CHAPTER 1

INTRODUCTION

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Over view of Indian banking Segment

Structure of the organized banking sector in India. Number of banks are in brackets.

Banking in India in the modern sense originated in the last decades of the 18th century. The among the first banks were Bank of Hindustan, which established in 1770 and liquidated in 1829-32; and General Bank of India, established 1786 but failed in 1791.

The largest bank, and the oldest still in existence, is the State Bank of India. It originated as the Bank of Calcutta in June 1806. In 1809, it was renamed as the Bank of Bengal. This was one of the three banks funded by a presidency government; the other two were the Bank of Bombay and the Bank of Madras. The three banks were merged in 1921 to form the Imperial Bank of India, which upon India's independence, became the State Bank of India in 1955. For many years the presidency banks had acted as quasi-central banks, as did their successors, until the Reserve Bank of India was established in 1935, under the Reserve Bank of India Act, 1934.

In 1960, the State Banks of India was given control of eight state-associated banks under the State Bank of India (Subsidiary Banks) Act, 1959. These are now called its associate banks. In 1969 the Indian government nationalized 14 major private banks. In 1980, 6 more private banks were nationalized. These nationalized banks are the majority of lenders in the Indian economy. They dominate the banking sector because of their large size and widespread networks.

The Indian banking sector is broadly classified into scheduled banks and non-scheduled banks. The scheduled banks are those which are included under the 2nd Schedule of the Reserve Bank of India Act, 1934. The scheduled banks are further classified into: nationalized banks; State Bank of India and its associates; Regional Rural Banks (RRBs); foreign banks; and other Indian private sector banks. The term commercial banks refers to both scheduled and non-scheduled commercial banks which are regulated under the Banking Regulation Act, 1949.

Generally banking in India was fairly mature in terms of supply, product range and reach-even though reach in rural India and to the poor still remains a challenge. The government has developed initiatives to address this through the State Bank of India expanding its branch network and through the National Bank for Agriculture and Rural Development with things like microfinance.

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Growth of the company

With the potential to become the fifth largest banking industry in the world by 2020 and third largest by 2025 according to KPMG-CPII report, India’s banking and financial sector is expanding rapidly. The Indian Banking industry is currently worth Rs. 81 trillion (US $ 1.31 trillion) and banks are now utilizing the latest technologies like internet and mobile devices to carry out transactions and communicate with the masses.

The Indian banking sector consists of 26 public sector banks, 20 private sector banks and 43 foreign banks along with 61 regional rural banks (RRBs) and more than 90,000 credit cooperatives.

Factors promoting growth of Banking and Financial Services

The Banking Laws (Amendment) Bill that was passed by the Parliament in 2012 allowed the Reserve Bank of India (RBI) to make final guidelines on issuing new bank licenses. Moreover, the role of the Indian Government in expanding the banking sector is noteworthy. It is expected that the new guidelines issued by RBI will curb practices of impish borrowers and streamline the loan system in the country. In the coming time, India could see a rise in the number of banks in the country, a shift in the style of operation, which could also evolve by incorporating modern technology in the industry.

Another emerging trend witnessed by the banking sector is the use of social media platform like Facebook to attract customers. In September 2013 ICICI bank launched a Facebook bill payment and fund transfer service called ‘Pockets’ for customer convenience.

According to a report by Zinnov, a Globalization and Market Expansion firm, ‘IT adoption in BSFI sector in India’, the Information Technology Industry spend in BFSI vertical is expected to reach USD 3.5 billion by Financial Year 2014. The study also highlighted ‘the growing maturity of Indian BFSI organizations in IT adoption, as technology is seen as a driver of business value. Technology firms have great potential to explore in the BFSI sector, which contributes to eight per cent of India's Gross Domestic Product.’

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Life Insurance

The Indian life insurance industry is estimated to grow at a compounded annual growth rate (CAGR) of 14.1 per cent, and reach US$ 111.9 billion in 2015 from US$ 66.5 billion in 2011, according to a report by BRIC data. This would make India the third-largest market for life insurance in the world by 2015. India’s present position is at number 12, among top global markets for life insurance. Number of policies sold is expected to increase to 85.21 million in 2015 from 53.23 million in 2010. The 2014-15 Union Budget should exempt life insurance products from taxation to provide investors an incentive to buy a policy. The insurance industry can gain leverage from India's burgeoning population only by providing a special tax window for life insurance policies.

Health Insurance

In the non-life insurance industry, health insurance is the second largest segment in India; with players in both the public and private sectors playing an active role. The industry is concentrated around 4 major public sector companies namely, New India Assurance, United India Insurance, National Insurance and Oriental Insurance.

The Indian health insurance industry has seen major growth in the past 6 years. The Indian health insurance industry is expected to grow at a CAGR of 37.2% from FY’2011 - FY’2016; with surging medical costs, rising population and increased awareness among consumers in the country.

Recruitment Trends in BSFI Industry

The Banking and Financial Services Industry is expected to recruit about 8.4 million people as per the growth rate each year. BSFI workforce requirement between 2008 and 2022 is expected to be about 4.2 million and sector may create up to 20 lakh new jobs in the next 5-10 years.

Advantaged by issuance of new licences and efforts being made by the RBI and the Government to expand financial services into rural areas, the hiring trend may further get a boost from the public sector banks. Since most banking workforce is scheduled to retire in the times to come, they would be in dire need of fresh talent. According Randstad India, global HR service provider in India, the banking sector will generate 7-10 lakh jobs in the coming decade and the sector would be the among top job creators in 2014.

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According to ‘Human Resource and Skill Requirements in the Banking, Financial Services & Insurance Sector (2022) report, apart from the on-rolls employment there is significant contractual employment across all the above segments through various financial positions such as Direct Selling Agents (DSA’s), Insurance agents, Mutual Fund Advisors, etc.

