Vikas Final Project

IndusInd Bank

SUMMER TRAINING PROJECT REPORT ON “Deposit Schemes of IndusInd Bank”

IndusInd Bank Limited (Makes you feel richer) Project guide- Miss AVINASH KAUR

Bank guide-

Mr. SANDEEP SHARMA (BRANCH MANAGER)

Submitted byVIKAS MAHAJAN 10809708 MBA 3RD SEMESTER (FINANCE)

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ACKNOWLEDGEMENT Summer Internship is a nurturing period which is indispensable for joining any company. On the voyage of learning I came across many hurdles but each hurdle was a good experience for me. At each step of my training, my mentor gave me full support which helped me in carrying positive attitude whenever I faced any problem. Firstly, I take this opportunity to thank Mr. Sandeep Sharma(Branch Manager of Indusind Bank, Jalandhar), who has always stood by me and encouraged me to embark on the path of learning. I wish to convey my special thanks to Mr. Gurminder Singh (Assistant Vice President NRI services Punjab), Mrs. Mamta Mehta (Deputy Branch Manager), and all employees who have helped me directly or indirectly in my difficulties at Indusind Bank Jalandhar India who have been a constant source of inspiration and encouragement to me. I wish to express my deepest and most sincere thanks to my Faculty Guide, Miss Avinash Kaur who have continuously guided me throughout this project. Last but not the least I would like to thank my fellow management trainees from Indusind Bank Jalandhar. By interacting with them, I was able to generate more meaningful ideas that have enabled me to further complete this project. No words can adequately express my overriding debt of gratitude to my parents whose support helps me in all the way. Above all I shall thank my friends who constantly encouraged and blessed me so as to enable me to do this work successfully. Vikas Mahajan

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PREFACE Theoretical knowledge without practical knowledge is of little value. In order to achieve positive & concrete results along with theoretical concept the exposure of real life situation existing in corporate is very much needed. To fulfill this need the management course has a provision for the practical training program. I thank my institute to provide us such opportunity having training period in our course so that students can have real feeling of Organization life. I took my summer training in INDUSIND BANK, Jalandhar. It was my fortune to get training in very healthy atmosphere. I got ample opportunity to views the overall working of the IndusInd bank. In the coming pages an attempt has been made to present a comprehensive report is concerning different aspects.

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Content

Index

Page no.

1

Acknowledgement_____________________________________________ 2

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Preface ______________________________________________________ 3

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Executive summary____________________________________________ 5

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CHAPTER-1 Deposit schemes______________________________________________

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Literature review_______________________________________________ 12

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CHAPTER-2 Banking history/evaluation/private banks in India____________________ 14

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Major banks__________________________________________________ 23

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Growth rate_________________________________________________

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Profile ______________________________________________________ 25

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Brief History_________________________________________________ 30

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History of the company________________________________________

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Mission/vision/objective Achievements ____________________ ______

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Product range/deposit schemes_________________________________

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Statistical profile__________________________________________

57

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Financial statement/Future plans____

_

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CHAPTER-3 Research methodology________________________________________

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CHAPTER-4 Analysis and interpretation ____________________________________

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CHAPTER-5 Suggestions/conclusions/summary_______________________________

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Appendix __________________________________________________

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Bibliography ________________________________________________ 85

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Executive Summary The financial services sector and capital markets have a significant influence on how Economies develop, principally through their role in allocating financial capital between different economic activities, as well as through their own operations, not only do banks Manage their own financial and sustainability performance, they are in a position to influence Socio-economic and environmental performance in client organizations and through their Depositing strategies. In this report, we examine whether and how banks manage the corporate economic impacts of their core deposits activities.

The aim of this research is to explore whether banks account for the types of economic Impacts arising from their deposit activities. It asks who the real beneficiaries of bank’s deposit activity and whether banks take this into account in their core business decisions. Specifically, it questions how some banks understand their economic impacts and whether and how this informed the development and delivery of deposit products and services. Accountability and BSR have developed a methodology through which companies can begin to articulate and account for the economic impacts of their business activities – sitting, employment, Procurement, product and service development and delivery, contribution to taxes, investment And philanthropy.

This report focuses on the bank deposit sector’s product Development and delivery business function, and through this explores corporate understanding and accountability of banks. As for all sectors, there is less data on product-related impacts than other for other aspects of business activity, which is a critical impact area for banks.

This study explores whether and how banks understand and manage the economic impacts of their products – through product development, use and delivery of deposit products – on the communities that use them. This relates to both production-side economic impacts and consumption side product-related economic impacts. Production-side impacts might include the operations of bank branches, and might include employment, sourcing from local suppliers and environmental impacts. While the impact of these activities is important, the

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IndusInd Bank most significant economic impacts are likely to accrue to customers and the wider economy. Consumption-side economic impacts relate directly to the access to finance debate, as well as questions that have arisen from whom bank take deposits. Most attention on banks in this area has focused on project finance for large and environmentally sensitive projects. Access to finance refers to the lack of availability of finance to specific communities. These issues have largely defined the corporate responsibility of banks in the eyes of some major stakeholders. This report explores how some banks understand and account for their economic contribution to society. For some, economic impact management is already an important internal management tool and stakeholder engagement platform. For others, the value of managing economic impact is clear, but the challenge is finding ways to do it. Ideally, corporate management of economic impact allows company to better inform and engage stakeholders on the broader debate on the role of the sector in society.

