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ABSTRACT
Theoretical knowledge without practical knowledge is of little value. In order to achieve
positive & concrete results along with theoretical concept the exposure of real life
situation existing in corporate is very much needed. To fulfill this need the management
course has a provision for the practical training program. I thank my institute to provide
us such opportunity having training period in our course so that students can have real
feeling of organization life.
The financial services sector and capital markets have a significant influence on how
Economies develop, principally through their role in allocating financial capital between
different economic activities, as well as through their own operations, not only do banks
Manage their own financial and sustainability performance, they are in a position to
influence Socio-economic and environmental performance in client organizations and
through their Depositing strategies. In this report, we examine whether and how banks
manage the corporate economic impacts of thiir core deposits activities.
The aim of this research is to explore whether banks account of the types of economic
Impacts arising from their deposit activities. It asks who the real beneficiaries of banks
deposit activity and whether banks take this into account in their core business decisions.
Specifically, it questions how some banks understand their economic impacts and
whether and how this informed the development and delivery of deposit products and
services. Accountability and BSR have developed a methodology through which
companies can begin to articulate and account for the economic impacts of their business
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This study explores whether and how banks understand and manage the economic
impacts of their products through product development, use and delivery of deposit
products on the communities that use them. This relates to both production-side impacts
might include the operations of bank branches, and might include employment, sourcing
form local suppliers and environmental impacts. While the impacts of these activities are
important, the most significant economic impacts are likely to accrue to customers and
the wider economy. Consumption-side economic impacts relate directly to the access to
finance debate, as well as questions that have arisen from whom bank take deposits. Most
attention on banks in this area has focused on project finance for large and
environmentally sensitive projects. Access to finance refers to the lack of availability to
finance to specific communities. These issues have largely defined the corporate
responsibility banks in the eyes of some major stake holders.
This report explores how some banks understand and account for their economic
contribution to society. For some, economic impact management is already an important
internal management tool and stakeholder engagement platform. For others, the value of
managing economic impact is clear, but the challenge is finding ways to do it, Ideally,
corporate management of economic impact allows company to better inform and engage
stakeholders on the broader debate on the role of the sector in society.
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The report examines what sustainability principles and standards mainstream banks have
adopted around the world, and the extent to which those standards capture the most
significant potential economic impacts of bank lending. The report sets out some of the
key framework issues and players driving banks to consider sustainability issues.
OBJECTIVE
The main objective of the study of the deposits schemes of the bank is to study what bank
provides to different type of customers as per their requirement in their deposits.
Because I was there in IndusInd Bank for 6 weeks and I saw different type of customers
there.
Some want fixed deposits, some wants services, some want more transactions intraday,
some want that to pick cash and deliver cash to their home as per their want. So this is
important in research study.
Significance
The significance of the study is that with this study I came to that what is actually going
in private sector banks and what is the difference in the services of private sector banks
and public sector banks, type of deposits and services and may more.
Scope
The scope of this study which is conducted by me is shimoga City. The method used by
me is pump late provided by bank and banks site www.indusindbank.com .
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RECOMMENDATIONS
There should be system like in foreign countries that employee on every counter
can deal with every customer, that is he can take deposit from him he cashed his
cheque.
Bank should increase in number of branches in all over India.
Number of ATM should be increased.
Number of employees for banking operation should be increased.
There should be more advertisement of the bank, because mostly people are not
aware about the name of the bank.
Bank should use some promotional strategies.
Area of the branch should be wide.
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Chapter -1:-
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INTRODUCTION TO STUDY
Customers
Time becomes the most important aspect looked over by the customer with the changing
life style, especially if we take about service industry, its importance increases by many
folds and same applies to advanced services regarding deposits schemes also. As soon as
customer walks down at the dealer points he doesnt wish to even waste a single minute
to cashed a cheque or for deposit money or withdraw with the Multi National Banks
entering in Indian Markets.
Banks
Service industry requires a lot of customer focus as customer is also involved in the
whole process and needs a special attention as well as fast and quality services if they
want to remain in the market. So the same applies to the banking industry as the customer
is very choosy in selecting a bank and which can give him fast and better services as well
as good customer interactions is preferred. So the improvement of personalized banking,
Internet banking, mobile banking, phone banking, doorstep banking, will ensure that the
customer gets fast Service in banks. So a compressed turn around time will lead to better
retention of customer and will increase the goodwill of the bank.
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Closure of Accounts
When the account is closed the amount is paid by cash or credited to the account of the
depositor. Repayment of deposits with maturity value above Rs.20,000/- shall be made
by credit to an account or by an account payee cheque (as per law).
Deposit schemes
A deposit account is a current account, savings account, or other type of bank account, at
a banking institution that allows money to be deposited and withdrawn by the account
holder. These transactions are recorded on the banks books, and the resulting balance is
recorded as a liability for the bank, and represent the amount owed by the bank to the
customer. Some banks charge a fee for this service, while others may pay the customer
interest on the funds deposited.
Major types
Savings accounts: Accounts maintained by retail bank that pay interest but cannot
interest, and sort notice (or no notice) required for withdrawals. In the United
States, it is a style of instant access deposit subject to federal savings account
regulations, such as a monthly transaction limit.
Time deposit: A money deposit at a banking institution that cannot be withdrawn
for a preset fixed term or period of time. When the term is over it can be
withdrawn or it can be rolled over for another term. Generally speaking, the longer
the term the better the yield on the money.
