RESEARCH PROJECT

ON

COMPARISON OF PERFORMANCE
OF NATIONALIZED BANKS &
PRIVATE BANKS

Submitted to

KURUKSHETRA UNIVERSITY, KURUKSHETRA

In partial fulfillment of the requirement for the degree of
MASTERS OF BUSINESS ADMINISTRATION (MBA)
(Session 2006-2008)

UNDER THE GUIDANCE OF: Submitted by:

Prof. GIRIDHAR GOPAL NEHA JAIN
Faculty, MMIM Roll no: 1562
MBA 4TH SEM

MAHARISHI MARKANDESHWAR INSTITUTE OF

MANAGEMENT, MULLANA
 Index

(A) Declaration
(B) Preface
(C) Acknowledgement
Chapter 1 - Introduction to Banking industry
Chapter 2 - Privatization of Banking Sector
Literature review
Chapter 3 - Research Methodology
i) Introduction
ii) Objective Of Study
iii) Plan Of Study
iv) Type & Techniques Of Research
v) Sources Of Data
vi) Sample Plan
vii) Analysis & Interpretation
viii) Limitations Of Study
Chapter 4
Chapter 5 Profile of top 5 Nationalized and 5 Private Banks
Chapter 6 - & Data Analysis interpretation
Chapter 5 Findings Suggestion

conclusion
Bibliography
 PREFACE

Practical training is an important part of the theoretical studies. It is of an

immense importance in the field of management. It offers the student to
explore the valuable treasure of experience and an exposure to real work
culture followed by the industries and there by helping the students to
bridge gap between the theories explained in the books and their practical
implementations.
Research Project plays an important role in future building of an
individual so that he/she can better understand the real world in which he
has to work in future. The theory greatly enhances our knowledge and
provides opportunities to blend theoretical with the practical knowledge.
I have completed the Research Project on COMPARISON OF
PERFORMANCE OF NATIONALIZED BANKS & PRIVATE BANKS
I have tried to cover each and every aspect related to the topic with best
of my capability.
I hope research would help many.
 ACKNOWLEDGEMENT

Today after completing my project report, I feel a great relief &

satisfaction. Now when I look back, I still remember the day when I was
assigned this project COMPARISON OF PERFORMANCE OF
NATIONALIZED BANKS AND PRIVATE BANKS. I was somewhat
puzzled & a bit nervous & curious about the project.

This project work would have been simply incomplete without the
acknowledgement of those people who have hand behind in its success.
Perseverance, inspiration and motivation have always played a great role
in the success of any venture. At this level of understanding it is often
difficult to understand the wide spectrum of knowledge without proper
guidance and advice.

First of all, I would like to thank the supreme power, the almighty
GOD, who is really responsible for the satisfactory completion of my
project work. Secondly, MY PARENTS, whom I am greatly indebted
having brought me up with love & encouragement throughout my student
life.

I love to thank Mr. Giridhar Gopal, lecturer of MMIM for his

inimitable support and constructive criticism in completing this project.
Last but not the least I would like to express my gratitude to Dr. Sanjiv
Marwah (Director) who have provided me with the opportunity to work
on this project report.
Introduction To Bank
 MEANING OF BANK

A banker or bank is a financial institution that acts as a payment agent for customers,
and borrows and lends money

The first modern bank was founded in Italy at Genoa in 1406, its name was "Banco di
San Giorgio" (Bank of St. George).

Banks act as payment agents by conducting checking or current accounts for

customers, paying cheques drawn by customers on the bank, and collecting cheques
deposited to customers' current accounts. Banks also enable customer payments via
other payment methods such as telegraphic transfer, EFTPOS, and ATM.

Banks borrow money by accepting funds deposited on current account, accepting term
deposits and by issuing debt securities such as banknotes and bonds. Banks lend
money by making advances to customers on current account, by making installment
loans, and by investing in marketable debt securities and other forms of lending.

Banks provide almost all payment services, and a bank account is considered
indispensable by most businesses, individuals and governments. Non-banks that
provide payment services such as remittance companies are not normally considered
an adequate substitute for having a bank account.

Banks borrow most funds borrowed from households and non-financial businesses,
and lend most funds lent to households and non-financial businesses, but non-bank
lenders provide a significant and in many cases adequate substitute for bank loans,
and money market funds, cash management trusts and other non-bank financial
institutions in many cases provide an adequate substitute to banks for lending savings
to.

Banks are critical to our economy. The primary function of banks is to put their
account holders' money to use by lending it out to others who can then use it to buy
homes, businesses, send kids to college...
When you deposit your money in the bank, your money goes into a big pool of
money along with everyone else's, and your account is credited with the amount of
your deposit. When you write checks or make withdrawals, that amount is deducted
from your account balance. Interest you earn on your balance is also added to your
account.

DEFINITION OF BANK: -

According to Britannica.com, a bank is:

an institution that deals in money and its substitutes and provides other
financial services. Banks accept deposits and make loans and derive a profit
from the difference in the interest rates paid and charged, respectively.
Definition: An establishment for the custody, loan, exchange, or issue, of money, and
for facilitating the transmission of funds by drafts or bills of exchange; an institution
incorporated for performing one or more of such functions, or the stockholders (or
their representatives, the directors), acting in their corporate capacity.