The report examines what sustainability principles and standards mainstream banks have adopted around the world, and the extent to which those standards capture the most significant potential economic impacts of bank lending. The report sets out some of the key framework issues and players driving banks to consider sustainability issues.

Objective

The main objective of the study of the deposits schemes of the bank is to study what bank provide to different type of customers as per their requirement in their deposits. Because I was there in IndusInd Bank for 6 weeks and I saw different type of customers there. Businessman, employees, nri, students, senior citizens, any many more. Some want fixed deposits, some wants services, some want more transactions intra day, some want that to pick cash and deliver cash to their home as per their want. So this main of my study.

Significance

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IndusInd Bank The significance of the study is that with this study I came to that what is actually going in private sector banks and what is the difference in the services of private sector banks and public sector banks. type of deposits and services and many more.

Scope

The scope of this study which is conducted by me is Jalandhar city. The method used by me is pump late provided by bank and bank’s site www.indusindbank.com

Recommdentations There should be system like in forgien countries that employee on every counter can deal with every customer, that is he can take deposit from him he cashed his cheque. Bank should increase in number of branches in all over India. Number of ATM should be increased. Number of employees for banking operation should be increased. There should be more advertisement of the bank, because mostly people are not aware about the name of the bank.

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IndusInd Bank Bank should use some promotional strategies. Area of the branch should be wide.

CHAPTER-1

Project Objective To study the deposit schemes of bank Customers Time becomes the most important aspect looked over by the customer with the changing life style, especially if we talk about service industry, its importance increases by many folds and same applies to advanced services regarding deposits schemes also. As soon as customer walks down at the dealer points he doesn’t wish to even waste a single minute to cashed a cheque or for deposit money or withdraw with the Multi National banks entering in Indian Markets.

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IndusInd Bank Banks Service industry requires a lot of customer focus as customer is also involved in the whole process and needs a special attention as well as fast and quality services if they want to remain in the market. So the same applies to the banking industry as the customer is very choosy in selecting a bank and which can give him fast and better services as well as good customer interactions is preferred. So the improvement of personalized banking, Internet banking, mobile banking, phone banking, doorstep banking, will ensure that the customer gets fast Service in banks. So a compressed turn around time will lead to better retention of customer and will increase the goodwill of the bank.

Opening and operation of account Any resident Indian in India can open accounts in single name or in joint names with different options, for final disposal. Photograph and KYC Compliance Nomination facility is available Transfer of accounts from one branch to another branch is possible. Safe Custody and automatic renewal of deposits are undertaken

Closure of Accounts When the account is closed the amount is paid by cash or credited to the account of the depositor. Repayment of deposits with maturity value above Rs.20,000/- shall be made by credit to an account or by an account payee cheque (as per law).

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Deposit Schemes

A deposit account is a current account, savings account, or other type of bank account, at a banking institution that allows money to be deposited and withdrawn by the account holder. These transactions are recorded on the bank's books, and the resulting balance is recorded as a liability for the bank, and represent the amount owed by the bank to the customer. Some banks charge a fee for this service, while others may pay the customer interest on the funds deposited.

Major types Savings accounts: Accounts maintained by retail banks that pay interest but can not be used directly as money (for example, by writing a cheque). Although not as convenient to use as checking accounts, these accounts let customers keep liquid assets while still earning a monetary return. Money market deposit account: A deposit account with a relatively high rate of interest, and short notice (or no notice) required for withdrawals. In the United States, it is a style of instant access deposit subject to federal savings account regulations, such as a monthly transaction limit. Time deposit: A money deposit at a banking institution that cannot be withdrawn for a preset fixed 'term' or period of time. When the term is over it can be withdrawn or it can be rolled over for another term. Generally speaking, the longer the term the better the yield on the money. Current account: This account is mainly for business class people. The main benefit of this account is that the account holder can make transactions in his/her account as many Page

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IndusInd Bank time as he want. No limit on the transactions. Like is on saving account. And no interest is provided on this account. Overdraft limit is also available on this account. Flexi/ sweep account: Now after looking at the western countries of the deposits Indian banks starts this account. On this account holder get the benefit of saving and fixed account. In this account holder can specify to his bank that this much amount he want to maintain in saving account and above that limit his money should be transferred to fixed deposit account. But the main benefit of this account is that holder can withdraw any money that want to withdraw. And this facility is not available in fixed deposit account.

Legal framework of deposit scheme Although restrictions placed on access depend upon the terms and conditions of the account and the provider, the account holder retains rights to have their funds repaid on demand. The customer may or may not be able to pay the funds in the account by cheque, internet banking, or other channels depending on those provided by the bank and offered or activated in respect of the account.