Current account: This account is mainly for business class people. The main
benefit of this account is that the account holder can make transactions in his/her
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Indian banks starts this account. On this account holder get the benefit of saving
and fixed account. In this account holder can specify to his bank that this much
amount he want to maintain in saving account and above that limit his money
should be transferred to fixed deposit account. But the main benefit of this account
is that holder can withdraw any money that want to withdraw. And this facility is
not available in fixed deposit account.
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Chapter - 2:-
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Banking in India originated in the last decades of the 18th century. The oldest bank in
existence in india is the State Bank of India, a government-owned bank that traces its
origins back to June 1806 and the is the largest commercial bank in the country. Central
banking is the responsibility from the then Imperial Bank of India, relegating it to
commercial banking functions. After Indias independence in 1947, the Reserve Bank
was nationalized and given broader powers. In 1969 the government nationalized the 14
largest commercial banks, the government nationalized the six next largest in 1980.
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Currently, India has 88 schedule commercial banks (SCBs) 27 public sector banks (that
is with the Government of India holding a stake), 31 private banks (these do not have
government stake, they may be publicly listed and traded on stock exchanges) and 38
foreign banks. They have a combined network of over 53,000 branches and 17,000
ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks
hold over 75 percent of total assets of the banking industry, with the private and foreign
banks holding 18.2% and 6.5% respectively.
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period failed the depositors lost money and lost interest in keeping deposits with banks.
Subsequently, banking in India remained the exclusive domain of Europeans for next
several decades until the beginning of the 20th century.
Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire
dEscompte De Paris opened a branch in Calcutta in 1860, and another in Bombay in
1862, branches in Madras and Pondichery, then a French colony, followed. HSBC
established itself in Bengal in 1869. Calcutta was the most active trading port in India,
mainly due to the trade of the British Empire, and so became a banking center.
The Bank of Bengal, which later became the State bank of India.
The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in
1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established
in Lahore in 1895, which has survived to the present and is now one of the largest banks
in India.
Around the turn of the 20th century, the Indian economy was passing through a relative
period of stability. Around five decades had elapsed since the Indian Mutiny, and the
social, industrial and other infrastructure had improved. Indians had established small
banks, most of which served particular ethnic and religious communities.
The presidency banks dominated banking in India by there were also some exchange
banks and a number of Indian joint stack banks. All these banks operated in different
segments of the economy. The exchange banks, mostly owned by Europeans,
concentrated on facing foreign trade. Indian joint stock banks were generally under
capitalized and lacked the experience and maturity to compete with the presidency and
exchange banks. This segmentation let Lord Curzon to observe.
The period between 1906 and 1911, saw the establishment of banks inspired by the
Swadeshi movement. The Swadeshi movement inspired local businessmen and political
figures to found banks of and for the Indian community. A number of banks established
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then have survived to the present such as Bank of India, Corporation Bank, Bank of
Baroda, Canara Bank and Central Bank of India.
The fervor of Swadeshi movement lead to establishing of many private banks in
Dakshina Kannada and Udupi District which were unified earlier and known by the name
South Canara (south Kanara) district. Four nationalized banks started in this district and
also a leading private sector bank. Hence undivided Dakshina Kannada district is known
as Cradle of Indian Banking.
Years
1913
1914
1915
1916
1917
1918
Post-independence
The partition of India in 1947 adversely impacted the economies of Punjab and West
Bengal, paralyzing banking activities for months. Indias independence marked the end
of a regime of the laissez-faire for the Indian banking. The Government of India initiated
measures to play an active role in the economic life of the nation, and the Industrial
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Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This
resulted into greater involvement of the state in different segments of the economy
including banking and finance. The major steps to regulate banking included.
In 1948, the Reserve Bank of India, Indias central banking authority, was nationalized,
and it became an institution owned by Government of India.
In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of
India (RBI) to regulate, control, and inspect the banks in India.
The Banking Regulation Act also provided that no new bank or branch of an existing
bank could be opened with a license from the RBI, and no two banks could have common
directors.
However, despite these provisions, control and regulations, banks in India except the
State Bank of India, continued to be owned and operated by private persons. This
changed with the nationalization of major banks in India on July, 1969.
Nationalization
By the 1960s, the Indian banking industry has become an important tool to facilitate the
development of the Indian economy. At the same time, it has emerged as a large
employer, and a debate has ensued about the possibility to nationalize the banking
industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the
GOI in the annual conference of the All India Congress Meeting in a Paper entitled
Stray thoughts on Bank Nationalization. The paper was received with positive
enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance
and nationalized the 14 largest commercial banks with effect from the midnight of July
19, 1969. Jayaprakash Narayan, a national leader of India, described the step as a
masterstroke of Political Sagacity. Within two weeks of the issue of the ordinance, the
Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking)
Bill, and it received the presidential approval on 9 August, 1969.
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Liberalization
in the early 1990s, the then Narsimha Roa government embarked on a policy of
liberalization , licensing a small number of private banks . these came to be known as
new generation tech savvy bank , and included global trust bank ( the first of such new
generation banks to set up ) which later amalgamated with oriental bank of commerce ,
axis bank ( earlier as uti bank ),icici bank and hdfc bank .this move along with the rapid
growth in the economy of india . revitalized the banking sector in india , which has seen
rapid growth with strong contribution from all the three sectors of banks,namely,
government banks , private banks anf foreign banks .