Challenges in BFSI

The major challenge faced by the Indian Banking and Financial sector is that the level of financial exclusion in India is alarming and there is an urgent need to find a plausible solution to the same. The IBA–BCG survey of banks revealed that the level of confidence in finding profitable solutions for financial inclusion is not very high. Financial inclusion has solely been the responsibility of public banks up until now, but by using inclusive growth as one of the criteria for new licences (new banks have to open 25 per cent of their branches in rural areas); the RBI will have made the new private sector banks responsible as well. Currently, public sector banks have more branches than any other bank group in the rural and semi-urban areas.

The banking and insurance industry is challenged by competitive pressures, changes in customer loyalty, stringent regulatory environment and entry of new players, all of which are pressuring the organizations to adopt new business models, streamline operations and improve processes.

Road Ahead

An IBA-FICCI-BCG report suggests that India’s gross domestic product (GDP) growth will make the Indian banking industry the third largest in the world by 2025. According to the report, the domestic banking industry is set for an exponential growth in coming years with its assets size poised to touch USD 28,500 billion by the turn of the 2025. With the deposits growing at a CAGR of 21.2 per cent (in terms of INR) in the period FY 06–13, there has been evident growth in the overall industry.

This growth can be attributed to banks shifting focus to client servicing. Public as well as private sector banks are underlining the importance of technology infrastructure, in order to improve customer experience and gain a competitive edge. Utilizing the popularity of internet and mobile banking, banks are increasingly adopting an integrated approach for asset–liability match, credit and derivatives risk management.

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FINANCIAL SERVICES CATEGORIES Broker-Dealers, Custodians, Back Office Technology and Software Customer Development and Service Financial Strategies and Research Education and Designations Ethics and Compliance Resources Glossary Job Board Public Companies After Tax Returns Securities Law City and Major Metropolitan Area Economies Compensation, Salary, Bonus, Profit Sharing Marketing for Financial Services Blog Updated Articles and Resources 

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Types of Banks.

Commercial banks differ from investment banks. Most financial consumers think of “the bank” as a place to keep liquid financial resources, such as checking accounts and savings accounts. A consumer may have personal accounts at a commercial bank. The commercial bank’s primary business involves taking in financial assets as deposits then lending these assets to other customers at a rate of interest

. The interest rate the bank charges on loans and revolving lines of credit or other credit facilities will depend on the current interest rate environment.

A consumer bank, such as a credit union or savings bank, may focus on the personal banking needs of a specific group or industry.

An investment bank raises capital for businesses. The investment bank works with businesses to sell loans offered by the company called bonds. Bonds are debts owed by the company to investors. The investment bank distributes the bond issue to customers. The investment bank may choose to distribute publicly traded bonds to clients, or arrange a private placement of the client company’s debt directly with another company. The investment bank prices the debt according to the current yield curve and the company’s credit rating. A company's credit rating, like a consumer's FICA credit score, helps the company pay less to sell bonds in the public or private markets.

Financial services provided by banks. Consumers use banks to keep financial resources safe and readily available for use. Deposits made by customers of the bank are insured by the Federal Deposit Insurance Corporation (FDIC). Customers of the bank rely upon its ability to liquidate financial resources held on account when they request the bank to do so. Banks provide customers with specially printed checkbooks. Customers pay creditors and other financial obligations by writing a check on the bank account. The bank pays the check written by its customer. Overdrafts and other fees are charged in accordance with the bank’s customer policy. If a customer withdraws more money than he has in account with the bank, the bank charges the customer a fee. Customers may arrange for overdraft protection with the bank. Overdraft protection is a loan that is accessed when the customer’s available fund balance is negative.Banks lend money to private and business customers. These loans take the form of personal loans, commercial/business loans, and home/property loans (mortgages).Banks also issue credit cards to customers. A credit card is a form of demand loan available to the customer. The bank also supports its credit card business by processing payments to settle customer credit card bills. To support merchants accepting customers’ credit cards, banks may

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offer a merchant network service. Merchant network services include card terminals or credit card machines.Banks provide debit cards to their customers. Sometimes called check cards, debit cards provide ready access for customer use without the need to make a physical check or cash withdrawal. Customers may use debit or credit cards in the bank’s automatic teller machine (ATM).Banks facilitate fund transfers for customers via wire transfer and electronic transfer of funds. Banks utilize an interbank network to transfer funds for clients. Banks also provide certified or cashiers’ checks for customers. The bank guarantees the check so that the customer may offer it as certified available funds to a payee. In order to create a certified check, the bank usually withdraws client funds.Banks offer the services of a notary public to validate clients’ important documents.Private banks. The financial needs of high net worth individuals, families, and their businesses differ from those of most consumers. Private bank clients must usually present a certain minimum net worth to obtain private banking services. Private bank services include tax and estate planning, tax planning, and philanthropic gift planning.

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ICICI Bank

ICICI Bank Limited

Type Public company

Traded asBSE: 532174NSE: ICICIBANKNYSE: IBNBSE SENSEX ConstituentCNX Nifty Constituent

Industry Banking, Financial services

Founded 1994

Headquarters Mumbai, Maharashtra, India

Area served WorldwideKey people K. V. Kamath (Chairman)

Ms.Chanda Kochhar (MD & CEO)

Products Credit cards, Consumer banking, corporate banking ,finance and insurance ,investment banking, mortgage loans, private banking, wealth management

Revenue  US$ 8.255 billion (2014)

Operating income

 US$ 1.934 billion (2014)

Profit  US$ 1.828 billion (2014]

Total assets  US$99 billion (2014)

Total equity  US$12.73 billion (2014)

Number of employees

94,204 (2014

Website www.icicibank.com

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ICICI Bank is an Indian multinational banking and financial services company headquartered in Mumbai, Maharashtra, India. As of 2014 it is the second largest bank in India in terms of assets and market capitalization. It offers a wide range of banking products and financial services for corporate and retail customers through a variety of delivery channels and specialized subsidiaries in the areas of investment banking, life, non-life insurance, venture capital and asset management. The Bank has a network of 3,845 branches and 12,012 . ATMs in India, and has a presence in 19 countries.