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IndusInd Bank The banking terms "deposit" and "withdrawal" tend to obscure the economic substance and legal essence of transactions in a deposit account. From a legal and financial accounting standpoint, the term "deposit" is used by the banking industry in financial statements to describe the liability owed by the bank to its depositor, and not the funds (whether cash or checks) themselves, which are shown an asset of the bank. For example, a depositor opening a checking account at a bank in the INDIA with RS.100 in currency surrenders legal title to the RS.100 in cash, which becomes an liability of the bank. On the bank's books, the bank debits its currency and coin on hand account for the RS.100 in cash, and credits a asset account (called a deposit account, checking account, etc.) for an equal amount. ( doubleentry bookkeeping system.) In the audited financial statements of the bank, on the balance sheet, the RS.100 in currency would be shown as an liability of the bank on the left side of the balance sheet, and the deposit account would be shown as a asset owed by the bank to its customer, on the right side of the balance sheet. The bank's financial statement reflects the economic substance of the transaction -- which is the bank has actually borrowed RS.100 from its depositor and has contractually obliged itself to repay the customer according to the terms of the demand deposit account agreement. To offset this deposit liability, the bank now owns the actual, physical funds deposited, and shows those funds as an liability of the bank. Typically, an account provider will not hold the entire sum in reserve, but will loan the money at interest to other clients, in a process known as fractional-reserve banking. It is this process which allows providers to pay out interest on deposits. By transferring the ownership of deposits from one party to another, they can replace physical cash as a method of payment. In fact, deposits account for most of the money supply in use today. For example, if a bank in the INDIA makes a loan to a customer by depositing the loan proceeds in the customer's checking account, the bank typically records this event by debiting an asset account on the bank's books (called loans receivable or some similar name) and credits the deposit liability or checking account of the customer on the bank's books. From an economic standpoint, the bank has essentially created economic money (although obviously not legal tender). The customer's checking account balance has no RUPEE bills in it, as a demand deposit account is simply a liability owed by the bank to its customer. In this way, commercial banks are allowed to increase the money supply. (without printing currency, or legal tender)

LTERATURE REVIEW

Review of the Cash Ratio Deposit Scheme - Consultation on proposed changes Page

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The cash ratio deposit (CRD) scheme was placed on a statutory footing in the 1998 Bank of England Act. Under its terms certain institutions authorized under the Financial Services and Markets Act 2000 to accept sterling deposits (such as banks and building societies) place non-interest bearing deposits at the Bank of England. The Bank of England invests these deposits and the income earned is used to fund the costs of its monetary policy and financial stability functions, which benefit sterling deposit takers. As part of the last review of the cash ratio deposit scheme (which took place in 2003) the Government made a commitment to conduct a further formal review at the latest in five years time. The beginning of that review was announced by the Chief Secretary to the Treasury in a written Ministerial statement on 14th May 2007. A public consultation, detailing the findings of the review and its proposed changes to the CRD scheme, was launched in August 2007. This consultation closed on 2nd November 2007. Review of the Cash Ratio Deposit Scheme - Consultation on proposed changes is available below in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website . For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page .

Deposit Compensation Scheme Update

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IndusInd Bank From 26 November 2008 all retail deposits are protected by the introduction of the Guernsey Banking Deposit Compensation Scheme. The Scheme has been prepared rapidly in response to recognition by the Commerce and Employment Department and the Policy Council of the urgent need to introduce such a measure. The key elements of the scheme are: The scheme covers all individual retail depositors, wherever they live.The scheme provides compensation of up to £50,000 per person per licensed bank, no matter how many accounts they have with that bank. The scheme will pay compensation within three months of a bank failure. The scheme will be operated by an independent board which will be separate from both the Guernsey Financial Services Commission and the States of Guernsey. The maximum amount of compensation is capped at £100 million in any 5 year period. The scheme will be funded by a combination of insurance and a levy on the banking industry in the event of a bank failure, taxpayer’s funds will not be involved. The scheme was developed by a technical working group which included representatives of the Association of Guernsey Banks. Several of the proposals in the scheme are innovations specifically suited to Guernsey’s diverse banking industry. It provides an appropriate level of compensation to depositors but also ensures that the Banks will have certainty about their potential liability. The Department and the Policy Council are grateful to Deputy Charles Parkinson who chaired a working group to bring these proposals to the States as quickly as possible. The Department would also like to thank those members of the Association of Guernsey Banks who gave up their valuable time to work with the Department on developing these proposals and GFSC for their invaluable help and initial research.

CHAPTER-2 HISTORY OF BANKING COMPANIES

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IndusInd Bank The bank is being used since long time. But there is not clear conception regarding its beginning days. According to one view point in good old days Italiyan money lender were known as Banechi or Banecheri because those people kept a special type of table to transact their business called Banchi. Origin of the word bank belongs to the world Banchi or to the greek word Banque. Both these words refers to same kind of banking. Casa De San Giorgio was the first bank to be established in 1148. The first public sector bank Venice. It was established in 1157. The banking Companies Act, 1949 was passed to consolidate (combine) and amend he law relating to banking companies. The need for this was felt owing partly to the abuse of powers by persons controlling some banks and the absence of measures for safeguarding the interests of depositors of banking companies in particular and partly to the economic interests of the country in general. It must, however be added that the provisions of the act are “in addition to , and not ,save as expressly provided , in derogation of the Companies Act , 1956 and any other law for the time being in force” (section 2). For instance, section11 (1) of the companies Act, 1956 which lays down that no company association or partnership consisting of more then persons shall be formed for the purposes of carrying on the business of banking, unless it is registered as a company, is still applicable, although there is no such provision in the Banking Regulation Act, it must be added that the Act deals with banking companies and corporations and does not purport to codify the law of banking. It is mainly a regulatory act, meant to regulate the functioning of banking companies and corporations.

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EVOLUTION OF BANK

In modern age, Banking constitutes the fundamental basis of economic growth. The term bank is being used since long time but there is no clear conception regarding its beginning. According to some authorities, the word “bank” itself is derived from the words “bancus” or “banque”, that is, a banch. The early banker failed his “banco” was broken up by the people. Hence the word “bank” is originally derived from the German word “bank” meaning a joint stock fund, In simple words, bank refers to an institution which accepts deposits from the people, gives loans, creates credit and undertakes agency work.