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For foreign banks , total assets , deposits and advances grew at CAGR of 16.09% ,
16.2 % and 17.02 % respectively .
The higher growth rates among private banks is partly explained by the base
effects as well as by the greater lending opportunities in the consumer loan
segment , support by the rapid roll-out of a pan india branch network and equity
infusions to fund the growth .
Ananda bhoumik senior director , fitch ratings india said .
Indias largest private sector bank ,ICICI bank showed a 19.15% CAGR of
advances during the study period .
On the other hand SBI , the largest commercial bank also showed a 7.22 % CAGR
of total assets as against 7.03 % and 16.71 % o deposits and advances
respectively during the last five years .
But Citibank N.A , the largest foreign bank in terms of deposits showed a 16.6 %
CAGR of total assets as against 12.86% and 16.52% of deposits and advances
respectively bw 2001 02 to 2005-06 .
In actual value terms, the total assets of 20 private sector banks steadily climbed
up from rs 2,32,697 crore in the same period .
The total advances of these banks also saw a forward momentum from rs 1,37,405
crore to rs 4,05,920 crore in the same period .
Among the 20 private banks , the highest CAGR in total assets was seen in kotak
Mahindra bank (47.35%) followed by UTI bank (28.19) and HDFC bank (25.31%)
.
The total asstes of kotak Mahindra bank steadily rose from 1464.63 crore in 2001 02 to 10,175.11 crore in 2005-06 . similarly in the case of foreign banks , the
highest CAGR in total assets was seen Barclays bank (33.99%) and ABN bank
NV (25.89%).
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1. Allahabad Bank
2. Hsbc bank
3. Bank of Baroda
4. Bank of India
5. Bank of Maharashtra
6. Citi bank
7. Canara Bank
8. State Bank of India
9. Icici bank
10. State Bank of Hyderabad
11. State Bank of Mysore
12. Dena Bank
13. IDBI Bank
14. Indian Bank
15. Indian Overseas Bank
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MARKET SHARE OF BANKS 2013: At a recent event to open a branch of Kotak Mahindra Bank in Mumbai, the
lender's founder Uday Kotak summed up the challenges facing the Indian banking
sector in the shortest possible way: "In a bank's balance sheet, liabilities are
actually assets and assets are liabilities." He then explained his statement. A bank
lists the current and savings account deposits as liabilities on its balance sheet.
These low-cost deposits are helping banks maintain a healthy margin in the current
worsening economic scenario. On the assets side of the balance sheet are corporate
and retail loans that earn interest for banks. But, with many borrowers unable to
repay, these assets are turning into liabilities.
Indian banks have a lot of things going against them currently, from a slowing
economy and rising loan defaults to allegations of money laundering. A few banks
have, however, faced the headwinds strongly.
After a gap of five years, HDFC Bank has emerged as the best large bank because
of good asset quality, high loan growth, a healthy capital adequacy ratio and an
improvement in returns on capital employed. YES Bank remains the best midsized bank for the second year running.
For other banks, challenges are only multiplying. The asset quality of banks has
been deteriorating for the past two years as economic growth slipped to its lowest
level in a decade while inflation and interest rates remained high. Gross bad loans
have spiked to nearly four per cent of total lending from 2.36 per cent three years
ago. The Reserve Bank of India estimates gross bad loans to touch 4.4 per cent by
the end of the current fiscal year.
Bank (PNB), Central Bank of India and Allahabad Bank all have outstanding
restructured assets at more than 10 per cent.
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The capital adequacy ratio at many state-run banks such as PNB, Bank of India,
Andhra Bank and Union Bank of India is closer to the RBI's minimum norm of
nine per cent. This leaves them with little room to breathe easy.
Banks such as Federal Bank, South Indian Bank and City Union Bank are losing
out inmarket share to their new age counterparts in the private sector, said a study
which alsonamed ICICI Bank and SBI as the best banks in their respective
categories.
.However, old-time private sector banks continue to fare better in the growth of
net profits, said research company Dun & Bradstreets report on Indias top
banks.
The D&B report has found that public sector banks accounted for 74 per cent of
total deposits, 73 per cent of total advances and 64 per cent of aggregate net profits
among the scheduled commercial banks. On the other hand, the share of new age
private sector banks was in the range of 15-17 per cent, it said.
The D&B report said the annual growth rate of old-time private sector banks stood
at 7.1 per cent in assets, six per cent in deposits and 12 per cent in advances.
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Banks such as Federal Bank, South Indian Bank, City Union Bank and Karnataka
Bank are old-time private sector banks, while ICICI Bank, HDFC Bank and Axis
Bank are the new-age banks.
New age private sector banks dominated the growth league tables with an average
y-o-y growth in assets at 38.7 per cent, deposits at 38.8 per cent and advances at
39.9 per cent, there port said.
However, old-time private sector banks fared better in terms of profitability which
stood at an average 30%.
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COMPANY PROFILE
IndusInd Bank Limited is a Mumbai based Indian new generation bank, established in
1994. The bank offers commercial, transactional and electronic banking products
and services .
Indusind Bank was inaugurated in April 1994 by then Union Finance
Minister Manmohan Singh. Indusind Bank is the first among the new-generation private
banks in India.
The bank started its operations with a capital amount of Rs. 1 billion among which Rs.
