INDIAN BANKING SECTOR

Banks are the most significant players in the Indian financial market. They
are also the biggest purveyors of credit, and they also attract most of the savings from
the population. The banking industries have so far played an important role in the
growth and development of the country.
India is well positioned to become the 4th largest economy in the world
by 2025.one of the key enablers of this rapid economic growth is the booming
banking sector that is able to adequately and efficiently meet the need of growing
economy.
The Indian banking can be broadly categorized into nationalized (government
owned), private banks and specialized banking institutions. The Reserve Bank of
India acts as a centralized body monitoring any discrepancies and short coming in the
systems.
The Indian banking has finally worked up to the competitive dynamics of the new
Indian market and is addressing the relevant issues to take on the multifarious
challenges of globalization. Banks that employ IT solutions are perceived to be
futuristic and proactive players capable of meeting multifarious requirements of large
customer’s base. The decade has seen much positive development in the Indian
banking sector by policy makers. The Indian banking has come from a long way from
being a sleepy business institution to a highly proactive and dynamic entity. Now,
Indian banks compare favorably on growth, assets, innovations, value creations and
profitability with other regional banks. Moreover twenty Indian banks have been
listed by Forbes survey among top 500 companies of the world.
Indian banking system is financially most stable against global economic crisis.
Indian banking sector has become an even a greater contributor in the GDP and large
section of society are availing its services.

OPPURTUNITIES IN THE BANKING SECTOR:

Indian banking sector has great future ahead as per recent survey,

• Rural and semi urban India is expected to account for 58.33% for insurance
sector by the end of 2010
• Increase in number of millionaires in India is increasing the scope of wealth
management services.
• Expected growth rate of banking sector@20% by 2014-15
• Future scope of new entrants in the market.
• Bankable household in India are expected to grow at 28.10% by 2014-2015
• Great opportunities in overseas expansion of Indian banks.
• Further expansion in the services provided by the banks.

The top 20 companies in the banking sector are shown in the form of table on the next
page. Difference between these companies has been made on products, customer
satisfaction, market share and average pay package offered to MBA graduate.
Sr. BANKS LOCATION AVG PAY FACILITIES MARKET CUSTOMER
NO. NAME (Prêf: PACKAGE PROVIDED CAPITAL SATISFACTION
Gorakhpur) -ISATION (rating out of five)
(Rs. Crore)
1. State 18500 Rs. 3,00,000 Medical 154983.73
Bank Of branches at Per annum insurance,
India multi-location Reduced interest
in rates on loans,
India and Free auto sweep
abroad. facility, housing
At Pref. facility, holiday
location: Yes packages, etc

2. ICICI 2160 branches Rs. 3,75,000 Employee Stock 100613.25

Bank at multi Per annum Option Scheme,
location in Overtime Pay,
India and Life, Accidental
abroad. Death, and
At Pref. Dismemberment
location: Yes Insurance,
Recreation &
training to its
employees,etc

3. HDFC 1726 branches 3,30,000 Retirement Plans 93319.45

Bank at multi Per annum and Stock
location in Options, free
India and debit card & free
abroad. inter city branch
At Pref. transaction.
location: Yes Life & Accidental
Death Insurance,
Facility to
maintain zero
balance
account,etc

4. AXIS 1052 branches 3,25,000 free of cost 48894.98

Bank at multi Per annum maintenance of
location in demat Accounts,
India and Holiday Policy,
abroad. Overtime Pay,
At Pref. Performance
location: No Bonuses,
Dismemberment
Insurance ,
Health insurance
5. Punjab 5000 branches 2,85,000 Holiday Policy, 33666.91
National at multi Per annum Overtime Pay,
Bank location in Performance
India and Bonuses,
abroad. Dismemberment
At Pref. Insurance ,
location: Yes Health Insurance,
Dental Insurance,
Retirement Plans,
Vacation Time,
Visual Care
Insurance