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Banking structure in INDIA

))) Banking in India originated in the last decades of the 18th century. The oldest bank in existence in India is the State Bank of India, a government-owned bank that traces its origins back to June 1806 and that is the largest commercial bank in the country. Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980. ))) Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake), 31 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over Page

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IndusInd Bank 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively

Early history of banking in INDIA ))) 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 the Bank of Hindustan, both of which 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. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1925 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India. ))) Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India. It was not the first though. That honor belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla. ))) When the American Civil War stopped the supply of cotton to Lancashire from the Confederate States, promoters opened banks to finance trading in Indian cotton. With large exposure to speculative ventures, most of the banks opened in India during that period failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. ))) Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondichery, then a French colony, followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking center.

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The Bank of Bengal, which later became the State Bank of India. ))) The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in 1895, which has survived to the present and is now one of the largest banks in India. ))) Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians had established small banks, most of which served particular ethnic and religious communities. ))) The presidency banks dominated banking in India but there were also some exchange banks and a number of Indian joint stock banks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally under capitalized and lacked the experience and maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon to observe, ))) The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India. ))) The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district. Four nationalised banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking"

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From World War I to Independence ))) The period during the First World War (1914-1918) through the end of the Second World War (1939-1945), and two years thereafter until the independence of India were challenging for Indian banking. The years of the First World War were turbulent, and it took its toll with banks simply collapsing despite the Indian economy gaining indirect boost due to warrelated economic activities. At least 94 banks in India failed between 1913 and 1918 as indicated in the following table:

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1914

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13

231

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9

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25

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7

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Post-independence ))) The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal, paralyzing banking activities for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included: In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India. In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India." The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors. However, despite these provisions, control and regulations, banks in India except the State Bank of India, continued to be owned and operated by private persons. This changed with the nationalization of major banks in India on 19 July, 1969.

Nationalization ))) By the 1960s, the Indian banking industry has become an important tool to facilitate the development of the Indian economy. At the same time, it has emerged as a large employer, and a debate has ensued about the possibility to nationalise the banking industry. Indira Gandhi, the-then Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization." The paper was received with positive enthusiasm. Thereafter, her move

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IndusInd Bank was swift and sudden, and the GOI issued an ordinance and nationalised the 14 largest commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August, 1969. A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the GOI controlled around 91% of the banking business of India. Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalised banks from 20 to 19. After this, until the 1990s, the nationalised banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy.

Liberalisation In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks.

Banks and their growth rate : Private Banks’ growth in assets, deposits and advances vis-à-vis PSBs and foreign banks is significantly higher over a period of five years between 2001-02 to 2005-06. Private Banks recorded a compounded annual growth rate (CAGR) of 18.6% in total assets while total deposits and advances grew 24.19% and 24.29%, respectively. In the case of PSBs, the CAGR of total assets, deposits and advances was 10.92%,10.53% and 17.04% respectively. For foreign banks, total assets, deposits and advances grew at a CAGR of 16.09%, 16.2% and 17.02% respectively.

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IndusInd Bank “ The higher growth rates among private banks is partly explained by the base effect as well as by the greater lending opportunities in the consumer loan segment, support by the rapid roll-out of a pan-India branch network and equity infusionns to fund the growth,” Ananda Bhoumik, senior director, Fitch Ratings India said. India’s largest private sector bank, ICICI bank showed a 19.15% CAGR of total assets as against 38.76% CAGR of deposits and 25.45% CAGR of advances during the study period. On the other hand SBI, the largest commercial bank also showed a 7.22% CAGR of total assets as against 7.03% and 16.71% of deposits and advances respectively during the last five years. But Citibank N.A ,the largest foreign bank in terms of deposits showed a 16.16% CAGR of total assets as against 12.86% and 16.52% of deposits and advances respectively between 2001-02 to 2005-06. In actual value terms, the total assets of 20 private sector banks steadily climbed up from Rs 2,32,697 crore in 2001-02 to Rs 5,45,979 crore in 2005-06. The total deposits of these private banks also steadily moved up from Rs 1,37,405 crore to Rs 4,05,920 crore in the same period. The total advances of these banks also saw a forward momentum from Rs 1,00,811 crore in 2001-02 to Rs 2,99,033 crore in 2005-06. Among the 20 private banks, the highest CAGR in total assets was seen in Kotak Mahindra Bank (47.35%) followed by UTI Bank (28.19) and HDFC Bank (25.31%). The total assets of Kotak Mahindra Bank steadily rose from 1464.63 crore in 2001-02 to 10,175.11 crore in 2005-06.Similarly in the case of foreign banks, the highest CAGR in total assets was seen Barclays Bank (33.99%) and ABN Amro Bank NV (25.89%).

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MAJOR BANKS IN INDIA

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Allahabad Bank ABN AMRO Bank Bank Of America Bank Of India Barclays Bank PLC Citibank Hongkong Shanghai Banking Corporation Ltd(HSBC) ICICI Bank Ltd IDBI Bank Ltd IndusInd Bank Ltd Industrial Development Bank Of India Punjab National Bank Standard Chartered Bank State Bank Of India

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IndusInd Bank Canara Bank India HDFC Bank India Union Bank Of India YES BANK India Punjab and Sind Bank Kotak Mahindra Bank State Bank of Patiala Oriental Bank of Commerce Axis Bank UCO Bank

New-age banks gain market share

Press Trust Of India / Mumbai March 13, 2008

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Banks such as Federal Bank, South Indian Bank and City Union Bank are losing out in market share to their new age counterparts in the private sector, said a study which also named ICICI Bank and SBI as the best banks in their respective categories.

