Comparison Between Private & Public Sector Banks

HDFC BANK

INTRODUCTION:-

HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

MISSION:-

HDFC Bank's mission is to be a World-Class Indian Bank.

OBJECTIVES:-

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 four core values –

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Operational Excellence, Customer Focus, Product Leadership and People.

MANAGEMENT:-

Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr. Capoor was a Deputy Governor of the Reserve Bank of India. The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years, and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.

The Bank's Board of Directors is composed of eminent individuals with a wealth of experience in public policy, administration, industry and commercial banking. Senior executives representing HDFC are also on the Board.

Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.

SHAREHOLDING PATTERN:-

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NON-PROMOTERS’ HOLDINGS:-

SHAREHOLDING OF OTHERS:-

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UTI BANK

INTRODUCTION:-

UTI Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation Ltd. and its associates viz. National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United Insurance Company Ltd.

The Bank today is capitalized to the extent of Rs. 278.50 Crores with the public holding (other than promoters) at 72.26 %.

The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. Presently the Bank has a very wide network of more than 373 branch offices and Extension Counters. The Bank has a network of over 1737 ATMs providing 24hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country.

The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.

MISSION:-

Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele.

Continuous technology up gradation while maintaining human values. Progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices.

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CORE VALUES:-

Customer Satisfaction through o Providing quality service effectively and efficiently o Smile, it enhances your face value" is a service quality Stressed on. o Periodic Customer Service Audits

Maximization of Stakeholder value Success through Teamwork, Integrity and People

PROMOTERS:-

UTI 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, with UTI contributing Rs. 100 crore, LIC - Rs. 7.5 crore and GIC and its four subsidiaries contributing Rs. 1.5 crore each.

BOARD OF DIRECTORS:-

Dr. P. J. Nayak - Chairman & Managing DirectorShri Surendra Singh - DirectorShri N.C. Singhal - DirectorShri A.T. Pannir Selvam - DirectorShri J.R. Varma - DirectorDr. R. H. Patil - DirectorSmt. Rama Bijapurkar - DirectorShri R B L Vaish - DirectorShri S. Chatterjee - Executive Director (Whole Time)Shri S B Mathur - DirectorShri M V Subbiah - DirectorShri Ramesh Ramanathan - Director

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As on 30/9/2005 the Shareholding Pattern of UTI Bank is divided in mainly three parts:

a) Promoters’ Holdingb) Non – Promoters’ Holdingc) Others.

1) Promoters’ Holdings :-

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2) Non Promoters’ Holdings :-

3) Others :-

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SERVICE OFFERED:-

Various Services offered by UTI Bank are as follows:

a) Consumer Bankingb) NRIsc) Retail Loansd) Corporate Bankinge) Treasuryf) Capital Marketsg) Financial Advisory Services

BRANCHES:-

Notwithstanding the immense benefits that Internet Banking brings, the Bank also has other distribution channels. At the end of September 2005, the Bank increased its reach to 211 cities, towns and villages across the country through 373 Branches & Extension counters and 1737 ATMs. The Bank offers a complete range of retail and corporate services, including retail loans, corporate credit, forex services, investment banking, depository services, and investment advisory services. Our deposit base currently stands at over Rs. 34,000 crores with over 37 lakh accounts.

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STATE BANK OF INDIA

INTRODUCTION:-

The Bank is actively involved since 1973 in non-profit activity called Community Services Banking. All the branches and administrative offices throughout the country sponsor and participate in large number of welfare activities and social causes. Its business is more than banking because It touches the lives of people anywhere in many ways.

The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921.

Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernize India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework.

The Imperial Bank during the three and a half decades of its existence recorded an impressive growth in terms of offices, reserves, deposits, investments and advances, the increases in some cases amounting to more than

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six-fold. The financial status and security inherited from its forerunners no doubt provided a firm and durable platform.

But the lofty traditions of banking which the Imperial Bank consistently maintained and the high standard of integrity it observed in its operations inspired confidence in its depositors that no other bank in India could perhaps then equal. All these enabled the Imperial Bank to acquire a pre-eminent position in the Indian banking industry and also secure a vital place in the country's economic life.

When India attained freedom, the Imperial Bank had a capital base (including reserves) of Rs.11.85 crores, deposits and advances of Rs.275.14 crores and Rs.72.94 crores respectively and a network of 172 branches and more than 200 sub offices extending all over the country.

In 1951, when the First Five Year Plan was launched, the development of rural India was given the highest priority. The commercial banks of the country including the Imperial Bank of India had till then confined their operations to the urban sector and were not equipped to respond to the emergent needs of economic regeneration of the rural areas. In order, therefore, to serve the economy in general and the rural sector in particular, the All India Rural Credit Survey Committee recommended the creation of a state-partnered and state-sponsored bank by taking over the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. An act was accordingly passed in Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955. More than a quarter of the resources of the Indian banking system thus passed under the direct control of the State. Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries (later named Associates).