600 million was donated by the Indian Residents and Rs. 400 million was raised by the
Non-Resident Indians. The bank has specialized in retail banking services and
continuously upgrades its support systems by introducing newer technologies. It is also
working on expanding its network of branches all across the country along with meeting
the global benchmark. According to the bank, its name is derived from the rich and
vivid Indus Valley Civilisation.
IndusInd Bank has 638 branches, and 1238 ATMs spread across 392 geographic
locations of the country as on 30 September 2013 with 2 representative offices, one each
in London and Dubai. Mumbai has the maximum number of bank branches followed
by New Delhi and Chennai. The bank has also proposed to double the branches count to
1200 by March 2017.
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VISION
Engaged with all our stakeholders and will deliver sustainable and compliant
returns.
MISSION
We will consistently add value to all our stakeholders and emerge as the best-in-class in
the chosen parameters amongst the comity of banks, by doubling our profits, clients and
branches within the next three years.
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OBJECTIVE
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BOARD OF DIRECTORS
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The Bank's Directors have pleasure in presenting the Twentieth Annual Report covering
business and operations of the Bank, together with the audited financial accounts for the
year ended March 31, 2014.
Despite the deceleration in growth rate in the Indian economy and a challenging
macroeconomic environment, the Bank's deposits grew during the year by 11.80% and
advances increased by 24.33%.
The focus during the year continued to be on increasing earnings from core banking
business, and on strengthening the fee income streams.
Operating Profit (before Depreciation and Provisions and Contingencies) during the year
under review rose by 40.84% to Rs. 2,694.11 crores, from the level of Rs. 1,912.89 crores
in the previous year.
The Bank's Net Profit, after considering necessary Provisions and Contingencies and all
expenses, was higher by 32.68% at Rs. 1,408.02 crores as against Rs. 1,061.18 crores in
the previous year.
Dividend
The Earning per Share (EPS) of the Bank has risen to Rs. 26.85 during the year 201314,
from Rs. 21.83 in the previous year.
Considering the overall improvement in performance, the Directors recommend Dividend
of Rs. 3.50 per equity share of Rs. 10/ each for the year ended March 31, 2014.
(Dividend for the year 201213 was Rs. 3.00 per equity share of Rs. 10/ each).
The Bank shall pay tax on the amount of Dividend paid, which will be taxfree in the
hands of the shareholders
Financial Performance
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During the year 201314, the Bank continued to leverage its business on the three
performance planks of Productivity, Profitability and Efficiency and focused on
scalability, which helped to significantly improve its profitability.
The Bank's Total Income grew by 21.54% to Rs. 10,144.06 crores from Rs. 8,346.19
crores, backed by improved business.
The sharp rise in profitability was the result of a healthy increase in core earnings of the
Bank through Net Interest Income (NII) and robust growth in NonInterest Income
streams. Net Interest Income improved by 29.46% to Rs. 2,890.71 crores from Rs.
2,232.86 crores while NonInterest Income rose to Rs. 1,890.53 crores from Rs. 1,362.96
crores, a rise of 38.71%.
The year 201314 has been one of sustained hardening of interest rates and shrinking of
lending margins. The Yield on Advances dropped marginally to 13.56% during the year,
the Cost of Deposits reduced to 8.17% as against 8.49% in the previous year (decrease of
32 basis points). The Net Interest Margin (NIM) increased to 3.71% during the year, as
compared with 3.43% in 201213, owing to reduction in the total cost of funds.
Fee and Miscellaneous Income at Rs. 1,890.53 crores showed sustained annual growth.
Core Fee Income such as Commission, Exchange, Fees on distribution of thirdparty
products and earnings from foreign exchange business, etc. grew by 29.89% to Rs.
1,609.72 crores from the level of Rs. 1,239.34 crores last year.
The Bank expanded its branch network rapidly to reach 602 branches, as against 500
branches at the beginning of the year. Revenue per employee during the year remained
steady at Rs. 31 lakhs.
Quality of the Bank's assets remained stable, with Net NonPerforming Assets (Net
NPAs) at 0.33% as at March 31, 2014 from 0.31% last year. The Provisioning Coverage
Ratio (PCR) stood at 70.35%, as compared to 70.13% in the previous year.
On the liabilities side, the emphasis continued to be on broadbasing the deposit franchise.
This task was accomplished by leveraging the expanded branch network and the pan
India marketing setup, offering innovative products and service propositions, sustained
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promotional campaigns, and enabling customers with alternate channels like ATMs,
Internet Banking, etc.
The Bank introduced several new products and
services
for its chosen client segments through its Transaction Banking Group and Global
Markets Group. Deeper understanding of client requirements and the ability to put
technology to efficient use formed the bedrock on which new products and service
propositions were created.
The Bank kept up its focus on deepening as well as strengthening the feebased income
streams, resulting in a smart growth in noninterest income. Going forward, the Bank
plans to upscale the growth momentum through further enhancements in diverse revenue
streams such as Foreign Exchange business, Investment Banking, structured Trade and
Treasury products, distribution of third party products like Mutual Funds and Insurance,
international remittances, Bullion operations and Transaction Banking activities,
including the Depository business and the Commodity Market business.
Share Capital
During the year under review, the Bank allotted 27,68,778 shares pursuant to the exercise
of Options under its Employees Stock Option Scheme, 2007.
Pursuant to the above, the Paidup Share Capital and Share Premium Account increased
by Rs. 2.77 crores and Rs. 32.39 crores respectively.
