account.

Special team for FCRAaccounts reportingregularly to centralgovernment and RBI.

Special care in case ofPrior permission

obtained byorganization fromcentral government.

HDFC Bank

Special teamtargeting NGOs for

FCRA accounts.

Compliance team atMumbai is reportingRBI and centralgovernment

Special care in case of

Prior permissionobtained byorganization fromcentral government

Yes Bank

No special team

International BankingDivision (IBD) is

contacting centralgovernment for FCRAaccounts MIS

Special care in case ofPrior permissionobtained by

organization fromcentral government.

Corporation Bank

16


17/20

Needs of the charitable institutions

Nominal foreign exchange conversion rates

Investment Advisory

Special Compliance Team for reporting toMHA

More Services like online remittance of

payments


18/20

Findings & Conclusion

FCRA product will be a good source of foreign funds for the bank

1120 FCRA accounts in year 2011- 12 had received 1557 crores in NCR.

About 73% of the total money received was FC

55% PSBs dont have special compliance teams reporting to MHA and RBI

18% of the NGOs are not satisfied by the services of their current banks

Some of the banks are charging very high amount for providing the service of

maintaining the FCRA Account.

Investment advisory is missed by more than half of the NGOs.

This sector of banking has posted a growth of 50% in terms of funds received

in form of FC and numbers of associations were growing at 10% per year.

Most of the NGOs are in search of specialized services from the bank in form of

advisory and reporting.


19/20

Suggestions

The product should have following features:

Special Compliance team

Relationship with FCRA department

Personalized Consultancy Services

Investment advisory

Assistance in the process of documentation and

obtaining necessary approvals from MHA

Marketing teams


20/20

THANK YOU

Business Opportunity for Yes Bank Ltd in FCRA.pptx

Documents

Transcript of Business Opportunity for Yes Bank Ltd in FCRA.pptx