Project report on_indian_bank_ppt
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Transcript of Project report on_indian_bank_ppt
PROJECT REPORT ON INDIAN BANK
Submitted by: Chetanpreet Singh MBA 2008-2010 Chitkara Institute of Engineering and Technology
INDIAN BANKING INDUSTRY
Phase 1
Phase 2Phase 3
SWOT ANALYSIS OF INDIAN BANKING INDUSTRY
Strengths:• BANKING REFORMS(CRR AND SLR)• DEVELOPED IT SECTOR(CBS)
Weaknesses:• MAJOR PORTION UNDER PSBS• HIGH AMOUNT OF NPAS
SWOT ANALYSIS OF INDIAN BANKING INDUSTRY
Oppurtunities:• LARGE AREA CONNECTIVITY(ATM)• DEVELOPMENT OF IT INDUSTRY
Weaknesses:• DOWNTURN IN THE INDIAN ECONOMY TO
CONTINUE TILL MAY 2010• COMPETITION WITH FOREIGN BANKS
PROFILE OF INDIAN BANK
INTRODUCTION
INDIAN BANK was established on 15th august 1907 with an authorized capital of Rs. 20 lakh and got nationalized in the year 1969.
Team of INDIAN BANK: 22000 dedicated staff Total Business: Rs. 1,24,413 crores Total branches: 1644 branches
Subsidiaries: • Indbank Merchant Banking Services Ltd • IndBank Housing Ltd. • IndFund Management Ltd
TOP MANAGEMENT
M S SUNDARA RAJAN
CHAIRMAN AND MANAGING DIRECTOR
A SUBRAMANIAN
EXECUTIVE DIRECTOR
AS BHATTACHARYA
EXECUTIVE DIRECTOR
BANK’S MISSION STATEMENT To be a “common man’s bank” to provide all
financial products and services to all our customers:
• Under one roof• At an affordable cost and• In a fair and transparent manner
INDIAN BANK TIE UPSTie up with HDFC Standard Life Insurance Company Ltd.United Life Insurance CompanySmall Industries Development Bank of India(SIDBI)Times online money
SWOT ANALYSIS OF INDIAN BANK
Strengths:Experienced employeesNationalised bankCBS operations
Weaknesses:Government Control Lack of technology Lack of managerial skills
SWOT ANALYSIS OF INDIAN BANK
Oppurtunities: Major Tie ups Diversification into insurance sectors Demographic shifts
Threats: Competition from foreign banks Private lenders Lack of positioning
Current Financial Scenario PARTICULARS 2007-08 2008-09 %age
increase/decrease
DEPOSITS 61045.95 72581.83 18.89%
ADVANCES 39838.71 51465.28 29.18%
INTEREST EARNED 5150.78 6830.33 32.60%
NET PROFIT 1008.74 1245.32 23.45%
EPS 22.66 28.10 24%
PROJECT
WORK STUDY OF COMPARISON OF LOAN RATES OF INDIAN BANK WITH OTHER
PLAYERS
OBJECTIVE OF THE STUDY
Aim of the study“To know about interest rates on loan products
and to analyse which player is most competent”
Objective of the studyTo have a comparative study of INTERST RATES To know CUSTOMER PREFERENCESTo know excellence of loan products of INDIAN
BANK
Comparison of interest rates on these products of loan has been done.
HOME LOANEDUCATION LOANCAR LOAN
Key Findings of Home Loan Indian bank is good in fixed rate of interest for higher credit
limit i.e. 11.50 % which is constant with respect o tenure of loan period.
A new monetary stimulus declared by the Reserve Bank of India include further cut in home loans, auto loans and other loan rates.
Lending rates on homes are changing very quickly because as the market is not stagnant.
Period of recession has upset the whole market and to meet the demands and to won back old economy Government of India is taking steps with respect to home loans.
Key Findings of Education LoanINDIAN BANK has constancy in this rate at 12
% which slightly changes by 0.25% in higher amount of loan.
Different bank has different way of setting loan interest.
Rate of interest on higher education is higher than other loan products.
Key Findings of Car Loan Car loan is moderate and near to 11% approx. Indian bank is good in long term and high
finance amount.Indian bank ranks 3rd in the row of car loan
preference by the customers while comparison with the other players.
Indian bank deals at high scale and have contacts with big players in this corporate world.
PROJECT
WORKING OF LOAN SECTION OF BANK BRANCH
OBJECTIVE OF THE STUDY
Aim of the study “To know how bank analyse the financial
position of the company while sanctioning loan”
Objective of the study• To know about analysis of the company by bank• To acquaint to the working of loan department in
a Bank branch • To know the bank’s policies to sanction loan
DETAILS Actual study done over the sanction of loan
to the ABC ltd. with its previous year balance sheets and Profit and loss account and also projected for 2010 Balance Sheet and P & L account...
FINDINGS OF FINANCIAL STATEMENTS• Financial Indicators like capital, sales,
debtors, net working capital, current ratio etc shows that ABC ltd. is in sound financial position.
• Financial requirement is calculated:i. By Gross sale methodii. Computation on the basis of 20% of salesiii. Computation with STBC Method
CONCLUSION Hence past trends of financial years of the firm
have analysed and show positive results thereof. This all justifies that the projected sales and balance sheet is true and fair and requests need for limit of Rs. 40 crores is genuine. Thus, limit is enhanced to Rs. 40 crores. Issue the sanction ticket stipulating the securities and other terms as per HO guidelines.
Assistant General Manager
• Know about the areas in which bank is weaker and in which they have to improve upon.
• To rank itself this report is beneficial.• Off loading burden of the existing employees of the Indian
bank.• It made clear to bank that which bank has good in what so
that to follow their strategy to make own goals for future years.
• Bank likely to accrue the benefit of summary of latest interest rates and current position of the Indian bank industry for increase in knowledge.
• While helping through the project norms and rules are reviewed by the bank officials which make them upto date.
LIMITATIONS• Analysis is only a means and not the end. The analysis
has been done on the basis of my own interpretations and upto best of my knowledge but every analyst have his or her own interpretations and suggestions.
• Only quantitative factors are taken into account while making the project not qualitative.
• The non-monetary factors are not taken into consideration
• The stipulated time was not sufficient to understand each and every aspect of the system but I have tried to balance and cover each aspect within the stipulated time.
• Restricted finance was also one of the limitations.• As to have an real life practical experience everything in
real and original is required which is not available due to confidential norms and rules which limits the study.
SUGGESTIONS• Return on equity has been declined from 20.9% in 2007-08 to
18.63% in 2008-09 to which bank has to work upon to retain its efficiency in working.
• As comparison with other banks INDIAN BANK’s developing rate is much lesser than other players. Expenditure on infrastructure is also less. Bank management have to taken under this problem so that progress should be in right order and direction.
• INDIAN BANK has also to spend money on advertisement. Commonly bank requires nominal or no advertisement because customers come to place of their convenience. But INDIAN BANK is not well known brand so it has to give advertisement as a tool of promotion.