Ancillary Services By ICICI & Sbi bank

PRESENTED TO: Dr. Devendra Singh Niranjan Chetan Jain Deepak Jaiswal Hemant Suthar Juhi Verma PRESENTED BY: Abhijeet Singh Chandrakant

Banks
Banks play an important role in the field of trade,

commerce and industry. They promote and mobilize savings by providing safety, confidentiality and attractive rate of interest. Banks inspire confidence in people and help in creating banking habits in them.

Bank services
Primary services: borrowing and lending of

money Secondary services( or ancillary services): Services offered by banks to help the customers Such activities include collection of cheques, dividend, warrants, etc. on behalf of customers as well as effecting transfer of funds, remittances by mail and telegram in order to attract customers and make banking services effective.

Category of ancillary services

Rendered to banks own customers Available to general public

Services of bank to its customers

Some of functions in this category are enumerated below: (a) Dealing in Bills of Exchange, Promissory Notes, Hundies and Drafts. (b) Issuing letter of credit, Travellers cheques and Circular notes. (c) Buying, selling and dealing in bullion as well as foreign exchange and foreign bank notes. (d) Acting as agent for clients, buying and selling shares and debentures, and acting as underwriter. (e) Collection and remittance of money and extending guarantee against loans raised by customers.

Services to the General Public

(i) Providing facility of lockers for the safe custody of valuables. (ii) Financial assistance for the establishment of trusts, association, clubs and charitable institutions. (iii) Performing certain functions as are incidental or conducive to the promotion and advancement of trade and commerce. (iv) extending financial help to the weaker sections of society for self-employment. (v) Issue of bank drafts, gift-cheques, banker's cheques, etc.

Types of ancillary services

Remittance of funds Safe custody of valuables Safe deposit vaults Merchant banking Bid bonds and performance guarantees

Credit/Debit cards
Standing instruction Gift cheques

Teller system
Stock invest, etc.

ICICI Bank v/s SBI

 Indias largest private sector bank by market capitalization and

second largest overall in terms of assets.

India's second-largest bank with total assets of Rs. 3,793.01

billion and profit after tax Rs. 37.58 billion for the year ended March 2011.
The Bank has a network of 1,646 branches and about 4,883 ATMs

in India and presence in 18 countries (as on February 11, 2011) as well as some 26 million customers (at the end of July 20011).
ICICI Bank is also the largest issuer of credit cards in India.
ICICI Bank's equity shares are listed in India on Bombay Stock

Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

Source: moneycontrol.com (19.02.12)

 ''b2- Branch- free Banking'' is designed to offer seamless

information through a single interface to facilitate banking transactions over the internet. It is a unique direct bank access, which will empower customers to manage all their finances

 InstaBanking- makes banking simpler, faster,

more convenient.
Through these 5 great channels - Internet

Banking, Mobile Banking, ICICI Bank ATMs, Instant Voice Response (IVR) Banking and iMobile - you can do your day today banking

 Izone: A unique interactive experience, this is a first for any banking website

in the world. You can now deposit or withdraw cash, open fixed deposits and conduct many more real banking transactions in i-Zone. Take a leisurely tour and enjoy the warmth of our virtual staff without getting away from your desktop.

TV Banking: This pioneering initiative now enables you to get information regarding loans, accounts, deposits and a lot more while you're watching that exciting cricket match or your favorite sitcom. Quite certainly, TV Banking has revolutionised banking by bringing it right into your living room.

 State Bank of India (SBI) is the largest bank in India. The bank traces its ancestry back from 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.
The GOI nationalized the Imperial Bank of India in 1955 with the

RBI 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.

 It has a market share among Indian commercial banks of about 20% in

deposits and advances, and SBI accounts for almost one-fifth of the nations loans.
It is the largest provider of infrastructure debt and the largest arranger

of external commercial borrowings in the country.

With 11,448 branches and a further 6500+ associate bank branches, the SBI

has extensive coverage.

State Bank of India has electronically networked all of its branches under

Core Banking System (CBS).

The bank has one of the largest ATM networks in the region, with more than

9000 ATMs across India and other electronic channels such as Internet banking, debit cards, mobile banking, etc.

Source: moneycontrol.com (19.02.10)

 Paying utility bills at online SBI.

E-rail reservation service using SBI accounts.

MF investments handled through SBI a/c. SBI e-tax VISA Money transfer Use your 3-in-1 account to trade online Loyalty rewards Net banking for visually challenged

Asset Liability Management in banks

Function of ALM: to measure and control three

levels of financial risk

Interest Rate Risk (the pricing difference between

loans and deposits) Credit Risk (the probability of default) Liquidity Risk (occurring when loans and deposits have different maturities)
Managing Net Interest Margin

ALM in SBI
The Asset Liability Management

Committee (ALCO) Market Related Funds Transfer Pricing (MRFTP) Stressed Assets Management Group (SAMG)

ALM in ICICI
Asset Liability Management

Committee (ALCO) Structural Rate Risk Management Group (SRRMG) Risk measurement and reporting framework

SWOT analysis-SBI
Strengths
Brand Name Market Leader Wide Distribution Network Diversified Portfolio Government Owned Low Transition Costs

Opportunities
Merger of associate banks with SBI Additional 2000 branches and 3000 ATMs Increasing trade and business relations

Weakness
Hierarchical management structure of the bank Non performing assets (NPAs) Modernisation

Threats
Advent of MNC banks Consumer expectations Employee Strike Private banks venturing into the rural and semi-urban sector

SWOT analysis-ICICI
Brand Name Market Share Huge Network Diversified Portfolio Salary Account Working Hours Treasury Management Aggressive Marketing Technology

Strengths

Opportunities
New IT & ITES Companies Dissatisfied Customers of Other Banks Remittances Business advising for smaller Players

Weakness
Transaction Cost Focus on High end customers Defensive Approach in lending Little Presence outside India Poor customer Care/ service

Threats
Advent of MNC banks Dissatisfied Customers Ever improving nationalized banks

REFERENCES :MAGAZINS: Business World Business Today The Smart Manager WEBSITES: www.statebankofindia.com www.icicibank.com www.rbi.org.in

THANK YOU