Service Sector & Economic Growth in India

BANKING SECTOR

DEFINITION
The

segment of the economy that provides services to its consumers. This includes a wide range of businesses including financial institutions, schools, transports and restaurants. Also known as "tertiary sector of industry," or "service industry/sector".

The various sectors that combine together to constitute service industry are:

Trade Hotels and Restaurants Railways Other Transport & Storage Communication (Post, Telecom) Banking Insurance Dwellings, Real Estate Business Services Public Administration; Defense Personal Services Community Services Other Services

SHARES OF AGRICULTURE ,INDUSTRY & SERVICES IN INDIA

Overview of service sector

Service

Sector in India today accounts for more than half of India's GDP. Indias service sector has been resilient even during global economic crisis maintaining steady growth of 10%.

Banking Sector-India: An Overview

A bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money.
Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1770; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal.

REGULATION
RBI Banking Regulation Act,1949

BANK FUNCTIONS..
Accepting deposits Issue of demand drafts Granting loans & advances Undertaking safe custody of valuables, important documents & securities..

SOME BANKS OF INDIA

BANKING SECTOR

Money Moves The Worlds

Financial Overview

A financial system plays a vital role in the economic growth of a country. It intermediates between the flows of funds belonging to those who save a part of their income and those who invest in productive assets. It mobilizes and

usefully allocates scarce resources of a country.

A financial system is a complex, well-integrated set of sub systems of financial institutions, markets, instruments and

services which facilitates the transfer and allocation of funds,

efficiently and effectively.

RBI Steps for Indian Banking Industry

De-regulation

of savings rate. Guidelines for new banking license. Implementation of BASEL norms III.

Banking Performance
Since

2002 bankex grown at compounded annual rate of about 31%.

Porters 5 Forces Modal for Indian Banking Industry

Impact of Globalization On Banking Sector

Pre-Globalization Scenario of Service Culture In The Indian Banks

Formalized Customer Unfriendly
SERVICE CULTURE WAS EXTREMELY

Non Competitive Attitude.

Product Focused & Not Customer Service Focused.

Demotivated & Non Interested Employer& Employee.

Liberalization & Globalization Measures Were Introduced In India In 1991-92

.

Shri M.Narasimham Rao

Globalization Process
TWO WAY PROCESS.

INDIAN BANKS.

FOREIGN BANKS.

Banks In Globalized Competitive World

Foreign Banks in India Indian banks abroad

Abn Amro Bank

Punjab National Bank

Bank Of Ceylon
CITI BANK

Bank of Baroda ICICI Bank.

Competition

Focused On Customer Service

Innovation

Goods

Services

NEW BANKING SYSTEM: TECHNOLOGY ORIENTED

Why technology in banks? To transform financial services industry in the net-worked world. Increase operation efficiency, profitability & productivity Superior customer service

Provide services/products across a range of channels

To be futuristic and have time value in all its dealings with customers Improved management/accountability Better cross selling ability Minimal transaction cost Improved financial analysis capabilities

Innovation In Banking Products

Core Product

Basic Product

Expected Product

Augmented Product

Potential Product

The basic necessity to use banking services in order to handle finance more efficiently

Safety of deposits Loanable funds etc.

Timely service Long banking hours. Low interest Rate.

Good waiting rooms friendly employees Welcome note.

Occasion al greeting at home Surprise gifts.

Mobile & Internet banking

Flower Of Banking Service

Change in Product line

Financial service

Low interest rates

Growth Drivers of The Indian Banking Industry

High

growth of Indian economy Rising per capita income New channels- ATM, Mobile Banking Financial inclusion program

Challenges for Indian Banking Industry

Rural

market Management of risk Market discipline & transparency HRM Global banking Financial inclusion Employee & Customer retention

Future concerns of Indian Banking Industry

Improving

CAR. Managing NPA. Enhancing branch sales & services. Improving organization design. Using innovative technology. Frequent change in policy rates maintain economic stability.

to

References
www.rbi.org www.icrier.org http:/indiabudget.nic.in-es2011-12echap-

10.pdf Indian Banking Industry: Challenges And Opportunities-Dr. Krishna A. Goyal, Vijay Joshi

THANK YOU!!!!