ICICI Bank is one of the Big Four banks of India, along with State Bank of India, Punjab National Bank and Bank of Baroda. The bank has subsidiaries in the United Kingdom, Russia, and Canada; branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre; and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. The company's UK subsidiary has also established branches in Belgium and Germany.

In March 2013, Operation Red Spider showed high-ranking officials and some employees of ICICI Bank involved in money laundering. After a government inquiry, ICICI Bank suspended 18 employees and faced penalties from the Reserve Bank of India in relation to the activity

Objective

ICICI Bank's Green initiative is to make healthy environment in the organization i.e.; to create intrapersonal skills amongst the customer and understanding between employees of the organization.

Broad objectives of the ICICI are:

1. to assist in the creation, expansion and modernization of private concerns;2. to encourage the participation of internal and external capital in the private concerns;3. to encourage private ownership of industrial investment.

.

Domestic subsidies

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ICICI Prudential Life Insurance Company Limited ICICI Lombard General Insurance Company Limited ICICI Prudential Asset Management Company Limited ICICI Prudential Trust Limited ICICI Securities Limited ICICI Securities Primary Dealership Limited ICICI Venture Funds Management Company Limited ICICI Home Finance Company Limited ICICI Investment Management Company Limited ICICI Trusteeship Services Limited ICICI Prudential Pension Funds Management Company Limited

International ICICI Bank UK PLC ICICI Bank Canada ICICI Bank Eurasia Limited Liability Company ICICI Securities Holdings Inc. ICICI Securities Inc. ICICI International Limited

HDFC Bank

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HDFC Bank Limited

"We understand your world"

Type Public company

Traded as BSE: 500180NSE: HDFCBANKNYSE: HDBBSE SENSEX ConstituentCNX Nifty Constituent

Industry Banking, Financial services

Founded August 1994

Headquarters Mumbai, Maharashtra,India

Area served Worldwide

Key people Aditya Puri (MD)

Products Investment BankingInvestment ManagementWealth ManagementPrivate BankingCorporate BankingPrivate EquityFinance and InsuranceConsumer BankingMortgagesCredit Cards

Revenue  US$ 6.5 billion (March 2013)

Operating income  US$ 1.87 billion (March 2013)

Profit  US$ 1.1 billion (March 2013

Total assets  US$ 66.7 billion (May 2013)

Total equity  US$ 8.6 billion (March 2013)

HDFC Bank Limited is an Indian banking and financial services company headquartered in Mumbai, Maharashtra. It is the fifth largest bank in India by assets, incorporated in 1994 .It is the largest private sector bank in India by market capitalization as of 24 February 2014. As on Jan 2 2014, the market cap value of HDFC was around US$26.88 billion, as compared to Credit Suisse Group with US$47.63 billion] The bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. According to the Brand Trust Report 2014, HDFC was ranked 32nd among India's most trusted brands. HDFC was ranked 45th on the list of top 50 Banks in the world in terms of their market captialization.

As of 31 March 2013, the bank had assets of INR 4.08 trillion. For the fiscal year 2012-13, the bank has reported net profit of INR 69 billion, up 31% from the previous fiscal year. Its customer base stood at 28.7 million customers on 31 March 2013.

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Outlook Money award 2013 Best Bank in Large Banks Category [33][34]

IBA Innovation Awards Most Innovative Use of Technology [34][35]

Dun & Bradstreet Polaris Financial Technology Banking Award 2013

Best Private Sector Bank Technology AdoptionBest Private Sector Bank RetailOverall Best Private Sector Bank

[34][36]

Institutional Investor Best Bank in AsiaMr. Aditya Puri - Best CEO

[37]

Forbes Asia Fab 50 Companies List for the 7th year [34][38]

Sunday Standard Best Banker AwardsBest Private Sector Bank: LargeSafest Bank: LargeMr. Aditya Puri: Top Achiever

[34][39]

Asia Money 2013 Best Domestic Bank in IndiaMr. Aditya Puri: Best Executive in India

[34][40]

MACCIA Awards 2013 Best in Financial Services: Bank Category [41]

UTI Mutual Fund CNBC TV 18 Financial Advisory Awards 2012 Best Performing Bank – Private [34][42]

Dun & Bradstreet Corporate Awards 2012 Best in Banking sector [43]

NDTV Profit Business Leadership Awards 2012 Winner in the banking category [34][44]

NASSCOM CNBC–TV18 IT Innovation Award Best IT Driven Innovation in Banking (COMMERCIAL)

[34][45]

The National Quality Excellence Awards Best Customer Service Result [46]

Brand Trust Report 2013 Most Trusted Finance Brand [47]

FE Best Bank AwardsBest Bank: New Private sectorBest in Strength & SoundnessMr. Aditya Puri: Best Banker

[34][48]

Skoch Financial Inclusion Awards 2013 Organization of the Year [34][49]

Axis Bank

Axis Bank

Traded as BSE: 532215LSE: AXBCNSE: AXISBANK

Industry Banking, Financial services

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Founded 1994 (as UTI Bank)

Headquarters Mumbai, Maharashtra, India[1]

Key people (Chairman)Shikha Sharma (MD & CEO)

Products Credit cards, consumer banking, corporate banking,finance and insurance,investment banking, mortgage loans, private banking, private equity, wealth management

Revenue 340 billion (US$5.3 billion) (2012)[2][3]

Operating income

94 billion (US$1.5 billion) (2012)[2][3]

Net income 52 billion (US$820 million) (2012)[2][3]

Total assets 3.4 trillion (US$53 billion) (2012)

Number of employees

42,420 (on 31-March-2014

Website www.axisbank.com

Axis Bank Limited (formerly UTI Bank) is the third largest private sector bank in India. It offers financial services to customer segments covering Large and Mid-Sized Corporate, MSME, Agriculture and Retail Businesses. Axis Bank has its headquarters in Mumbai, Maharashtra