As at March 31, 2014, the Paidup Equity Capital of the Bank consisted of 52,54,46,484
shares of Rs. 10/ each, excluding forfeited shares.
Tier II Capital
The Bank did not raise any Tier II Capital during the year.
Subsidiary Company
ALF Insurance Services Pvt. Ltd., the Bank's subsidiary company which was set up to do
the business of Insurance Corporate Broking, is currently under voluntarily winding up,
and the process is expected to be completed soon.
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Directors
Mr. Ajay Hinduja, Nonexecutive Director, retires by rotation, and being eligible
offers himself for reappointment.
Mr. T. Anantha Narayanan was appointed "Additional Director" in the category of
"NonExecutive Independent" by the Board at its meeting held on March 25, 2014, and
shall hold office up to the date of the ensuing Annual General Meeting (AGM).
Upon implementation of the Companies Act, 2013 w.e.f. April 1, 2014, it is required to
obtain approval of the shareholders for appointment of all the Independent Directors, viz.,
Mr. S.C. Tripathi, Mr. Ashok Kini, Mrs. Kanchan Chitale, Mr. Vijay Vaid and Mr. T.
Anantha Narayanan, at the ensuing AGM.
Dr. T. T. Ram Mohan, who was associated with the Bank as "Independent Director"
since January 16, 2006, ceased to hold office w.e.f. January 16, 2014, on completion of
the maximum permissible tenure of 8 years laid down in Section 10A(2A) (i) of the
Banking Regulation Act, 1949.
The Directors wish to place on record their sincere appreciation for the valuable
contributions made by Dr. T. T. Ram Mohan towards the deliberations in the Board
Meetings during his tenure as Director of the Bank.
Mr. R. S. Sharma, who was associated with the Bank as "Independent Director" since
April 19, 2012, expressed his desire to step down from the Board owing to professional
preoccupations. Mr. Sharma's resignation was accepted by the Board on August 7, 2013.
The Directors wish to place on record their sincere appreciation for the valuable
contributions made by Mr. Sharma towards the deliberations in the Board Meetings
during his tenure as Director of the Bank.
Mr. R. Seshasayee, Chairman Members of the Bank had, in the 19th Annual General
Meeting held on June 28, 2013, approved the reappointment of Mr. R. Seshasayee as
Parttime Nonexecutive Chairman for a period of two years, w.e.f. July 24, 2013,
subject to approval of Reserve Bank of India (RBI).
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RBI have since approved the reappointment of Mr. R. Seshasayee for a period of two
years w.e.f. July 24, 2013.
Mr. Romesh Sobti, Managing Director & CEO Members of the Bank had, in the
19th Annual General Meeting held on June 28, 2013, approved the reappointment of
Mr. Romesh Sobti as Managing Director & CEO for a period of three years w.e.f.
February 1, 2014, subject to approval of RBI.
RBI have since approved the reappointment of Mr. Romesh Sobti as Managing Director
& CEO of the Bank for a period of one year w.e.f. February 1, 2014.
Brief profiles of the Directors seeking appointment / reappointment at the ensuing AGM
have been furnished in the Report on Corporate Governance under the section titled
"Board of Directors".
Auditors
M/s B S R & Co. LLP, Chartered Accountants, Statutory Auditors, who have audited the
accounts of the Bank for the year 201314, shall retire at the conclusion of the ensuing
Annual General Meeting and are eligible for reappointment.
Members are requested to consider their reappointment and to authorise the Board to fix
their remuneration. Reappointment of the Statutory Auditors is subject to approval of
the Reserve Bank of India, which has been received.
Independent Auditor's Report
M/s B S R & Co. LLP, Chartered Accountants, have audited the accounts of the Bank for
the year 201314, and their Report is annexed. There are no qualifications in the
Auditor's Report.
Statutory Disclosures
Information, wherever required under the Banking Regulation Act, 1949 or the
Companies Act, 1956 as applicable to a banking company, has been laid out in the
schedules attached and forms part of the Balance Sheet and the Profit and Loss Account.
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There are no material changes and commitments affecting the financial position of the
Bank, which have occurred between the end of the financial year 201314 to which the
Balance Sheet relates and the date of this Report.
Considering the nature of activities as an entity in the financial services sector, the
provisions of Section 217(1)(e) of the Companies Act, 1956 relating to conservation of
energy and technology absorption do not apply to the Bank. The Bank has, however,
made optimum use of information technology in its operations.
The Bank had 15,590 employees on its rolls as on March 31, 2014. The information
required under Section 217(2A) of the Companies Act, 1956 and the Rules made
thereunder is given in the Annexure appended hereto and forms part of this Report. In
terms of Section 219(1)(iv) of the Act, the Report and Accounts are being sent to the
shareholders excluding the aforesaid Annexure. Any shareholder interested in obtaining a
copy of the said Annexure may write to the Company Secretary at the Secretarial &
Investor Services Office of the Bank.
Business Responsibility Report
The Securities & Exchange Board of India, vide their circular dated August 13, 2012
have mandated top 100 listed entities, based on their market capitalization on BSE
Limited and National Stock Exchange of India Ltd., to include the 'Business
Responsibility Report' (BRR) as part of the Annual Report. Accordingly, the Business
Responsibility Report of the Bank has been enclosed as an Annexure I to this Report.