6. Kotak 1500 branches 3,65,000 Medical 27257.54

Mahindr at multi Per annum insurance,
a Bank location in Reduced interest
India and rates on loans,
abroad. Employee Stock
At Pref. Option Scheme,
location: No free of cost
maintenance of
demat Accounts,
Performance
Bonuses,
holiday packages

7. Bank Of 3000 branches 3,05,000 Children 26601.48

Baroda at multi Per annum education
location in allowance,
India and medical facilities,
abroad. free of cost
At Pref. maintenance of
location: Yes demat Accounts,
Holiday Policy,
Overtime Pay,
Performance
Bonuses,
Dismemberment
Insurance,
Salary Reviews,
Holiday Policy
Life and
Dismemberment
Insurance
8. Bank Of 3107 branches 2,75,000 Expense 20718.69
India at multi Per annum Reimbursement,
location in Holiday Policy,
India and Retirement Plans,
abroad. Stock Options,
At Pref. Educational
location: Yes Assistance,
Training and
Professional
Development,
Disability
Insurance, Life,
Accident and
Dismemberment
Insurance,
Progression and
Promotion,
Performance
Bonuses

9. Canara 2508 branches 2,50,000 children 19626.70

Bank at multi Per annum education
location in allowance,
India and medical facilities
abroad. Holiday policy,
At Pref. health insurance.
location: Yes

10. Union 2261branches 2,75,000 post retirement 16489.24

Bank Of at multi Per annum and medical
India location in benefits, loans to
India and Employees at low
abroad. rates, Facility to
At Pref. maintain zero
location: Yes balance account.

11. Indian 1894 branches 2,50,000 free of cost 10368.20

Bank at multi Per annum maintenance of
location in demat Accounts,
India and Holiday Policy,
abroad. Overtime Pay,
At Pref. Performance
location: No Bonuses,
Dismemberment
Insurance.
12. Oriental 1523 branches 2,85,000 Pre-tax 9365.78
Bank at multi Per annum Deductions for
location in Expenses,
India and Retirement Plans
abroad. Educational
At Pref. Assistance,
location: No Holiday Policy,
Dental Insurance,
Employee
Ownership

13. IDBI 1000 branches 3,00,000 Recreation & 8864.49

Bank at multi Per annum loan facilities
location in Housing, medical
India and facility to
abroad. employees, free
At Pref. health check up
location: Yes on yearly basis

14. Indusind 500 branches 2,50,000 Performance 8728.86

Bank at multi Per annum Bonuses,
location in Employee
India and Ownership,
abroad. Performance and
At Pref. Salary Reviews,
location: No Life, Accidental
Death, and
Dismemberment
Insurance ,
Educational
Assistance.

15. Allahaba 2134 branches 2,75,000 Performance 7710.04

d Bank at multi Per annum Bonuses,
location in Overtime Pay,
India and Progression and
abroad. Promotion,
At Pref. Health Insurance,
location: Yes Dental Insurance,
Retirement Plans
and Stock
Options,
Holiday policy
16. Corporat 1278 branches 2,50,000 Retirement plans, 7647.80
ion Bank at multi Per annum Housing,
location in medical,
India and insurance
abroad. facilities, Facility
At Pref. to maintain zero
location: Yes balance account

17. Andhra 862 branches 2,55,000 Performance 7149.45

Bank at multi Per annum Bonuses,
location in Payroll and
India and Paydays,
abroad. Dental Insurance,
At Pref. Visual Care
location: No Insurance,
Holiday Policy,
Training of
employees.

18. Indian 821 branches 2,50,000 Performance 5973.18

Overseas at multi Per annum Bonuses,
Bank location in Employee
India and Ownership,
abroad. Social Security,
At Pref. Educational
location: Yes Assistance,
Training of
employees
Holiday Policy,
Pre-tax
Deductions for
Expenses.