Awards and recognitions

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Bank of the Year Money Today FPCIL Awards 2012–13[18]

Best Bank CNBC-TV18 India’s Best Bank and Financial Institution Awards 2012 Best Bank Runner-up – Outlook Money Awards 2012 'Consistent Performer' in 'India’s Best Banks – 2012 survey' by Business Today and

KPMG[19]

Fastest Growing Large Bank Dun & Bradstreet – Polaris Financial Technology Banking Awards 2012

Fastest Growing Large Bank Business world Best Banks Survey 2012 Best Domestic Bond House The Asset Triple A Country Awards 2012 India Bond House of the year IFR ASIA – Country Awards 2012 Deal Maker of the Year in Rupee Bonds Business world Magna Awards – India's

Best Deal Makers 2012 The Best Emerging Bullion Dealing Bank 9th India International Gold Convention-

2011-12 Best Acquiring Institution in South Asia Visa LEADER Award at Visa’s 2012

APCEMEA Security Summit, Bali Gold Shield for Excellence in Financial Reporting in the Private Banks category –

2011–12 from Institute of Chartered Accountants of India

Kotak Mahindra Bank

Kotak Mahindra Bank

Type Public company

Traded as BSE: 500247NSE: KOTAKBANK

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Industry Banking, Financial service

Founded 1985 (as Kotak Mahindra Finance Ltd)

Headquarters Mumbai, Republic of India

Key people Uday Kotak (Founder & Executive Vice Chairman)C. Jayaram (Joint MD)Dipak Gupta (Joint MD)Jaimin Bhatt (President & Group CFO)KVS Manian (President - Corporate & Investment Banking)Shanti Ekambaram (President - Consumer Banking)Narayan SA (President - Commercial Banking)Gaurang Shah (President - Asset Management, International Business & Insurance)Mohan Shenoi (President - Group Treasury & Global Markets)Arvind Kathpalia (Group Chief Risk Officer, Risk Management)D Kannan (Group Head - Commercial Banking)

Products Deposit accounts, Loans,Investment services, Business banking solutions, Treasury and Fixed income products etc.

Revenue 109.63 billion(US$1.7 billion)(2011)

Net income 15.69 billion(US$250 million)(2011)

Website www.kotak.com

Kotak Mahindra Bank is the fourth largest Indian private sector bank by market capitalization, headquartered in Mumbai, Maharashtra. The Bank’s registered office (headquarter) is located at 27BKC, Bandra Kurla Complex, Bandra East, Mumbai,Maharashtra, India.

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In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given the licence to carry on banking business by the Reserve Bank of India (RBI). Kotak Mahindra Finance Ltd. is the first company in the Indian banking history to convert to a bank.

As on Sept 30, 2014, Kotak Mahindra Bank has over 641 branches and over 1,159 ATMs spread across 363 locations in the country

Awards and Recognitions

Won ‘Gold Award for Best Innovation – World’s first socially powered bank account’ and ‘Gold Award for Best App developed – World’s first banking application using Twitter’ awards at the Indian Digital Media Awards 2014 for Kotak Jifi

Recognised as Highest Fundraising Company in Corporate Challenge category in Standard Chartered Mumbai Marathon 2014

Kotak Mahindra Bank was ranked 292nd among India's most trusted brands according to the Brand Trust Report 2012, a study conducted by Trust Research Advisory. In the Brand Trust Report 2013, Kotak Mahindra Bank was ranked 861st among India's most trusted brands and subsequently, according to the Brand Trust Report 2014, Kotak Mahindra Bank was ranked 114th among India's most trusted brands.[6]

Adjudged Best Bank among Emerging Banks at Outlook Money Awards 2013Adjudged Best Medium Sized Bank of the Year 2013 by Business WorldKotak Junior ad film adjudged Best Banking Ad Worldwide 2013, by Bank Innovation –

a leading global blog on bankingOne Asian Banker’s IT Award in Best Self Service category for Courtesy Call Back

featureWon ‘Platinum for Innovation – World’s first Twitter Enabled Banking Product’, ‘Gold

for Best Usage of Viral Marketing’, ‘Gold for Best Usage of Social Media’, ‘Gold for Best Usage of Digital Marketing’ and ‘Gold for Best Digital Strategy’ at Campaign India Digital Crest Awards 2013 for Kotak Jifi

Won EMC Transformer Award 2013 for innovative implementation of storage technologies in the Bank

Won National Securities Depository Ltd. (NSDL) award in the Best Performer in account Growth Rate category 2013, for Demat Accounts [7]

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State Bank of India

State Bank of India

Type Public

Traded as NSE: SBINBSE: 500112LSE: SBID

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BSE SENSEX ConstituentCNX Nifty Constituent

Industry Banking, Financial Services

Founded 2 June 1956 , Nationalization , 1 July 1955

Headquarters Mumbai, Maharashtra, India

Area served Worldwide

Key people Arundhati Bhattacharya(Chairperson)

Products consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, savings,Securities, asset management, wealth management, Credit cards,

Revenue   210736 crore (US$33 billion) (2013)

Profit   17916 crore (US$2.8 billion) (2013)

Total assets   2374839 crore (US$370 billion) (2013)

Total equity   98884 crore (US$16 billion) (2012)

Owner Government of India

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Number of employees

222,033 (2014)

Slogan The Banker to Every Indian

Website www.sbi.co.in

State Bank of India is an Indian multinational, Public Sector banking and financial services company. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra. As of December 2013, it had assets of US$388 billion and 17,000 branches, including 190 foreign offices, making it the largest banking and financial services company in India by assets.

State Bank of India is one of the Big Four banks of India, along with Bank of Baroda, Punjab National Bank and Bank of India.

The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding, in 1806, of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two "presidency banks" in British India, Bank of Calcutta and Bank of Bombay, to form the Imperial Bank of India, which in turn became the State Bank of India . Government of India owned the Imperial Bank of India in 1955, with Reserve Bank of India (India's Central Bank) taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India.

