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, Indias 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. Indias 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 FY2011 - FY2016;
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 (DSAs), 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 IBABCG 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 Indias 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 0613, 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 assetliability 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 banks 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 companys debt directly with another company.
The investment bank prices the debt according to the current yield curve and the
companys 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 banks 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 customers 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).

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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
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 banks 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 as

BSE: 532174
NSE: ICICIBANK
NYSE: IBN
BSE SENSEX Constituent
CNX Nifty Constituent

Industry

Banking, Financial services

Founded

1994

Headquarters

Mumbai, Maharashtra, India

Area served

Worldwide

Key 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

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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
employees
Website

of 94,204 (2014
www.icicibank.com

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:

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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

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

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HDFC Bank Limited

"We understand your world"

Type

Public company

Traded as

BSE: 500180
NSE: HDFCBANK
NYSE: HDB
BSE SENSEX Constituent
CNX Nifty Constituent

Industry

Banking, Financial services

Founded

August 1994

Headquarters

Mumbai, Maharashtra,India

Area served

Worldwide

Key people

Aditya Puri (MD)

Products

Investment
Banking
Investment
Management
Wealth
Management
Private
Banking
Corporate
Banking
Private
Equity
Finance
and
Insurance
Consumer
Banking
Mortgages
Credit Cards

Revenue

Operating income

Profit
12 | Passets
age
Total

Total equity

US$ 6.5
2013)

billion

(March

ICICI Bank Canada

ICICI Bank Eurasia

Liability Company

ICICI Securities Holdings Inc.

ICICI Securities Inc.

ICICI International Limited

Limited

HDFC Bank

HDFC Bank Limited is an Indian

banking and financial services company
headquartered in Mumbai, Maharashtra.
US$ 1.87 billion (March It is the fifth largest bank in India by
2013)
assets, incorporated in 1994 .It is the
largest private sector bank in India
US$ 1.1 billion (March 2013 by market capitalization as of 24
February 2014. As on Jan 2 2014, the
US$ 66.7 billion (May 2013)
US$ 8.6
2013)

billion

(March

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.

Outlook Money award 2013

Best Bank in Large Banks Category

[33][34]

IBA Innovation Awards

Most Innovative Use of Technology

[34][35]

Best Private Sector Bank Technology Adoption

Dun & Bradstreet Polaris Financial Technology Banking
Best
Private
Sector
Bank
Retail
Award 2013
Overall Best Private Sector Bank

Institutional Investor

Best
Bank
Mr. Aditya Puri - Best CEO

Forbes Asia

Fab 50 Companies List for the 7th year

Sunday Standard Best Banker Awards

Best
Private
Sector
Bank:
Safest
Bank:
Mr. Aditya Puri: Top Achiever

Large
Large

Asia Money 2013

Best
Domestic
Bank
in
Mr. Aditya Puri: Best Executive in India

India

MACCIA Awards 2013

Best in Financial Services: Bank Category

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in

Asia

[34][36]

[37]

[34][38]

[34][39]

[34][40]

[41]

UTI Mutual Fund CNBC TV 18 Financial Advisory

Best Performing Bank Private
Awards 2012

[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 CNBCTV18 IT Innovation Award

Best IT Driven
(COMMERCIAL)

The National Quality Excellence Awards

Best Customer Service Result

[46]

Brand Trust Report 2013

Most Trusted Finance Brand

[47]

FE Best Bank Awards

Best
Bank:
New
Private
sector
Best
in
Strength
&
Soundness
Mr. Aditya Puri: Best Banker

[34][48]

Skoch Financial Inclusion Awards 2013

Organization of the Year

[34][49]

Guinness World Record

For The Annual Blood Donation Drive

[50]

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Innovation

in

Banking

[34][45]

Axis Bank
Axis Bank

Traded as

BSE: 532215
LSE: AXBC
NSE: AXISBANK

Industry

Banking, Financial services

Founded

1994 (as UTI Bank)

Headquarters

Mumbai, Maharashtra, India[1]