However, old-time private sector banks continue to fare better in the growth of net profits, said research company Dun & Bradstreet’s report on ‘India’s top banks’.

The D&B report has found that public sector banks accounted for 74 per cent of total deposits, 73 per cent of total advances and 64 per cent of aggregate net profits among the scheduled commercial banks. On the other hand, the share of new age private sector banks was in the range of 15-17 per cent, it said.

The D&B report said the annual growth rate of old-time private sector banks stood at 7.1 per cent in assets, six per cent in deposits and 12 per cent in advances.

Banks such as Federal Bank, South Indian Bank, City Union Bank and Karnataka Bank are old-time private sector banks, while ICICI Bank, HDFC Bank and Axis Bank are the new-age banks.

New age private sector banks dominated the growth league tables with an average y-o-y growth in assets at 38.7 per cent, deposits at 38.8 per cent and advances at 39.9 per cent, the report said.

However, old-time private sector banks fared better in terms of profitability which stood at an

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The industry average growth was about 25 per cent for deposits and 31 per cent for advances, the report said.

The report observed that Indian banking sector continues to remain fragmented, with the top 10 banks accounting for 65 per cent and about 40 banks sharing 27 per cent of the assets.

“Fragmentation calls for consolidation, an issue that has not been addressed adequately in the Indian banking industry,” it said.

The study was carried out among 80 scheduled commercial banks, including 28 public sector banks, 23 private sector banks and 29 foreign banks.

Of this, the 37 banks listed on the stock exchanges reported a jump of 52 per cent in profits compared to the previous corresponding period.

State Bank of India tops the list among the public sector banks, while ICICI Bank is the best bank in the private sector.

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IndusInd Bank Citibank stands out as the best foreign sector bank, but loses out to Standard Chartered Bank in terms of profitability.

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Future plans of IndusInd Bank Chennai, January 7:: INDUSIND Bank is actively considering the possibility of acquiring branches as well as taking over the credit portfolios and lines of business of other banks. The bank has also submitted a ‘novel’ proposal to the Reserve Bank of India (RBI) f complying with the mandatory dilution of promoter’s stake. IndusInd Bank managing director Bhaskar Ghose told a select press briefing that “The bank is on an acquisition mood and will look at buying specific lines of business and credit portfolios of other banks including depository services. We are also actively considering a proposal to acquire specific branches of other banks especially those of foreign banks,” he said adding “there are a couple of banks which are closing down their branches for reasons like overlapping of branches and lack of business. We have opened talks with such banks and are expecting to close deals with some of them soon”. However, he refused to reveal the names of these banks saying it was premature.

INDUSIND BANK PLANS TO BUY ROYAL BANK OF SCOTLAND The bank also plans to launch various products for its high-end customers. “We are soon coming up with wealth management products for our non resident Indian customers,” Ghose added. IndusInd Bank has entered the race to buy the Indian operations of the beleaguered Royal Bank of Scotland (RBS). Sources say IndusInd Bank is looking at bidding for the retail and commercial banking business of RBS. CNBC-TV18’s Gopika Gopakumar reports. Indusind Bank has thrown in the hat along with Kotak Mahindra Bank to acquire the Indian operations of the ailing RBS. There’s a connection between the two: Romesh Sobti, IndusInd Bank’s current CEO and Managing Director was the former CEO of ABN AMRO Bank (now known as RBS). RBS’ stats

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IndusInd Bank RBS is looking to sell its commercial and retail operations in India. What are RBS’ statistics? As on March 31, 2008, it has deposits worth Rs 18,911.6 crore, assets worth Rs 36,617.1 crore, while its net profit stands at Rs 280.7 crore. RBS has 31 branches in India and employs 3,000 employees across retail, commercial, corporate banking divisions.

The Challenges To provide top management employees of IndusInd Bank Ltd a secured, single, comprehensive, consistent and web-enabled view of information and intelligence existing in disparate systems across the enterprise. To provide users different ways of looking at the same information scattered across systems (Data "silos" throughout the organization). To reduce the enormous amount of time currently being spent for regulatory reporting due to heterogeneous systems To reduce dependency on manual, error-prone processes and automating financial controls processes such as data integration and report distribution to reduce the number of reports, versions and touch points. To enable integration of key information indicators from a merger of two subdivisions following different lines of business and having their core information in diff systems with completely different platforms and data formats.

Business Benefits, Technical Differentiators Reduced support and maintenance costs Central control over information access and distribution Improved customer service response Improved end user productivity Online availability of customer and business information to corporate and branch users Single format is available for downloading, viewing and printing to customers and end users

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IndusInd Bank Real-time visibility into current data Personalized for different users Finance departments are prepared for period closes Improved efficiency for speed and resource optimization Cached content delivery-no user hitting any operational databases directly

RESEARCH METHODOLOGY

Step1: Program Planning

Step 2:

Step 6:

Start

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CHAPTER-3 RESEARCH METHODOLOGY

This chapter describes the methodology of the study. This project is based on information collected from primary sources. After the detailed study, an attempt has been made to present comprehensive analysis of deposit account used by the customers of the bank. The data had been used to cover various aspects consumer’s preference and customer’s satisfaction regarding deposit account in the bank . In collecting requisite data and information regarding the topic selected, I went to the customers of Indusind bank jalandhar and collected the data. Survey design: The study is a cross sectional study because the data were collected at a single point of time. For the purpose of present study a related sample of population was selected on the basis of convenience. Sample Size and Design: A sample of 20 people was taken on the basis of convenience. The actual consumers were contacted on the basis of random sampling. Research Period: Research work is only carried for 5 or 6 weeks. Research Instrument: This work is carried out through self-administered questionnaires. The questions included were open ended, dichotomous and offered multiple choices.