State Bank of India is a regional banking behemoth and has 20% market share in deposits and loans among Indian commercial banks.

Recent awards and recognitions

SBI was ranked 73rd largest bank in the world, according to 2014 SNL financial data.

SBI won the Best Bank award in the 'Asia MONEY FX POLL OF POLLS 2014’ for best overall performance as domestic provider of Forex services over the last 10 years.

SBI was ranked as the top bank in India based on tier 1 capital by The Banker magazine in a 2014 ranking. SBI was ranked 298th in the Fortune Global 500 rankings of the world's biggest corporations for the year 2012.

SBI won "Best Public Sector Bank" award in the D&B India's study on 'India's Top Banks 2013'.

State Bank of India won three IDRBT Banking Technology Excellence Awards 2013 for “Electronic Payment Systems”, “Best use of technology for Financial Inclusion”, and “Customer Management & Business Intelligence” in the large bank category.

SBI won National Award for its performance in the implementation of Prime Minister’s Employment Generation Programme (PMEGP) scheme for the year 2012.

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Best Online Banking Award, Best Customer Initiative Award & Best Risk Management Award (Runner Up) by IBA Banking Technology Awards 2010

SKOCH Award 2010 for Virtual corporation Category for its e-payment solution SBI was the only bank featured in the "top 10 brands of India" list in an annual

survey conducted by Brand Finance and The Economic Times in 2010. The Bank of the year 2009, India (won the second year in a row) by The Banker

Magazine Best Bank – Large and Most Socially Responsible Bank by the Business Bank

Awards 2009 Best Bank 2009 by Business India The Most Trusted Brand 2009 by The Economic Times. SBI was named the 29th most reputed company in the world according

to Forbes 2009 rankings Most Preferred Bank & Most preferred Home loan provider by CNBC Visionaries

of Financial Inclusion By FINO Technology Bank of the Year by IBA Banking Technology Awards SBI was 50th Most Trusted brand in India as per the Brand Trust Report 2013,an

annual study conducted by Trust Research Advisory, a brand analytics company and subsequently, in the Brand Trust Report 2014, SBI finished as India's 19th Most Trusted Brand in India.

Bank of Baroda

Bank of Baroda

Type Public

Traded as BSE: 532134

Industry Banking, Financial services

Founded 20 July 1908

Founder Maharaja Sayajirao Gaekwad

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Headquarters Vadodara (Baroda), Gujarat, India

Area served Worldwide

Key people (Chairman & MD)

Products Credit cards, consumer banking,corporate banking, finance and insurance, investment banking,mortgage loans, private banking,private equity, wealth management

Revenue   346 billion (US$5.4 billion) (2012)

Net income   52.48 billion (US$820 million) (2012)

Total assets   4.574 trillion (US$72 billion) (2012)

Website www.bankofbaroda.com

Bank of Baroda (BoB) (Hindi: बैंक ऑफ़ बड़ौदा) is an Indian state-owned banking and financial services company headquartered in Vadodara (earlier known as Baroda) in Gujarat, India. It is the second-largest bank in India, after State Bank of India, and offers a range of banking products and financial services to corporate and retail customers through its branches and through its specialised subsidiaries and affiliates. During FY 2012-13, Its total business was   8,021 billion.In addition to its headquarters in its home state of Gujarat, it has a corporate headquarters in the Bandra Kurla Complex inMumbai.

Based on 2012 data, it is ranked 715 on Forbes Global 2000 list. BoB has total assets in excess of   3.58 trillion, a network of 4913 branches in India, and over 2000 ATMs. 

The bank was founded by the Maratha, Maharaja of Baroda, H. H. Sir Sayajirao Gaekwad III on 20 July 1908 in the Princely State of Baroda, in Gujarat. The bank, along with 13 other major commercial banks of India, was nationalised on 19 July 1969, by the Government of India and has been designated as a profit-making public sector undertaking (PSU).

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Bank of Baroda is one of the Big Four banks of India, along with State Bank of India, ICICI Bank and HDFC Bank.

Dena Bank

dena bank

Type Public

Traded as BSE: 532121NSE: DENABANK

Industry FinancialCommercial banks

Founded 1938

Headquarters Mumbai, India

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Key people Shri Ashwani Kumar(Chairman and Managing Director)Shri A.K.Dutt (Executive Director)

Revenue 55673.7 million(US$870 million) (2010–11)

Net income 6116.3 million(US$96 million) (2009–10)

Website http://www.denabank.com

Dena Bank (Hindi: देना बैंक), headquartered in Mumbai, is owned by the Government of India, and has a network of over 1400 branches.[3] The bank was founded in 1938 and the Indian government nationalized it in 1969.

Currently (September 2014), the Economic Offenses Wing of the Mumbai Police and the Central Bureau of Investigation are investigating a major deposit fraud at Dena Bank, Oriental Bank of Commerce, and several other banks, including Vijaya Bank, UCO Bank, Bank of India and Dhanlaxmi Bank.

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Bank of India

Bank of India

Type Public (BSE: BOI)

Industry Financial services

Founded September 7, 1906 (108 years ago)

Headquarters Mumbai, Maharashtra, India

Key people Vijayalakshmi R Iyer (CMD)

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Products Commercial BankingRetail BankingPrivate BankingAsset ManagementMortgagesCredit Cards

Revenue 243935.0 million(US$3.8 billion)

Operating income

53842.3 million(US$850 million)

Net income 24887.1 million(US$390 million)

Bank of India (BoI) is commercial bank with headquarters in Mumbai, Maharashtra, India. Founded in 1906, it has been government-owned since nationalization in 1969. Bank of India has 4545 branches as on 31 December 2013, including 54 branches outside India. BoI is a founder member of SWIFT (Society for Worldwide Inter Bank Financial Telecommunications), which facilitates provision of cost-effective financial processing and communication services.