19. UCO 350 branches 2,25,000 Performance 4625.61

Bank at multi Per annum Bonuses,
location in Overtime Pay,
India and Payroll and
abroad. Paydays,
At Pref. Health Insurance,
location: No Educational
Assistance,
Sick Leave,
Holiday Policy
20. Vijaya 300 Branches 2,35,000 Visual Care 2859.06
Bank at multi Per annum Insurance,
location in Disability
India and Insurance, Pre-
abroad. tax Deductions
At Pref. for Expenses,
location: No Performance
Bonuses,
Bereavement
Leave, Open
Communication,
Holiday Policy,
Retirement Plans
and Stock
Options.

Source:
 Internet
 Mr. Anil Garg, Union Bank of India.
 Mr. Baldev Kutar, Branch Manager, Bank of India.
THE BANKS I WOULD LIKE TO JOIN

After analyzing location of branches, facilities given to employees, its market

capitalization, customer satisfaction level and the average pay package of these 20
banks, I came across various facts of these banks which helped me in deciding the
five banks which I would like to join.
So if I would have been given an opportunity to join any five banks among
twenty banks, I would like to work with

• State Bank of India

• ICICI Bank
• HDFC Bank
• Bank of India

Below are some brief details about these banks:

(State Bank of India)

State Bank of India, formerly known as The Imperial Bank of India was
formed as a result of merger of three premier banks of India, namely Bank of Bengal,
Bank of Bombay and Bank of Madras. SBI became the first Indian bank to come into
world’s top 50 lists in Brand Finance@ Global Banking 500, an annual international
survey by UK based Brand Finance Plc., this year. SBI provides a wide range banking
products like investment banking, wealth management, consumer commercial and so
on.
With an asset value of more than $323 billion and employees more than 2lakhs it
is biggest service provider bank of India. It has 18500 branches and 21000 ATMs at
various locations across 32 countries.

(Industrial Credit and Investment Corporation of India)

ICICI bank is 4th largest bank and largest private sector bank in India with total
assets value of more than $100 billion. It has over 35,000 employees working in 2016
branches spread over 18 countries, serving more than 24 million customers. It is a
major banking and financial service organization in India.
ICICI bank offers a wide range of banking products and financial services
to corporate and retail customers through its well spread network of branches and
specialization subsidiaries like investment banking, life insurance, venture capital and
assets management. It is also one of the big four companies of India. The bank is also
in the Forbes list of world most powerful companies. ICICI bank is the first and only
Indian Bank to be ranked 45th most valuable brand in the world by top 100 Global
Brands report.
(Housing development Finance Corporation)

HDFC Bank Ltd. is one of the important financial company in India. The bank has
around 1800 branches and 4232 ATMs in 780 cities. HDFC bank deals in three major
business segments- Wholesale Banking Services, Retail Banking and Treasury.
HDFC has won the ‘THE MOST CONSISTENT WEALTH CREATOR’ award in the
14th Motilal Oswal Wealth Creation Study. The bank has total assets of $846.01
billion. With a family consisting of more than 51000 employees it is serving its
customer with pride.

(Bank of India)

Bank of India was founded on 7th September, 1906 by a group of eminent

businessmen from Mumbai. The Bank was under private ownership and control till
July 1969 when it was nationalized along with 13 other banks.
Beginning with one office in Mumbai, with a paid-up capital of Rs.50
lakhs and 50 employees, the Bank has made a rapid growth over the years and
blossomed into a mighty institution with a strong national presence and sizable
international operations. In business volume, the Bank occupies a premier position
among the nationalized banks.
The Bank has 3107 branches in India spread over all states/ union territories
including 141 specialized branches. These branches are controlled through 48 Zonal
Offices. There are 29 branches/ offices (including three representative offices)
abroad.
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. The Bank completed its first one hundred
years of operations on 7 September 2006.
 REASONS TO SELECT THESE BANKS