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Data Collection: The data, which is collected for the purpose of study, is divided into 2 bases: Primary Source: The primary data comprises information survey of “Comparative study of consumer behavior towards deposit scheme of Indusind Bank”. The data has been collected directly from respondent with the help of structured questionnaires. Secondary Source: The secondary data was collected from internet, annual report of bank year(2008-2009) and the pump late provided by the bank. Data Analysis: The data is analyzed on the basis of suitable tables by using mathematical techniques. The technique that I have used is bar, pie, column ,surface, doughnut technique.

Secondary data is used in this study. This study is unstructured because it was not possible to have structured questionnaire owing to the nature of study. Certain project related information is also collected with the help of staff of the company and verbal communication. Sample design:Project was assigned to me by bank itself. Project topic Legal Framework for Financial Management was assigned to me for study by MR. SANDEEP SHARMA(B.M.) Time Duration:This project work was undertaken for duration of 6 weeks. Sources Used:-

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IndusInd Bank Internet website. Books of Banking Information BANK’S Balance sheet. BANK’S Brusher. This chapter is about information sources used to make project. Chapter provides information about Research Methods used by me during summer training program to prepare this project report. Information collected for this project is from most reliable and best possible means available to me during my training course .it is all about to take deposit from customer and provide him services as fast as possible. Project give due importance to legal framework for deposit schemes.

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Limitations In attempt to make this project authentic and reliable, every possible aspect of the topic was kept in mind. Nevertheless, despite of fact constraints were at play during the formulation of this project. The main limitations are as follows: Main limitation of deposits schemes is that from the point of view of income tax department is that the holder of the account when make a fixed deposit in the bank with Rs. 2lac and got rate of interest of 7.5% for one year. With this his annual income from interest is Rs. 15000. But instead of this bank or the relationship officers of the bank gave suggestion that how account holder can save tax. The account holder can make fixed deposits in 2 parts 1lac-1lac and can save tax, so this is the main limitation of the deposits schemes. Due to limitation of time only few people were selected for the study. So the sample of consumers was not enough to generalize the findings of the study. The main source of data for the study was primary data with the help of selfadministered questionnaires. Hence, the chances of unbiased information are less. People were hesitant to disclose the true facts.

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CHAPTER-4 DATE PRESENTATION AND ANALAYSIS

GRAPH FOR THE PERSONS HAS ACCOUNT IN INDUSIND BANK OR NOT

I had asked question from 20 people resident of jalandhar, regular visitors in IndusInd bank. In my 1st question all the customers has account In the IndusInd bank.

GRAPH SHOWING THAT CUSTOMERS HAVE WHICH ACCOUNT

10 persons has saving account, 3 has current account, 1 has nri account, 1 has f.d.

GRAPH SHOWING THE TIME PERIOD OF ACCONT

7 persons has started their account from less than one year, 8 customers from above 5 years

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IndusInd Bank And 2 from 3-5 years, and 3 from 1-3 years.

GRAPH SHOWING THE WORK OF CUSTOMERS

3 are businessman, 8 are employees,2 students, 7 has any other occupation.

GRAPH SHOWING THE ANNUAL INCOME OF THE CUSTOMER

1-2 lac 5 customers, 2-3 lac 6 customers , 3-above 9 customers.

GRAPH SHOWING THAT HOW MUCH BALANCE CUSTOMERS MAINTAIN

0-2500 8 customers, 2500-5000 6 customers, 5000-above 6.

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GRAPH SHOWING THE CUSTOMER RESPONSE REGARDING DEALING OF STAFF

What do you want in current account?

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IndusInd Bank 6-cheque alert on mobile,6 home banking, 9- overdraft facility What do you want in saving account?

6-demat account,8-recurring,6-sweep account

Do you want e-statement of your account on your e-id?

2-no and rest 18-yes Are you aware with RTGS/NEFT?

11-NO, 9-YES

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CHAPTER-5 Summary On the whole I would like to summarize my whole of the project that the deposit schemes of the IndusInd bank are very good. The schemes are of that kind that a businessman can maintain his account over here and also a laborer can maintain his account here. bank has account for NRI- (NRO and NRE)persons and for a student- no frill account in which they provide free atm, free first cheque book, internet banking, mobile banking, phone banking. Bank has account which starts from rs.2500 that is Indus classic. From 5000 Indus privilege. Society/TRUST zero balance account. Current account with exelent facilities. Fixed deposit with very good rate of interest. Demat account for online share purchasing. Young saver account for children. Indus money for long term investment purpose. Sweep account for taking the benefits of both saving and fixed deposit at the same time in one account.