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OVERVIEW OF WORLD MARKETResearch and Markets: Global Banking Industry 2012-2017: Total Industry Assets Forecast To Climb to an Estimated US $163,058 Billion in 2017 With a CAGR of 8% Over the Next Five

YearsResearch and Markets has announced the addition of the "Global Banking Industry 2012-2017: Trends, Profits and Forecast Analysis" report to their offering.

The global banking industry faces short-term uncertainty due to the debt crises that challenge several major economies.

The banking industry is highly fragmented and includes segments such as retail banking, corporate and investment banking, and asset and wealth management. The retail banking segment registered significant growth during 2006-2011 and has excellent potential to grow at an even more rapid pace over the forecast period. Europe dominates the global banking industry with 43% of total market share. The Asia Pacific banking industry, however, grew much faster than both the European and North American regions during 2006-2011. Asia Pacific continues to possess huge opportunity for industry growth. Rising per capita income in the region is expected to drive consumer savings and investment in banking sector. The massive unbanked population in India and China offers immense opportunity for banking companies. The North American banking industry is anticipated to grow modestly in the near term. The Rest of World's industry growth trajectory offers opportunity for companies to expand their business in those nations.

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Europe's debt crisis and the large government budget deficit in the US are expected to reduce government spending, resulting in sluggish short-term economic growth in both regions. Rising middle class populations and escalating household incomes in emerging markets provide substantial opportunity for global banks. Rapid technological advances are leading to dramatic shifts in the banking industry as the processing cost per transaction is approaching zero while simultaneously improving efficiency. These advantages are likely to increase trading volumes at the institutional level.

This study provides a concise overview of the global banking industry. The report tracks three industry segments for four regions; thus, it tracks 12 segments of the global banking industry. This report includes fee income earned by banks from bank assurance, but excludes the premium income from insurance.

OTHER BANKS IN THE INDIAPublic-sector banks

There are currently 27 public sector banks in India out of which 19 are nationalized banks and 6 are State Bank of India and its associate banks.

State Bank and its associates

State Bank of India

State Bank of Bikaner and Jaipur

State Bank of Hyderabad

State Bank of Mysore

State Bank of Patiala

State Bank of Travancore

Nationalized banks

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Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab & Sind Bank

Punjab National Bank

Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India

Vijaya Bank

Other public sector banks

Bharatiya Mahila Bank

IDBI Bank

Post Bank of India

MUDRA Bank

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Private-sector banks

Old private sector banks

Catholic Syrian Bank

City Union Bank

Dhanlaxmi Bank

Federal Bank

ING Vysya Bank

Jammu and Kashmir Bank

Karnataka Bank

Karur Vysya Bank

Lakshmi Vilas Bank

Nainital Bank[A Subsidiary of Bank of Baroda]

Ratnakar Bank

South Indian Bank

Tamilnad Mercantile Bank

New private sector banks

Axis Bank

Development Credit Bank

HDFC Bank

ICICI Bank

IndusInd Bank

Kotak Mahindra Bank

Yes Bank

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CHAPTER- 2

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Literature Review

Swatee et al. (2012), in their paper identified key dimensions of organizational culture and communication which can shape employee engagement in bank. Kinjal Bhatt (2012), while conducting a case study at GNFC on Employee engagement: a tool to achieve sustainable growth, noted that Employee Engagement in an organization can definitely enhance organization’s performance, productivity, pride and prestige. Employee Engagement depends on one’s professional knowledge,concern for job and motivation from superiors. In GNFC she found good working environment, sharing and openness to share views, training and development, good pay structure and perks, etc. which was responsible for high ratio of employee engagement. Bijay Kumar (2011), identified the factors of Employee Engagement which influence the performance outcome of organization. These factors included Factors Influencing Employee Engagement Recruitment, Job Designing, Career Development Opportunities, Leadership, Empowerment, Equal Opportunities and Fair Treatment, Training and Development, Performance Management, Compensation, Health and Safety, Job Satisfaction, Communication, Family Friendliness. The highest contributing factor employee recognition was powerful contributor more than any other variable. Employee satisfaction is considered with in empirical studies either as overall feelings about job or as a related set of attitudes about various aspects of jobs (Spector 1997) .Lock (1976) defined employee satisfaction as a pleasurable or positive emotional state resulting from the appraisal of one’sjob or job experience. There are some factor’s that affects the job satisfaction level. Over the many years many studies have attempted to categorized and find out the factor for job satisfaction (Abdullah etal 2011), but other factors such as promotion recognition of work and employee loyalty also considered. Salaries and incentives are the most important determinants of job satisfaction The major objective of this Paper is to examine the nature and causes of job satisfaction. This was pursued through a literature review of the more popular theories and models related to job satisfaction. Included in the review are summaries of Maslow's and Alderfer's need hierarchy theories, achievement motivation theory, Herzberg's motivation-hygiene theory, expectancy theory, job characteristics theories, discrepancy theory, equity theory, and studies relating to the clustering of facet satisfactions. Job satisfaction is simply defined as doing a job one enjoys, doing it well, and being suitably rewarded for efforts. In other words, it is an affective response to a job that consequences from the comparison of perceived outcomes with those that are desired shortly, job satisfaction describes the feelings, attitudes or preferences of individuals regarding work (Chen, 2008). Furthermore, it is the degree to which employees enjoy their jobs (McCloskey and McCain, 1987). And also, it is possible to see a number of theories developed to understand its nature in literature. Vroom (1964), need/value fulfillment theory, states that there is negative relationship between individual needs and the extent to which the job supplies these needs. On the other hand, Porter and Lawler (1968) compare the influences on job satisfaction in two groups of internal and externalThe term job satisfaction has been conceptualized in many ways. It focuses on all the feelings that an individual has about his/her job. It has been assumed by organizational behavior researches that individuals also express high satisfaction in their jobs are likely to be more productive, have higher involvement are likely to resign than employees with less satisfaction. Various researchers in various spheres have studied it. Arunima Srivastava and Pooja Purang (2009) conducted a study on Employee perceptions of job satisfaction: comparative study on

