BANKING INDUSTRY

PRIVATE BANKS
(Part-1)

PRESENTED BY:
JUHI TILWANI
SHIVAM VERMA
SHUBHAM MEENA
(Group 9)

INTRODUCTION
A bank is a financial institution which deals
with deposits and advances and other related
services It receives money from those who want
to save in the form of deposits and it lends
money to those who need it .

ORGANISED STRUCTURE OF BANKING

INDUSTRY

ONLINE BANKING AND ATM

USAGE

PRIVATE BANKS
A private bank is a bank whose
major stake is owned by private
stakeholders
and
not
by
government.
Government has a very little
role to play when it comes to
private sector banking.
Private banks play a pivotal role
for
a
country's
economic
development

HISTORY
Initially, all the banks in India were Private
Banks.
In 1921, 3 major banks ,i.e., Bank of Bengal,
Bank of Bombay, Bank of Madras merged to from
Imperial Bank of India.
In 1935, Reserve Bank of India was established
and it took the central responsibilities from the
Imperial Bank of India.
On 19 July, 1969, nationalization of major banks
has been occurred.

The private banks before nationalization are called old

private banks and the ones after nationalization are called
new private banks.
In 1994, Reserve Bank of India issued a policy of
liberalization to license limited number of Private Banks
which came to be known as New Generation Tech-Savvy
Banks.
Global Trust Bank was first bank after liberalization, it
was later amalgamated with Oriental Bank of
Commerce(OBC) .
Housing Development Finance Corporation Limited
(HDFC) became the first to receive an in principal
approval from Reserve Bank of India to set up a bank in
private sector.

IMPORTANCE OF PRIVATE BANKS

IN INDIA
Offering high degree of Professional Management
Creates healthy competition
Encourages Foreign Investment
Helps to access foreign capital markets
Helps to develop innovation and achieve expertise

KEY DEMAND DRIVERS

ROLE OF PRIVATE BANKS

The importance of private sector in Indian economy over the
last 15 years has been tremendous. The opening up of Indian
economy has led to free inflow of Foreign Direct Investment
(FDI) along with modern cutting edge technology, which
increased the importance of private sector in Indian economy
considerably. Banks play a major role in this. Private sector
Indian banks have exhibited profitability improvements,
better asset quality trends, lower credit costs and healthy
capital levels over the years. The Private Banks are
accountable for a share of 18.2 percent of the Indian banking
industry.

Fig: Private Sector Indian banks have asset quality concerns under
control

Fig: Private Sector Banks have benefitted from a higher port folio of
retail loans

Private Sector Banks in the Recent Few

Years
Private sector banks have managed to record better growth
than their public sector counterparts in the past few years, as
the latter remain burdened with asset quality woes. In 2015,
PSBs seemed to lag private banks on asset quality,
profitability, and credit growth, among others. For instance, the
PSBs recorded the highest level of stressed assets at 14.1 per
cent, followed by private banks at 4.6 per cent, and foreign
banks at 3.4 per cent. Because of the pressure on asset quality,
the PSBs have also been lending more cautiously, resulting in
muted credit growth for them

MANAGEMENT
Mr. Keki Mistry
Vice Chairman and Chief Executive Officer.
Mrs. Shyamala Gopinath
Part Time Non Executive Chairperson
Mr. Partho Datta
Independent Director

KEY FACTS
NET PROFIT
12,296 crore

(An increase of 20.4% compared

to the previous year)

TURNOVER
74,373.22 crore

BALANCE SHEET SIZE

708,846 crore
(An increase of 20.0% compared
to the previous year)

EMPLOYEES
76,286

(Including 12,680 women)

RECOGNITION
Best Managed Company (Finance Asia Poll
on Asias Best Companies 2015)
Ranked third in Investor Relations and
Corporate Governance (Finance Asia Poll on
Asias Best Companies 2015)

MANAGEMENT
NAME

DESIGNATION

Mahendra Kumar Sharma

Chairman

Chanda Kochhar

Managing Director & CEO

M S Ramachandran

Director

V Sridar

Director

Dileep Choksi

Director

Alok Tandon

Director

Homi Khusrokhan

Director

Tushaar Shah

Director

V K Sharma

Director

N S Kannan

Executive Director

Rajiv Sabharwal

Executive Director

Vishakha Mulye

Executive Director

Vijay Chandok

Executive Director

KEY FACTS
CONSOLIDATED PROFIT
AFTER TAX
101.80 BILLION
STANDALONE PROFIT
AFTER TAX
97.26 BILLION
BRANCHES
4,450
ATMs
13,995

KEY FACTS
NET PROFIT
8,224 (CRORES)

EMPLOYEES
50,135
BRANCHES
2,904

BALANCE SHEET SIZE

525,468 (CRORES)

ATMs
12,743

CONCLUSION
The private sector banks are providing their services in all
the population groups.
They have started expansion plans in semi urban and rural
areas. This is a good sign for ensuring financial inclusion and
better quality of service in these areas.
The number of branches of private banks with economic
freedom of states shows better rank correlation than with
ratio of development expenditure and gross state domestic
product.
Information and communication technology offers the
opportunity for the private banks to improve financial
inclusion for the unbanked people.

Private banking has invited foreign economies to invest in our

developing country.
Private sector, Indian Banks have exhibited profitability
improvements, better asset quality trends, lower credit costs and
healthy capital levels over the years.
Private banks in India has a got a great response in terms of
service and quality banking.
Globalization has encouraged multinationals and foreign banks
to set up their business unit in a developing country like India.