Conclusions The first of all I would like to say that the time that I had spend in IndusInd bank will always be in my mind because in my training period I came to know that how a private bank provide service to customer really mind blowing, amazing. Weather it is about dealing with customers, timing every thing. Even I don’t have words to explain the service and dealing of IndusInd bank I have my account in bank (Public sector bank).They don’t even talk In a good manner with a customer. When I gone to bank for open account over there in my hometown then a clerk said to me that, why you are here? Why you want to keep you’re your account over here?Do you already have account in any bank- then I said yes I had in ICICI. He replied then go to that bank we don’t need account; we don’t had much time to deal with customers. So at last I want to say that service is exelent here, dealing is also exelent, and deposit schemes are amazing.

Recommendation/suggestions There should be system like in forgien countries that employee on every counter can deal with every customer, that is he can take deposit from him he cashed his cheque. Bank should increase in number of branches in all over India. Number of ATM should be increased.

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IndusInd Bank Number of employees for banking operation should be increased. There should be more advertisement of the bank, because mostly people are not aware about the name of the bank. Bank should use some promotional strategies. Area of the branch should be wide.

APPENDIX

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QUESTIONNAIRE “DEPOSITS SCHEMES OF INDUSIND BANK”

I, VIKAS MAHAJAN student of MBA III Semester at Lovely Professional University, Phagwara is conducting a research on topic “DEPOSIT SCHEMES OF INDUSIND BANK ”. Kindly help me to gather the information by sparing your 10-15 minutes for filling the questionnaire. I will be very thankful. I assure you that the information will be kept confidential. DEMOGRAPHIC PROFILE NAME: __________________________ AGE:

20-25 

GENDER:

35-40

25-30

30-35

40-45

Male

Above 45

Female

QUALIFICATION: MONTHLY INCOME:

10000-20000 • 20000-30000 • 30000-40000 • 40000-ABOVE

CONTACT NO. ADDRESS

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Que 1

Do you have account in this bank? Yes No

Que 2

Which type of account do you have? Saving Current Nri account Any other plz... Specify

Que 3 For how long do you have been account in this bank? Less than one year One to three year Three to five

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Que 4 What is your occupation? Businessman Employee Student ○ Any other plz... Specify_____________

Que 5

What is your annual income? 100000-200000 200000-300000

300000-above

Que 6 How much money do you want to invest in the bank? 0-2500 2500-5000 5000-above

Que7 Do you have account in any other bank? If have, please specified__________________________

Que 8 Are you satisfied with the services provided by this Yes No If not please specify____________________________

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IndusInd Bank Que9 Do you want to avail services of any other account in our bank if yes then specify the name of the account….. ________________________________________

Que 10 Are u aware with RTGS/NEFT services of the bank? Yes No

Que 11 what do you want in current account? Cheque alert on mobile Home banking facility Overdraft facility Que 12 what do you want in saving account? Demat account facility Sweep account facility Recurring facility

Que 13 Do you want advanced technological features in your account…. Like – internet banking Mobile banking Phone banking Personalized banking Home banking facility AnsYes Page

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IndusInd Bank No Que 14 Do you want that a call is made to you when a cheque has come for payment in bank from your account(from third party)? Yes No

Que 15 Do you want monthly statement of your account on your e-mail id? Yes No

Que 16 Why do you prefer this bank? Good services Atm facility With in your reach Any other plz... Specify…………..

Que 17 What attracted you to open account in this bank? Fame of the bank Location Good services

Que 18 Dealing of Staff is good”

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Response Highly disagree Disagree Neutral Agree Highly agree

Rate of Return in case of INDUS MONEY total

5yrs

10yrs

15yrs

20yrs

investment

6lac

12lac

18lac

24lac

8%

7.34l ac

18.13l ac

33.98l ac

57.27la c

12%

8.11l ac

22.40l ac

47.59l ac

91.99la c

15%

8.73l ac

26.30l ac

61.64l ac

132.71l ac

20%

9.87l ac

34.43l ac

95.55l ac

247.62l ac

rate of return

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FINANCIAL PERFORMANC E OF IndusInd Bank • IndusInd Bank Q3 Net Profit at Rs. 45.06 crore, up by 80 % • Non Interest Income to Total revenues at 53% • Other Income up by 79% • Net NPA down by 112 bps at 1.30 % Performance Highlights at a glance: Q3 Fy08

Q3 YoY (%) 9month Fy09 Growth Fy08

9month YoY (%) Fy09 Growth

Net Profit (Rs crore)

25.04 45.06

80

60. 60

97. 82

61

Operating Profit (Rs crore)

64.96 104.00

60

144.91

216.96

50

NII (Rs crore)

89.78 116.58

30

213.84

314.76

47

Other Income

74.31 133.07

79

222.13

286.93

29

Net NPA

2.42%

1.30% 112 bps

Performance highlights for the quarter ended December 31, 2008 are: • Net Interest Income (NII) was Rs 116.58 crore as compared to Rs 89.78 crore in the corresponding quarter of the previous year, registering a robust growth of 30%. • Operating Profit for the quarter was Rs 104 crore as against Rs 64.96 crore in the corresponding quarter of the previous year, up 60% YoY. The Operating Profit sequentially moved from Rs. 67.09 crores to Rs. 104 crore, thereby registering a significant rise of 55% • Net Profit for the quarter was Rs 45.06 crore as against Rs 25.04 crore in the corresponding quarter of the previous year up by 80% YoY. Sequentially, Net