Employee Stock Option Scheme
The Bank had instituted Employee Stock Option Scheme (ESOS 2007) to enable its
employees, including Wholetime Directors, to participate in the future growth of the
Bank. Under the Scheme, Options can be granted, which upon exercise could give rise to
the issuance of a number of shares upto 7% of the issued equity capital of the Bank from
time to time. The Employee Stock Option Scheme is in accordance with the Securities
and Exchange Board of India (Employee Stock Option Scheme and Employee Stock
Purchase Scheme) Guidelines, 1999. The eligibility and number of Options to be granted
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to an employee is determined on the basis of criteria laid down in the Scheme and is
approved by the Compensation Committee of the Board of Directors.
An aggregate of 3,10,18,700 Options, comprising 5.90% of the Bank's equity capital,
have been granted under the Scheme. Statutory disclosures as required by the SEBI
Guidelines on ESOS are given at 'Annexure II' in this Report.
Corporate Governance
The Bank continues its endeavour to adopt the best prevalent Corporate Governance
practices.
A separate Report on the status of implementation of Corporate Governance, as required
under Clause 49 of the Listing Agreement with Stock Exchanges, is included in the
section on 'Corporate Governance' which forms part of this Report. M/s Bhandari &
Associates, Company Secretaries have certified that the conditions of Corporate
Governance as stipulated in Clause 49 of the Listing Agreements with the Stock
Exchanges have been complied with by the Bank. A copy of their Certificate is also
attached at 'Annexure III' to this Report.
Directors' Responsibility Statement
Pursuant to the provisions of Section 217(2AA) of the Companies Act, 1956, the
Directors hereby certify and confirm that:
(i) in the preparation of the Annual Accounts, the applicable Accounting Standards have
been followed along with proper explanation relating to material departures;
(ii) the Directors have selected such accounting policies and applied them consistently
and made judgements and estimates that are reasonable and prudent so as to give a true
and fair view of the state of affairs of the Bank as at March 31, 2014 and of the profit of
the Bank for the year ended on that date;
(iii) the Directors have taken proper and sufficient care for the maintenance of adequate
accounting records in accordance with the provisions of the Companies Act, 1956 and
Banking Regulation Act, 1949 for safeguarding the assets of the Bank and for preventing
and detecting frauds and other irregularities; and
(iv) the Annual Accounts have been prepared on a 'going concern' basis.
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SAVING
NRI
PRIVELIGE
CLASSIC
NO FRILL
DEMAT
SWEEP
NRO
NRE
CURRENT
FIXED DEPOSIT
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Specially designed to
build and secure your childs future
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At IndusInd Bank, we understand your varied needs as a parent getting the best
education for your children,savings for their future, ensuring their good health and habits
you always wish you had the time and resources to give them the best they deserve.
As a Bank we feel a strong responsibility in securing your financial future not just by
offering you a portfolio of savings and investment solutions for your family, but by also
bringing to you a treasure-chest of knowledge-based solutions to help your children
learn smartly and sow the seeds of intellectual wealth.
Knowledge is Wealth
Towards this end, we have tied-up with Educational Initiatives (EI), Indias leading
educational diagnostic tests provider for students in classes 3 to 10. EI is an educational
research and services organization working with more than 2 lakh school children
annually, providing strength/weakness analysis at a subject/skill level, benchmarking
with other students nationally and delivering online improvement programs that your
child can avail of as per his/her convenience and need.
For our privileged customers, IndusInd and EI bring the following attractive
offers:
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ASSET Online is a special test which helps students improve. Unlike regular tests which
merely try to find out how much a child can reproduce (or has memorized), this test
measures how well a student has understood concepts and gives detailed feedback on the
same, including comparisons with peers to help him/her improve. The test is available
online and can be taken by students of classes 3-10 in Maths, Science and English.
REGULAR SAVINGS
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Multicity Operation
Customer would be able to operate the account from any of our branches directly
Statements
Debit Card
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Product Features:
>> Re.1/- to open account, as minimum balance
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INDUSIND EDGE
BUSINESS ACCOUNT
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IndusInd Bank understands the nature of your business needs and has tailored
products to meet them. This product will prove to be an ultimate value for money
considering that you will get loads of benefits against a nominal minimum balance
requirement.
Anywhere Access
Payment Strength
Payable At Par Cheques
Free Demand Drafts
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Experience the power of express fund transfer through Real Time Gross Settlement
(RTGS) and National Electronic Funds Transfer (NEFT). As an Indus Edge
customer, RTGS and NEFT services are available to you free of cost, enabling
funds transfer to specified locations and branches of select banks.
Cash Withdrawal at Non-Home Location
Collection Strength
Anywhere Collection
Outstation Collection
Cash Deposit
Other Services
Doorstep Banking
IndusInd Doorstep Banking enables you to have cheques and cash picked up or
delivered from / to your doorstep on a daily basis or on call basis, at a time
convenient to you. How about that for saving time?!
Internet Banking (Indus net)
Phone Banking
Long Banking Hours
Mobile Banking and Alerts.