The Indian banking sector has emerged as one of the strongest drivers of
India’s economic growth. Positive changes witnessed in the last two decades have
impacted every aspect of banking, ranging from regulatory standards to customer
management
As a management trainee, brand value of a bank also matters to me. These
banks are leading banks in Indian banking sector. SBI and ICICI are among big 4
banks of India. They offer great opportunities in commercial banking and core
banking, investment banking, wealth management banking, insurance sector,
agriculture and educational financing, retail banking and so on. [Source: internet]
Market capitalization is an important factor in analysis and valuation of
company. It is used to compare various companies in the same industry. Market cap
is a good estimator of stability of company as it reflects the consensus view of all
participants regarding its share price and therefore its value SBI, ICICI and HDFC
banks are also top 3 in terms market capitalizations whereas Bank of India stands 6th
in the list. [Source: Mr. Anil Garg, Union Bank of India]
Another important factor to consider these banks is their annual pay package
given to a fresher, because as a fresher, knowing my skills and strengths I would like
to start with around Rs. 3lkh p.a. SBI, ICICI, HDFC and BOI all give a good pay
scale to upcoming mangers.
These banks are also near to my hometown Gorakhpur, therefore I have preferred
these banks over other banks.
Facilities provided by these four banks to its employees are also better in
comparison to what other banks provides. Facilities like giving performance bonus,
overtime pay, retirement and stock option plans, life & health insurance, holiday
policy, etc are some of basic facilities I will look in before joining any banks. These
banks satisfy my requirements in terms facilities.[Source: Mr. Baldev Kutar, Bank of India &
Internet]
Above all these banks have the higher customer satisfaction level which is a
very important factor for any bank to survive and succeed in competitive market.
Apart from this, as a customer also I would like to join a bank which provides me
good services.
Thus, a management trainee I would like to go for these banks on the basis of their
pay package, locations, market capitalization, facilities given to its employees, and
customer satisfaction level.
SKILLS REQUIRED IN BANKING SECTOR

Banking sector in India is one of the largest and fastest growing sectors. It is also one
of the largest employment generators in India. More number of highly qualified
personnel is required to meet this growing demand. Therefore to fill this gap of
demand and supply of qualified personnel, one should be well aware of the qualities
to excel in this sector.
Some of the basic skills that a person interested in joining this sector must possess
are:
 Should have good communication skills
 Should be a graduate level trained in finance like MBA
degrees, or qualified accountants.
 Good command over mathematical and analytical skills.
 Knowledge of economic and banking reforms.
 Should be quick with numbers.
 Should be good at data interpretation and logical reasoning.
 Good knowledge of current financial market in banking
sector.
 Good Interpersonal skills.

 Good at accounts & economics.

[source: Mr. Anil Garg, UBI & Mr. Ranjan, SBI]

The above mentioned skills are required to succeed in banking sector. A person must
posses these skills in order to survive in today’s cut throat competition, as more and
more people are getting attracted towards fast growing banking industry.

STRENGTHS WHICH I POSSESS:

 Interest in accounting, economics and commerce.

 Good at working with people.

 Interest in investment banking provides me a great knowledge
in sense of return over investment or wealth creation.
 Good at logical reasoning and data interpretation.
  Quick with numbers.

These are my strengths which I posses and which I will fully utilized to succeed in
one of my dream company. Since I am commerce graduate and after completing my
P.G.D.M. my skills and knowledge will improve.

Strengths I need to posses:

 Regularity and sincerity in my planned course of actions.
 Inculcate effective communication skills.
 Regular updating is needed to be enhanced in my
knowledge database.
 Need to develop my decision making skills.
 Need to be more flexible and convincing.

My Quarterly plan
and course of action to improve my skills and convert my weaknesses into
strengths:

My priority in quarterly plan will be to improve my skills and

knowledge so that I can match the skills required by the banking sector in
order to succeed. The basic plan that I will follow is:

1. I will improve my mathematical & analytical skills and

I’ll be doing this by working on banking and economic
reforms study.
2. I will be Working on my communication skills to make it
better to executive communication level, by
participating in debates, group activities, reading
newspaper, etc.
3. Working on logical reasoning and data interpretation.,

4. I will focus on enhancing my present skills.

5. Will keep updating my knowledge database.