Key people

(Chairman)
Shikha Sharma (MD & CEO)

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Products

Revenue

Credit
cards, consumer
banking, corporate banking,finance
and
insurance,investment
banking, mortgage
loans, private
banking, private
equity, wealth
management
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)
[2][3]
(2012)

Total assets

3.4 trillion (US$53 billion) (2012)

Number
employees

of 42,420 (on 31-March-2014

www.axisbank.com

Website

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

Bank of the Year Money Today FPCIL Awards 201213[18]

Best Bank CNBC-TV18 Indias Best Bank and Financial Institution Awards 2012

Best Bank Runner-up Outlook Money Awards 2012

'Consistent Performer' in 'Indias Best Banks 2012 survey' by Business Today and
KPMG[19]

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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 Convention2011-12

Best Acquiring Institution in South Asia Visa LEADER Award at Visas 2012
APCEMEA Security Summit, Bali

Gold Shield for Excellence in Financial Reporting in the Private Banks category
201112 from Institute of Chartered Accountants of India

Kotak Mahindra Bank

Kotak Mahindra Bank

Type

Public company

Traded as

BSE: 500247

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NSE: KOTAKBANK
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)
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Products

Deposit accounts, Loans,Investment

services,
Business
banking
solutions, Treasury and Fixed
income products etc.

Revenue

109.63
(2011)

billion(US$1.7 billion)

Net income

15.69
(2011)

billion(US$250 million)

Website

www.kotak.com

Kotak Mahindra Bank is the fourth largest Indian private sector bank by market capitalization,
headquartered in Mumbai, Maharashtra. The Banks registered office (headquarter) is located at
27BKC, Bandra Kurla Complex, Bandra East, Mumbai,Maharashtra, India.
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 Worlds first socially powered bank account
and Gold Award for Best App developed Worlds 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 2013

Adjudged Best Medium Sized Bank of the Year 2013 by Business World

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Kotak Junior ad film adjudged Best Banking Ad Worldwide 2013, by Bank Innovation
a leading global blog on banking

One Asian Bankers IT Award in Best Self Service category for Courtesy Call Back
feature

Won Platinum for Innovation Worlds 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: SBIN
BSE: 500112
LSE: SBID
BSE
SENSEX
Constituent
CNX Nifty Constituent

Industry

Banking, Financial Services

Founded

2 June 1956 , Nationalization , 1

July 1955

Headquarters

Mumbai, Maharashtra, India

Area served

Worldwide

Key people

Arundhati
(Chairperson)

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Bhattacharya

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

Number
employees

of 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
22 | P a g e

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

23 | P a g e

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
Ministers Employment Generation Programme (PMEGP) scheme for the year
2012.
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

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
24 | P a g e

346

billion (US$5.4 billion)

(2012)
Net income

52.48
(2012)

billion (US$820 million)

Total assets

4.574
(2012)

trillion (US$72 billion)

Website

www.bankofbaroda.com

Bank of Baroda (BoB) (Hindi: ) 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).
Bank of Baroda is one of the Big Four banks of India, along with State Bank of India, ICICI
Bank and HDFC Bank.

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Dena Bank
dena bank

Type

Public

Traded as

BSE: 532121
NSE: DENABANK

Industry

Financial
Commercial banks

Founded

1938

Headquarters Mumbai, India

Key people

Shri Ashwani Kumar(Chairman and

Managing
Director)
Shri A.K.Dutt (Executive Director)

Revenue

55673.7 million(US$870 million)

(201011)

Net income

6116.3
(200910)

Website

http://www.denabank.com

million(US$96 million)

Dena Bank (Hindi: ), 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.
26 | P a g e

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.

27 | P a g e

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)

Products

Commercial
Retail
Private
Asset
Mortgages
Credit 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)

28 | P a g e

Banking
Banking
Banking
Management

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.

29 | P a g e

OVERVIEW OF WORLD MARKET

Research 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
Years
Research 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.
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.