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Indian banks. The objective of the study was to compare the job satisfaction level of employees of a public and private sector bank and to ascertain whether the sectorial differences in terms of compensation, growth opportunities, social environment and job security influence employees’ perception of job satisfaction. The study used independent samples t-test and qualitative analysis and the results revealed that private sector bank employees report greater satisfaction with the pay and benefit aspect and the public sector bank employees are more satisfied in respect to job security. RaiImtiaz Hussain (2009) conducted a research to examine the relationship between dependent factor i.e. job satisfaction and all independent factors i.e. pay, job security, supervision, relationship with coworkers and promotional opportunities. Correlation, regression, reliability, means, median, independent samples t-test was applied to analyze the survey. The finding was that supervision, job security and promotional opportunities have positive relationship with job satisfaction. Relationship with co–workers is moderate with job satisfaction while pay has weak but positive relationship with job satisfaction. K.R. Sowmya and N. Panchanathan (2011) conducted a research to identify the factors influencing job satisfaction of employees in the banking sector in Chennai and to give suggestions about the factors influencing employee commitment level in the organization to the banking sector. The researcher has done a factor analysis using principal component method. The results found that the job suitability as well as working conditions and other interpersonal relationship among the workers is able to ascertain their level of satisfaction with in the working domain. Nalan Yetim and Unsal Yetim (2005) oriented a research to determine whether cultural orientations of employees’ job satisfaction, which was pervasive, and salient attributes for Turkish society. The findings of the study revealed that paternalism, collectivism and power distance predicted employees’ job satisfaction significantly. Komal Khalid Bhatti and Tahir Masood Qureshi (2007) conducted a study to understand and analyze employee participation, job satisfaction, employees’ commitment and employee productivity and to expose the scope of association sandwiched between employee participation, job satisfaction, and employee commitment and employee productivity in Pakistan’s telecommunications, oil & gas and banking sector organization. The finding was that employee participation not only an important determinant of job satisfaction components. Increasing employee participation will have a positive effect on employee commitment and employee productivity.

Dr. Nikkos Kakkos, Dr. Panaglotis Trivellas and Kaliopi Fillipon (2010), focuses on employee perceptions regarding job motivation and work stress in order to study the relationship with the perceived employee job satisfaction in banking industry. It examines the impact of multiple needs’ satisfaction, work stress and such variables as gender, age, work experience, work position, educational level on job satisfaction. The findings of this study was that four motivation dimensions i.e. existence need – pay, relatedness needs – supervisors, relatedness needs – peers and growth needs expected one dimension i.e. existence needs – fringe benefits have a positive influence on job satisfaction. The analysis also supports a negative relationship between stress experienced at work and employee job satisfaction while the latter seems to be influenced by employees’ age too. Yasir Hussan, Kashifuddin, Zark–mir, Khalil Ahmed, Abdul Mateen, Waseem Ahmed and Ahmed Bilal Nasir (2011), conducted a study to examine the job satisfaction level in private banking sector of Pakistan. The result of the study was that most of the employees working in private banks are satisfied with their work, management functions and job positions. The study reveals also some factors that are point of high concern to employees regarding satisfaction as- job security, organizational operations, working conditions, incentives

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and rewards. Debashish Sengupta (2009) conducted a research to ascertain the job satisfaction degree among bank officers, to elicit officer’s views on the different factors of job satisfaction and to study the impact of different variables such as the occupational level, age, education, organizational climate, economic background and gender on the various job satisfaction factors. Sampling techniques used was no probability, convenience and judgmental. The finding shows that with the change of satisfaction determinants, level of job satisfaction also varies. Ahmed Imran Hunjra, Muhammad Irfan Chani, Sher Aslam, Muhammad Azam and Kashif – U. R. – Rehman (2010) oriented a research to determine the impact of various Human Resource Management Practices like job autonomy, teamwork environment and leadership behavior on job satisfaction. The study used correlation, regression and independent samples t-test. The findings inferred that male and female workers have significantly different level of job satisfaction and there is a positive and significant link between job satisfaction and Human Resource Management. Practices like team work environment, job autonomy and behavior of leadership. Nourdin Mansor, jannah Munirah Mohd Noor & Nik Fakrulhazri Nik Hassan (2012), conducted a study for exploring the antecedents to the strengthening of job satisfaction. Further examination on differences between the work positions, work experience as related to job satisfaction is expected to form the basis for understanding the job satisfaction level of banking staff.

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CHAPTER -3

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PROBLEM STATEMENT OF THE STUDY

Job satisfaction is one of the causes of improve productivity it means if the employee is sufficiently satisfied in require manner than can positively contribute in the success of the organization.

Thus through this report to study whether the employees of public sector & private sector bank are satisfied with their job or not.

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OBJECTIVES OF OUR STUDY:-

1) To Measure the Job satisfaction Of Employees in banking sector.2) To compare the employee satisfaction of public sector bank with private sector bank.3) To Study the Job satisfaction Level of Female and Male.

RESARCH DESIGN

SAMPLING FRAME

We are Study on public and private bank in Gandhinagar city.

SOURCE OF DATA

Primary Method Secondary Method

DATA COLLECTION INSTRUMENT

Questionnaire

SAMPE SIZE 1OO Respondents

SAMPLING METHOD Convenient Method

HYPOTHESIS

Hypothesis 1: There is no association of job satisfaction and gender of employees of banks.

Hypothesis 2: There is no significant difference in job satisfaction of employees between public and private sector banks.

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LIMITATION Of THE STUDY Respondents’ opinions are dynamic; they keep changing from time to time.

The time taken for this study was also limited and it was the major constraint to complete the work entirely.

Some of the respondents might not have given the actual information due to fear psychosis of being disclosed.

The study was conducted with the limited number of bank branches due to time constraint. The results are confined to only some of the bank branches.

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CHAPTER - 4

DATA ANALYSIS

Female MalePublic Bank 16 34

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Private Bank 12 38Total 28 72

private bank public bank0

5

10

15

20

25

30

35

40

malefemleSeries3

INTERPRETATION:-Out of 100 Respondent there is 16 Female and 34 male in public bank. And 12 Female and 38 male in private bank.