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IndusInd Bank Profit up by 34%, with an increase from Rs.33.66 crore to Rs. 45.06 crore. • Net Interest Margin (NIM) for the current quarter was 1.95% as against 1.74% in the corresponding quarter of the previous year. Post amortization, the same works out to 1.81 % as against 1.57% • Capital Adequacy Ratio as on December 31, 2008 was 12.40 % as against 12.04% at the end of December 31, 2007. • Other Income grew by 79% Performance highlights for the 9-month period ended December 31, 2008 are: • Net Interest Income (NII) was Rs. 314.76 crore as compared to Rs 213.84 crore in the corresponding period of the previous year, up 47%. • Operating Profit for the 9-month period ended December 31, 2008 was Rs 216.96 crore as against Rs 144.91 crore in the corresponding period of the previous year, up 50 %.` • Net Profit for the 9-month period ended December 31, 2008 was Rs 97.82 crore as against Rs 60.60 crore in the corresponding period of the previous year, up 61%. • The CASA (Current Accounts-Savings Accounts) ratio improved to 18.39% • As on December 31, 2008 the total Advances were at Rs 14383 crore and total Deposits were at Rs 20634 crore Commenting on the performance, Mr. Romesh Sobti, MD & CEO, IndusInd Bank said, “For 3 Quarters running now, the Bank has registered robust growth under all heads and I am confident that we are on track for achieving our business goals as outlined in the beginning of this financial year”. Adding further, he said, “We witnessed positive developments during this Quarter which have placed us in growth trajectory even during difficult market conditions. On our NPA side, there have been remedial interventions which brought down our Net NPA ratio significantly to 1.30% from 2.42% in the corresponding Quarter of the previous year. Our Consumer Banking Division has introduced an array of new products to capitalize on new relationships and is confident of delivering superior banking experience to our customers. We have also commenced the branch refurbishment program that will significantly alter the ambience and customer experience at our branches. We are also set to expand our footprint across the country, based on the authorizations received from the Reserve Bank of India to expand our Bank’s network by 30 new branches, 50 new offsite ATMs and 6 mobile ATMs”. At the commencement of the financial year the Bank had set the target of hiring approximately 1300 new recruits at all the levels. Till now the Bank has successfully added 1250 fresh recruits out of which 182 have been added in Q3 itself. The new client acquisition program – supported by a slew of new client and product Page

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IndusInd Bank initiatives – is going apace with over 3 lakh consumer and 800 corporates signed on. About IndusInd Bank IndusInd Bank Ltd. is one of the new-generation private-sector banks in India which commenced its operations in 1994. The Bank currently has a network of 180 branches, spread over 147 geographical locations in 28 states and union territories across the country. The Bank also has a Representative Office each in Dubai and London. The Bank is driven by state-of-the-art technology since its inception. It has multi-lateral tie-ups with other banks providing access to more than 18000 ATMs for its customers. It enjoys clearing bank status for both major stock exchanges - BSE and NSE - and three major commodity exchanges in the country – MCX, NCDEX, and NMCE. It also offers DP facilities for stock and commodity segments. IndusInd Bank has been awarded the highest A1+ rating for its Certificates of Deposit by ICRA and the highest P1+ rating for its Fixed Deposits and Certificates of Deposit by CRISIL. In recent past, the Bank was awarded The Smart Workplace Award by Economic Times in association with Acer and Intel for enhancing the productivity of the employees through optimum use of resources as well as technology.

Business highlights 2008-09 Total profit crossed Rs.37800 crores Net profit up by 98% to Rs.148.34 crores Net interest income up by 53% to Rs.459.03 crores Fee and other income up by 53% to Rs.456.24 crores Net N.P.A. at 1.14% as compared to 2.27% as on march 31,2008 Net worth moved to Rs. 1429 crores Earning per share increased to Rs.4.28 from Rs.2.35 Capital adequacy ratio stood at 12.33% as against the minimum regulatory norm of 9% Highest A1+rating for its certificate of deposit by ICRA and the highest P1+ratin for its deposits and certificates of deposit by CRISIL Dividend declared 12% up from 6% Mandated as settlement banker for tea auctions at Kolkata, Siliguri Bagged Economic times Acer Intel smart workplace award, in the financial services Page

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IndusInd Bank category. Share price of IndusInd Bank is around Rs.90 and there is a movement of 2-5Rs. In the share price of IndusInd Bank now a days.

Bibliography Company History information is available through following sources: Official website of company: IndusIndbank.com

Units of company and their other details are available through: Official site of company Page

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Annual results and financial details are collected from: Balance sheets of company http://www.indusind.com/downloaddepositschemesrr http://induswealth.indusind.com/mutualfund/website/nsc/index.asp http://www.wikiinvest.com/index/bse_bankex(bsebk) http://www.webindia123.com/finance/bank/fix/html http://wwfhummel.cnchost.com/money_quiz.html http://enwikipedia.org/wiki/banking_in_india http://enwikipedia.org/wiki/deposit_account http://enwikipedia.org/wiki/hinduja_group http://enwikipedia.org/wiki/history_of_banking www.hindujagroup.com http://www.banknetindia.com/stock/bankex.html Sharma.k.shashi, (2006), theories of banking, kalyani publications.

Businessinfo.com Managementparadise.com Hand Book Of Banking Information Bank of India Financeguru.com Other bank sites RBI guidelines(Google Search) Wikipedia.com Handbook of Banking Information by N.S.Toor 28th Edition. Banking industry act,1949,GOVT. OF INDIA Banker (JOURNAL FOR BANKS)

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