30 | P a g e

OTHER BANKS IN THE INDIA

Public-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
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
31 | P a g e

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
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
32 | P a g e

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

33 | P a g e

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
organizations performance, productivity, pride and prestige. Employee Engagement depends on
ones 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 onesjob or job experience. There are
some factors 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 external
The 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
35 | P a g e

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 coworkers 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 Pakistans 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, Zarkmir, 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
36 | P a g e

and rewards. Debashish Sengupta (2009) conducted a research to ascertain the job satisfaction
degree among bank officers, to elicit officers 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.

37 | P a g e

CHAPTER -3

38 | P a g e

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.

39 | P a g e

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.

40 | P a g e

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.

42 | P a g e

CHAPTER - 4
DATA ANALYSIS

Public Bank
43 | P a g e

Female
16

Male
34

Private Bank
Total

12
28

38
72

40
35
30
25

male

20

femle

15
10
5
0
private bank

public bank

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

44 | P a g e

Work Experience
Less than 2 years
3-5 years
6-10 years
11-15 years
More than 16
Total

Private Bank
11
20
10
3
6
50

Public bank
13
6
12
4
11
46

20
18
16
14
12

work experianc

10

private bank

public bank

6
4
2
0
1

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.

45 | P a g e

Salary
5000-15000
15001-25000
25001-35000
35001-45000
More than 45000
Total

Private Bank
15
14
9
2
9
49

Public Bank
6
16
8
6
8
44

16
14
12
10

salary
Private bank

Public bank

6
4
2
0
1

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

46 | P a g e

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.

47 | P a g e

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

48 | P a g e

CONCLUSION
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

49 | P a g e

BIBLIOGRAPHY
www.google.com
www.icicibank.com
www.hdfcbank.com
www.axisbank.com
www.kotakbank.com
www.sbi.co.in
www.bankofbaroda.com
www.bankofindia.com
http://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 in
Computer Science and Management Studies
Research Article / Survey Paper / Case Study
Available online at: www.ijarcsms.com
JobSatisfaction of Bank Employees in
Public & Private Sector Bank Jutimala Bora

50 | P a g e

Jorhat

Comparative

Study

of

ANNEXURE
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

1.
2.

3.
4.

5.
16.

7.
8.
9.
10.

11.
12.

As per my requirement my pay is

fair.
Comparing the salary for similar
jobs in other organization. I feel
my pay is better.
My pay is enough for providing
necessary things in my life.
I have been getting promotion as
par
my
qualification
and
experience.
I feel proud for working in this
organization.
I think this organization treats its
employees better than any other
organization.
I feel that I have opportunity to
present my problems to the
management.
I have full confidence in the mgt
of this organization.
Favoritism doesnt have any role
to play in this organization.
On the whole, I am satisfied with
the general supervision in my
department.
My supervisor behaves properly
with me.
My superior keeps me informed

51 | P a g e

Strongl
y
disagree

Disagre
e

Neutra
l

Agre
e

Strongl
y agree

13.
14.
15.
16.
17.
18.
19.

20.
21.
22.
23.
24.
25.

about all policy/ happening of the

organization.
My superiors take into account my
wishes as well as long as work
done.
I feel that my job is reasonably
secure as long as I do good work.
My present job is as per my
ability/
qualification
and
experience.
I usually feel fresh at the end of
the days work.
Working conditions in this
organization is satisfactory.
My job has helped me to learn
more skills.
On the whole, I feel have well or
prospects or advancement in my
job.
My co-workers will inform me of
what happen in my department.
When I was not on duty.
There is high team spirit in the
work group.
I am glad to work with all my coworkers in my department.
I often ask the opinion of my coworkers who work in my unit.
Communication between me and
my co-workers is free and open.
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 52 | P a g e

3 - 5 years 6. Salary/Month35001-45000

6-10 years -

11-15 years -

16 years or more

5000-15000
More than 45000

15001-25000

25001-35000

7. Marital status
Married

Unmarried

Thank you for your time and cooperation.

53 | P a g e