The State Bank of India was thus born with a new sense of social purpose aided by the 480 offices comprising branches, sub offices and three Local Head Offices inherited from the Imperial Bank. The concept of banking as mere repositories of the community's savings and lenders to creditworthy parties was soon to give way to the concept of purposeful banking subserving the growing and diversified financial

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needs of planned economic development. The State Bank of India was destined to act as the pacesetter in this respect and lead the Indian banking system into the exciting field of national development.


Shri Arun Kumar Purwar - Chairman Shri K. Ashok Kini - Managing Director Shri.T.S.Bhattacharya - Managing Director Shri.K.P.Jhunjhunwala - Director Prof. M.S. Swaminathan - Director Shri.Ajay G.Piramal - Director

Shri.Suman Kumar Bery - DirectorDr. Ashok Junjhunwala - DirectorShri.A.C.Kalita - DirectorShri. Amar Pal - DirectorShri.Arun Singh - DirectorShri.Rajiv Pandey - DirectorShri.Piyush Goyal - DirectorShri.Ashok K Jha - DirectorSmt.Shyamala Gopinath - Director

ASSOCIATE BANKS:-

State Bank of India has the following seven Associate Banks (ABs) with controlling interest ranging from 75% to 100%.

1. State Bank of Bikaner and Jaipur (SBBJ) 2. State Bank of Hyderabad (SBH) 3. State Bank of Indore (SBIr) 4. State Bank of Mysore (SBM) 5. State Bank of Patiala (SBP) 6. State Bank of Saurashtra (SBS) 7. State Bank of Travancore (SBT)

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The seven ABs have a combined network of 4596 branches in India which are fully computerized and 1070 ATMs networked with SBI ATMs, providing value added services to clientele.

The ABs recorded an impressive performance during 2003-04. The combined net profit of these banks increased by 38% over the

previous year to reach Rs.1938 crores. Deposits and advances grew by 20% and 22%, respectively, during the year. Three of the ABs viz. SBIr, SBP and SBS achieved NIL Net NPA status while the combined Net NPA ratio of all ABs was at 0.84% as on 31st March 2004.

SHAREHOLDING PATTERNS:-

DOMESTIC/FOREIGN SHAREHOLDINGS:-

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BANK OF BARODA

INTRODUCTION:- It all started with a visionary Maharaja's uncanny foresight into the future of trade and enterprising in his country. On 20th July 1908, under the Companies Act of 1897, and with a paid up capital of Rs 10 Lacs started the legend that has now translated into a strong, trustworthy financial body, THE BANK OF BARODA.

It has been a wisely orchestrated growth, involving corporate wisdom, social pride and the vision of helping others grow, and growing itself in turn.

The founder, Maharaja Sayajirao Gaekwad, with his insight into the future, saw "a bank of this nature will prove a beneficial agency for lending, transmission, and deposit of money and will be a powerful factor in the development of art, industries and commerce of the State and adjoining territories."

These words are etched into the mind, body and soul of what has now become a banking legend. Following the Maharaja's words, the emblem has been crafted to represent wealth, safety, industrial development and an inclination to better and promote the country's agrarian economy. This emblem shows a coin, symbolizing wealth, embossed with an upraised palm, a safety cover for the depositor's money, with a cogwheel that promotes industrial growth in tandem with the two corn ears that stand for the progress of the staple agricultural growth in the country.

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It has been a long and eventful journey of almost a century across 21 countries. Starting in 1908 from a small building in Baroda to its new hi-rise and hi-tech Baroda Corporate Centre in Mumbai, is a saga of vision, enterprise, financial prudence and corporate governance.


Dr. Anil K. Khandelwal - Chairman & Managing DirectorShri Avinash Chander Mahajan - Executive DirectorShri Vinod Rai - Nominee of The Govt. Of IndiaShri G.K. Sharma - Nominee of RBISmt. Masarrat Shahid - DirectorShri T.K.Balasubramanian - DirectorShri Manesh Prabhulal Mehta - DirectorShri Pradip N. Khandwalla - DirectorDr. Deepak Bhaskar Phatak - DirectorDr. Dharmendra Bhandari - Director

BRANCH NETWORK:-

Bank of Baroda has its Global Presence in the Countries like Bahamas, Belgium, Botswana, China, Fiji, Islands, Guyana, Hong Kong, Kenya, Mauritius, Malaysia, Seychelles, South Africa, Sultanate of Oman, Tanzania, Thailand, Uganda, United Arab Emirates, United Kingdom, United States of America, and Zambia.

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MISSION:-

The Bank shall continue its endeavor to enhance shareholders' value by protecting their interest and defend their rights by ensuring performance at all levels, and maximizing returns with minimal use of resources in its pursuit of excellence in corporate life. The Bank shall comply with not only the statutory requirements, but also voluntarily formulate and adhere to a set of strong Corporate Governance practices. The Bank shall strive hard to best serve the interests of its stakeholders including shareholders, customers, Government and public at large.