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Work Experience Private Bank Public bank Less than 2 years 11 133-5 years 20 66-10 years 10 1211-15 years 3 4More than 16 6 11Total 50 46

1 2 3 4 50

2

4

6

8

10

12

14

16

18

20

work experianc private bankpublic bank

Interpretation of work experience graph:-

Out of 100 respondents there are 11 respondents are in less than 2 years, 20 are in 3 to 5 years, 10 are in 6 to 10 years, 3 are in 11 to 15 years, 6 are in more than 16 years in the private bank. And in public bank there are 13 respondents are in less than 2 years, 6 are in 3 to 5 years, 12 are in 6 to 10 years, 4 are in 11 to 15 years, and 11 respondents are in more than 16 years. And 4 respondents are not mentioned their year experience.

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Salary Private Bank Public Bank5000-15000 15 615001-25000 14 1625001-35000 9 835001-45000 2 6More than 45000 9 8Total 49 44

1 2 3 4 50

2

4

6

8

10

12

14

16

salaryPrivate bankPublic bank

Interpretation of Salary graph:-

Out of 100 respondents there is 15 respondent’s salary is between 5000-15000, 14 respondent’s salary is between 15001-25000, 9 respondent’s salary is between 25001-35000, 2 respondent’s salary is between 35001-45000 and 9 respondent’s salary is more than 45000 in the private banks. And in the public bank there are 6 respondent’s salary is between 5000-15000, 16 respondent’s salary is between 15001-25000, 8 respondent’s salary is between 25001-35000, 6 respondent’s salary is between 35001-45000, and there are 8 respondent’s are who is getting more than 45000 salary. And there are 7 respondents who is not mentioned their salary.

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Interpretation of T-test:-

It is seen from P-value of T-test we are failed to reject the null hypothesis hence it is proved that there is no significance difference between satisfaction level of male and female.

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FINDING

As per our research there are no difference of Employee satisfaction of public and private banking sector

There is no difference in satisfaction level of male and female. Out of 100% there is 16% Female and 34% male in public bank. And 12% Female and 38%

male in private bank. There is more experience person working in private bank. As we know the private banks are giving more salary compare to the public bank

 

CONCLUSION

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In the light of the findings, job security is one of the most important ingredients of job satisfaction. Secure job environment enhances the degree of job satisfaction. Management must create an environment of job security among employees.

Indians work with emotions, so any legal job contract will not motivate them. Instead, there should be a psychological or emotional bond between employees and the organization.

Due to the different social, economic and cultural backgrounds, the hire and fire system is not effective in India.

In fact, Indian culture is neither individualistic nor collective, rather it is oriented. Indians always accept effective leadership.

Apart from job security, management must provide job stability. There should be a challenging environment. The job structure should comprise horizontal as well as vertical growth. The job should provide enough scope for the employees in terms of promotion and transfer

BIBLIOGRAPHY47 | P a g e

www.google.com www.icicibank.comwww.hdfcbank.comwww.axisbank.comwww.kotakbank.comwww.sbi.co.inwww.bankofbaroda.comwww.bankofindia.comhttp://www.denabank.com

1. To Study Factors influencing job satisfaction of banking sector employees in Chennai, India, Research Paper. K. R. Sowmya1* and N. Panchanatham

2. International Journal of Advance Research inComputer Science and Management StudiesResearch Article / Survey Paper / Case StudyAvailable online at: www.ijarcsms.comJobSatisfaction of Bank Employees in Jorhat “A Comparative Study of Public & Private Sector Bank” Jutimala Bora

ANNEXURE

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Dear Participant,

This questionnaire is designed to assess your perception towards your job and the extent to which it affects your satisfaction as an employee. This survey is given to a few randomly selected banks. Your response and participation is very important to this study.

You will remain completely anonymous. All of your answers will be kept strictly confidential and will be used in combined statistical form. It will take 10-15 minutes to complete the questionnaire. Your prompt and honest response will be greatly appreciated!

DIMENSION Strongly disagree

Disagree

Neutral Agree Strongly agree

1. As per my requirement my pay is fair.

2. Comparing the salary for similar jobs in other organization. I feel my pay is better.

3. My pay is enough for providing necessary things in my life.

4. I have been getting promotion as par my qualification and experience.

5. I feel proud for working in this organization.

16. I think this organization treats its employees better than any other organization.

7. I feel that I have opportunity to present my problems to the management.

8. I have full confidence in the mgt of this organization.

9. Favoritism doesn’t have any role to play in this organization.

10. On the whole, I am satisfied with the general supervision in my department.

11. My supervisor behaves properly with me.

12. My superior keeps me informed about all policy/ happening of the organization.

13. My superiors take into account my wishes as well as long as work done.

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14. I feel that my job is reasonably secure as long as I do good work.

15. My present job is as per my ability/ qualification and experience.

16. I usually feel fresh at the end of the day’s work.

17. Working conditions in this organization is satisfactory.

18. My job has helped me to learn more skills.

19. On the whole, I feel have well or prospects or advancement in my job.

20. My co-workers will inform me of what happen in my department. When I was not on duty.

21. There is high team spirit in the work group.

22. I am glad to work with all my co-workers in my department.

23. I often ask the opinion of my co-workers who work in my unit.

24. Communication between me and my co-workers is free and open.

25. My organization gives opportunities for further career growth.

Demographic profile:

Name: ______________________________________________________

1. Age: _______ 2. Gender : Male Female

3. Designation : ____________________

4. Name of the bank :________________________________

5. How many years of total working experience? Less than 2 years - ,

3 - 5 years - 6-10 years - , 11-15 years - 16 years or more

6. Salary/Month- 5000-15000 15001-25000 25001-35000

35001-45000 More than 45000

7. Marital status

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Married Unmarried

Thank you for your time and cooperation.

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