International Debit Card
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INDUS PRIME
SCHEDULE OF CHARGES
Monthly ADB
1,00,000
Balance Non-Maintenance
Charge
Rs. 1,000 pm
Payments
Cheque Book (At Par)
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Free
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Free
Free
DD / PO (On IndusInd)
Free
DD (Correspondent Bank)
Free
DD (Non-Correspondent Bank)
DD / PO Cancellation /
Duplicate(Only for IndusInd)
DD / PO Revalidation (For
IndusInd)
Free
Rs. 1/1000
NEFT
Free
RTGS
Free
ECS Payments
Free
Collections
Local cheque/DD/PO (Home
Location)
Free
Free
Free
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NEFT
Free
RTGS
Free
Doorstep Banking*
Cash Delivery / Pickup (Per
Call)
Till 2 lacs
- 5 lacs
Rs. 250
-10 lacs
Rs. 400
10 - 20 lacs
Rs. 800
20 - 50 lacs
Rs. 1,100
50 acs
Contact Branch
Others
ECS Return
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Rs. 200
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Rs. 50
Rs. 100
Rs. 150
Free
Quarterly
Dormant Account
Free
Rs. 250
Rs. 200
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International Debit Card with access to 1700 ATMs without any charges
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Internet Banking
DDs and Pos will be issued free of charges, if it is not out of cash remittance
FIXED DEPOSIT
You have worked hard to earn your money. Now, let your money work hard to
earn for you with IndusInd Bank Fixed Deposits.
The BENEFITS of fixing your deposits with IndusInd Bank
> Flexible range of tenures to suit your investment plans
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Eligibility
IndusInd Bank Fixed Deposits can be opened by Individuals, HUFs, Sole
Proprietorships, Partnership Firms, Ltd. Companies, Guardians on behalf of
Minors, Societies, Clubs, Trusts and Associations.
Tenure
15 days up to 10 years.
Amount
> The initial minimum amount to invest is INR 10000.00
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cheque payment
cumulative value of
e-payment for mobile top-up
tranaction p.m.
withdrawals @ indusund atm
tranaction p.m.
Debit card purchase
E-registeations
What is RTGS?
Real Time Gross Settlement (RTGS) System is set up, operated and maintained
by Reserve Bank of India to enable funds settlement on real-time basis across
RTGS enabled banks in the country. This is the fastest possible money transfer
system through the banking channel. The RTGS system is primarily for large
value transactions. The minimum amount to be remitted through RTGS is Rs.1 lakh.
What is NEFT?
National Electronic Funds Transfer (NEFT) system is a nation wide funds
transfer system to facilitate transfer of funds from any NEFT enabled bank
branch to any other NEFT enabled bank branch. Funds transferred under NEFT
will be credited to the beneficiarys account on the same day and there is no
minimum or maximum amount for remittance through NEFT.
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CASA RATIO :-
Chart Title
70,000
60,000
50,000
Q2FY15
40,000
Q2FY14
30,000
Q1FY15
20,000
Y-D-Y
10,000
Q-o-Q
0
SA Deposits
CA Deposits
Term Deposits
Deposits
CASA Ratio
Strong saving deposit growth and pick up in CA deposits led 54bps uptick in
CASA ratio Q-o-QDeposits grew by 24% Y-o-Y and 3% Q-o-Q above the
industrys average growth of 14% Y-o-Y. CASA ratio increased 54bps Q-o-Q
largely attributable to strong growth in saving deposits (Up 8% Q-o-Q) and healthy
growth in current account deposits (up 2% Q-o-Q). The bank commendable
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CHAPTER-3
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Survey design:
The study is a cross sectional study because the data were collected at a single point of
time. For the purpose of present study a related sample of population was selected on the
basis of convenience.
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Research Period:
Research work is only carried for 5 or 6 weeks.
Research Instrument:
This work is carried out through self-administered questionnaires. The questions included
were open ended, dichotomous and offered multiple choices.
RESEARCH METHODOLOGY
Step1:
Program Planning
Step 2:
Step 6:
Start Survey
Research
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Step 5:
Methodology
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Step 3:
Data Collection:
The data, which is collected for the purpose of study, is divided into 2 bases:
Primary Source: The primary data comprises information survey of analysis on deposit
scheme of Indusind Bank. The data has been collected directly from respondent with the
help of structured questionnaires.
Secondary Source: The secondary data was collected from internet, annual report of
bank year(2012-20013) and the pump late provided by the bank.
Data Analysis:
The data is analyzed on the basis of suitable tables by using mathematical techniques.
The technique that I have used is bar, pie, column ,surface, doughnut technique.
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This chapter is about information sources used to make project. Chapter provides
information about Research Methods used by me during summer training program to
prepare this project report.
Information collected for this project is from most reliable and best possible means
available to me during my training course .it is all about to take deposit from customer
and provide him services as fast as possible. Project give due importance to legal
framework for deposit schemes.
Limitations
In attempt to make this project authentic and reliable, every possible aspect of the topic
was kept in mind. Nevertheless, despite of fact constraints were at play during the
formulation of this project. The main limitations are as follows:
Main limitation of deposits schemes is that from the point of view of income tax
department is that the holder of the account when make a fixed deposit in the bank with
Rs. 2lac and got rate of interest of 7.5% for one year. With this his annual income from
interest is Rs. 15000.
But instead of this bank or the relationship officers of the bank gave suggestion that how
account holder can save tax.
The account holder can make fixed deposits in 2 parts 1lac-1lac and can save tax, so this
is the main limitation of the deposits schemes.
Due to limitation of time only few people were selected for the study. So the
sample of consumers was not enough to generalize the findings of the study.
The main source of data for the study was primary data with the help of selfadministered questionnaires. Hence, the chances of unbiased information are less.