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Swot analysis:

SBI :-

STRENGTHS: India's oldest, largest and most successful commercial bank, offering the widest possible range of domestic, international and NRI products and services, through its vast network in India and overseas, easily accessible, law interest cost, free personal accident insurance

WEAKNESS: Limited use of technology ,Poor infrastructure

OPPORTUNITIES: Going global (opening branches in foreign countries)

THREATS: Emerging private sector banks with better technology and services

BANK OF BARODA:-

STRENGTHS: India’s number one public bank making hufe foreign transactions.

WEAKNESS: Less numbers of branches and ATM

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OPORTUNITIES: Looking forward to develop new branches in foreign countries.

THREATS: Emerging private sector banks with better technology and services

ICICI :-

STRENGTHS:Branch network , brand name , very fast service, No. one private sector bank of India,

WEAKNESS: High average balance maintenance , maintenances charges are high.

OPPORTUNITIES: Untapped rural market of India

THREATS: Emerging private banks like Citibank and HDFC bank

HDFC :-

STRENGTH: Maintains the highest level of ethical standards, professional integrity, corporate governance and regulatory compliance, Operational Excellence, Customer Focus, Product Leadership and People.

WEAKESS: Limited number of branches

OPPRTUNITIES: Untapped rural markets of India.

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THREATS: Competition among the private players.

UTI:

STRENGTH: Customer Focus ,best infrastructure

WEAKNESS: Less number of branches and ATMS

OPPORTUNITIES: Untapped rural market of India , collaborating with other banks for providing free services to the customers.

THREATS : Competition with other banks

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COMPARISION OF SELECTED PRIVATE Vs PUBLIC SECTOR BANKS WITH DATABASE 2004-

2005

TOTAL ASSETS:

BANKS(in Rs. Crore)

2004 2005 %change

SBI 407815.28 459882.87 12.77BOB 85108.66 94664.24 11.23ICICI 125228.87 167659.41 33.88HDFC 42306.99 51429.00 21.56UTI 24150.17 37743.69 56.29

Public sector banks total assets increased by 19% Private sector banks total assets increased by 23%

CAPITAL:

BANKS(in Rs. Crore)

2004 2005 %change

SBI 526.30 526.30 -

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BOB 294.53 294.53 -ICICI 966.40 1086.78 12.46HDFC 284.79 309.88 8.81UTI 231.58 273.80 18.23

Public sector banks capital increased by 19.76%

NETWORTH:

BANKS(in Rs. Crore)

2004 2005 %change


The net worth of public sector banks increased by 25.80% The net worth of private sector banks increased by 41.57%

DEPOSITS:

BANKS(in Rs. Crore)

2004 2005 %change


The deposit of public sector banks increased by 15.97% The deposit of private sector banks increased by 24.67%

ADVANCES:

BANKS(in Rs. Crore)

2004 2005 %change

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ICICI banks advances increased by 45.90 %. SBI advances increased by 28.14%

INVESTMENTS:

BANKS(in Rs. Crore)

2004 2005 %change

SBI 185676.48 197097.91 6.15BOB 38018.81 37074.44 -2.48ICICI 43435.52 50487.35 16.24HDFC 19363.46 19349.81 -0.07UTI 7792.76 14274.95 83.18

Public sector banks investments were up by 0.08% Private sector banks investments were up by 0.07%

NET PROFIT:

BANKS(in Rs. Crore)

2004 2005 %change

SBI 3681.00 4304.52 16.94BOB 967.00 676.84 -30.01ICICI 1637.11 2005.20 22.48HDFC 509.50 665.56 30.63UTI 278.31 334.58 20.22

Public sector banks net profit fell by 6.73% Private sector banks net profit fell by 12.80%

TOTAL INCOME:

BANKS(in Rs. Crore)

2004 2005 %change

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Total income of public sector banks rose 4.26% Total income of private sector banks rose 2.55%

INTEREST INCOME:

BANKS(in Rs. Crore)

2004 2005 %change


Public sector banks interest income increased by 9.26% Private sector banks interest income increased by 6.90%

FEE INCOME:

BANKS(in Rs. Crore)

2004 2005 %change


Public sector banks fee income increased by 13.50% Private sector banks fee income increased by 63.84%

NET NPA:

BANKS(in Rs. Crore)

2004 2005 %change

SBI 5441.73 5348.89 -1.71

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BOB 1042.00 619.64 -40.53ICICI 2037.00 1983.00 -2.65HDFC 27.95 60.63 116.92UTI 112.21 216.85 93.25

HDFC banks NPA’s increased by 116.92% BOB banks NPA’s declined by 40.53%

BIBLIOGRAPHY

www.gogle.com www.icicibank.com www.hdfcbank.com www.sbibank.com www.utibank.com www.bankofbaroda.com Business standard banking annual

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Comparison Between Private & Public Sector Banks

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