People were hesitant to disclose the true facts.
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100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
yes
no
Source :
from
survey
method
I had asked question from 20 people resident of shimoga, regular visitors in IndusInd
bank.
In my 1st question all the customers has account In the IndusInd bank.
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saving
current
nri
any other
Source :
from
survey
method
10 persons has saving account, 3 has current account, 1 has nri account, 1 has f.d.
Source :
from
survey
method
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7 persons has started their account from less than one year, 8 customers from above 5
years And 2 from 3-5 years, and 3 from 1-3 years.
Source :
from
survey
method
0
businessman
employee
student
any other
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10
8
8-10
6-8
4-6
2-4
0
1lac-2lac
0-2
2lac-3lac
3lac-above
Source :
from
survey
method
10
5
Series 3
Series 2
0
0-2500
2500-5000
Series 1
5000-above
Source :
from
survey
method
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9
8
7
6
5
4
3
2
Source :
from
survey
method
1
0
highly disagree
disagree
netural
agree
highly agree
10
0
cheque alert
home
banking
overdraft
facility
Source :
from
survey
method
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8
7
6
5
4
3
2
1
Source :
from
survey
method
0
demat
recurring
sweeep
yes
no
Source :
from
survey
method
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YES
NO
Source :
from
survey
method
11-NO, 9-YES
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CHAPTER-4
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FINDINDS :On the whole I would like to summarize my whole of the project that the deposit schemes
of the IndusInd bank are very good. The schemes are of that kind that a businessman can
maintain his account over here and also a laborer can maintain his account here. bank
has account for NRI- (NRO and NRE)persons and for a student- no frill account in which
they provide free atm, free first cheque book, internet banking, mobile banking, phone
banking. Bank has account which starts from rs.2500 that is Indus classic. From 5000
Indus privilege. Society/TRUST zero balance account. Current account with exelent
facilities. Fixed deposit with very good rate of interest. Demat account for online share
purchasing. Young saver account for children. Indus money for long term investment
purpose. Sweep account for taking the benefits of both saving and fixed deposit at the
same time in one account.
Conclusions
The first of all I would like to say that the time that I had spend in IndusInd bank will
always be in my mind because in my training period I came to know that how a private
bank provide service to customer was good . Weather it is about dealing with customers,
timing every thing. The project involves valuation of indusind Bank. The methodology
followed is Target Pricing, which including estimating growth rate by regression on
historical sales to forecast next year sales, earning and Profit and Loss account. Then EPS
is calculated which is multiplied to Historical P/E to forecast intrinsic value of share.
So at last I want to say that service is exelent here, dealing is also exelent, and deposit
schemes are amazing.
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Recommendation/suggestions
There should be system like in forgien countries that employee on every counter can
deal with every customer, that is he can take deposit from him he cashed his cheque.
Bank should increase in number of branches in all over India.
Number of ATM should be increased.
Number of employees for banking operation should be increased.
There should be more advertisement of the bank, because mostly people are not aware
about the name of the bank.
Bank should use some promotional strategies.
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APPENDIX
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QUESTIONNAIRE
DEPOSITS SCHEMES OF INDUSIND BANK
20-25
25-30
35-40
GENDER:
30-35
40-45
Male
Above 45
Female
QUALIFICATION:
MONTHLY INCOME: 10000-20000
20000-30000
30000-40000
40000-ABOVE
CONTACT NO.
ADDRESS
Que 1
Que 2
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Current
Nri account
Any other plz... Specify
Que 3 For how long do you have been account in this bank?
Less than one year
One to three year
Three to five
Above five
Que 4 What is your occupation?
Businessman
Employee
Student
o Any other plz... Specify_____________
Que 5
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No
If not please
specify____________________________
Que9 Do you want to avail services of any other account in our bank if yes then
specify the
name of the account..
Yes
No
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Que 14 Do you want that a call is made to you when a cheque has come for payment in
bank from your account(from third party)?
Yes
No
Que 15 Do you want monthly statement of your account on your e-mail id?
Yes
No
Que 16 Why do you prefer this bank?
Good services
Atm facility
With in your reach
Any other plz... Specify..
Que 17 What attracted you to open account in this bank?
Fame of the bank
Location
Good services
Que 18 Dealing of Staff is good
Response
Highly disagree
Disagree
Neutral
Agree
Highly agree
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Bibliography
Company History information is available through following sources:
Official website of company: IndusIndbank.com
Units of company and their other details are available through:
Official site of company
Annual results and financial details are collected from:
Balance sheets of company
http://www.indusind.com/downloaddepositschemesrr
http://induswealth.indusind.com/mutualfund/website/nsc/index.asp
http://www.wikiinvest.com/index/bse_bankex(bsebk)
http://www.webindia123.com/finance/bank/fix/html
http://wwfhummel.cnchost.com/money_quiz.html
http://enwikipedia.org/wiki/banking_in_india
http://enwikipedia.org/wiki/deposit_account
http://enwikipedia.org/wiki/hinduja_group
http://enwikipedia.org/wiki/history_of_banking
www.hindujagroup.com
http://www.banknetindia.com/stock/bankex.html
Sharma.k.shashi, (2006), theories of banking, kalyani publications.
Businessinfo.com
Managementparadise.com
Hand Book Of Banking Information
Bank of India
Financeguru.com
Other bank sites
RBI guidelines(Google Search)
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