Definitions of banking:
engaging in the business of keeping money for savings and checking accounts or for
exchange or for issuing loans and credit etc.
transacting business with a bank; depositing or withdrawing funds or requesting a
loan etc.
A bank is a business which provides financial services for profit. Traditional banking
services include receiving deposits of money, lending money and processing
transactions. Some banks (called Banks of issue) issue bank notes as legal tender.

Economic functions
The economic functions of banks include:

1. issue of money, in the form of banknotes and current accounts subject to

cheque or payment at the customer's order. These claims on banks can act as
money because they are negotiable and/or repayable on demand, and hence
valued at par and effectively transferable by mere delivery in the case of
banknotes, or by drawing a cheque, delivering it to the payee to bank or cash.
2. netting and settlement of payments -- banks act both as collection agent and
paying agents for customers, and participate in inter-bank clearing and
settlement systems to collect, present, be presented with, and pay payment
instruments. This enables banks to economise on reserves held for settlement
of payments, since inward and outward payments offset each other. It also
enables payment flows between geographical areas to offset, reducing the cost
of settling payments between geographical areas.
3. credit intermediation -- banks borrow and lend back-to-back on their own
account as middle men
4. credit quality improvement -- banks lend money to ordinary commercial and
personal borrowers (ordinary credit quality), but are high quality borrowers.
The improvement comes from diversification of the bank's assets and the
bank's own capital which provides a buffer to absorb losses without defaulting
on its own obligations. However, since banknotes and deposits are generally
unsecured, if the bank gets into difficulty and pledges assets as security to try
 to get the funding it needs to continue to operate, this puts the note holders and
depositors in an economically subordinated position.
5. maturity transformation -- banks borrow more on demand debt and short term
debt, but provide more long term loans. Bank can do this because they can
aggregate issues (e.g. accepting deposits and issuing banknotes) and
redemptions (e.g. withdrawals and redemptions of banknotes), maintain
reserves of cash, invest in marketable securities that can be readily converted
to cash if needed, and raise replacement funding as needed from various
sources (e.g. wholesale cash markets and securities markets) because they
have a high and more well known credit quality than most other borrowers.

Types of Banks

1. central bank

The central bank, reserve bank, or monetary authority, is the entity

responsible for the monetary policy of a country or of a group of member
states. Its primary responsibility is to maintain the stability of the national
currency and money supply, but more active duties include controlling
subsidized-loan interest rates, and acting as a "bailout" lender of last resort
to the banking sector during times of financial crisis (private banks often
being integral to the national financial system). It may also have
supervisory powers, to ensure that banks and other financial institutions do
not behave recklessly or fraudulently.

The central bank of the country is the Reserve Bank of India (RBI). It was established in April
1935 with a share capital of Rs. 5 crores on the basis of the recommendations of the Hilton
Young Commission. The share capital was divided into shares of Rs. 100 each fully paid
which was entirely owned by private shareholders in the begining. The Government held
shares of nominal value of Rs. 2,20,000.

Reserve Bank of India was nationalised in the year 1949. The general superintendence and
direction of the Bank is entrusted to Central Board of Directors of 20 members, the Governor
and four Deputy Governors, one Government official from the Ministry of Finance, ten
nominated Directors by the Government to give representation to important elements in the
economic life of the country, and four nominated Directors by the Central Government to
represent the four local Boards with the headquarters at Mumbai, Kolkata, Chennai and New
Delhi. Local Boards consist of five members each Central Government appointed for a term of
four years to represent territorial and economic interests and the interests of co-operative and
indigenous banks.

The Reserve Bank of India Act, 1934 was commenced on April 1, 1935. The Act, 1934 (II of
1934) provides the statutory basis of the functioning of the Bank.

The Bank was constituted for the need of following:

To regulate the issue of banknotes
To maintain reserves with a view to securing monetary stability and
To operate the credit and currency system of the country to its advantage.

Functions of Central Bank

The Reserve Bank of India Act of 1934 entrust all the important functions of a central bank the
Reserve Bank of India.

Bank of Issue

Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to issue bank
notes of all denominations. The distribution of one rupee notes and coins and small coins all
over the country is undertaken by the Reserve Bank as agent of the Government. The
Reserve Bank has a separate Issue Department which is entrusted with the issue of currency
notes. The assets and liabilities of the Issue Department are kept separate from those of the
Banking Department.

Banker to Government

The second important function of the Reserve Bank of India is to act as Government banker,
agent and adviser. The Reserve Bank is agent of Central Government and of all State
Governments in India excepting that of Jammu and Kashmir. The Reserve Bank has the
obligation to transact Government business, via. to keep the cash balances as deposits free
of interest, to receive and to make payments on behalf of the Government and to carry out
their exchange remittances and other banking operations. The Reserve Bank of India helps
the Government - both the Union and the States to float new loans and to manage public
debt. The Bank makes ways and means advances to the Governments for 90 days. It makes
loans and advances to the States and local authorities. It acts as adviser to the Government
on all monetary and banking matters.

Bankers' Bank and Lender of the Last Resort

The Reserve Bank of India acts as the bankers' bank. According to the provisions of the
Banking Companies Act of 1949, every scheduled bank was required to maintain with the
Reserve Bank a cash balance equivalent to 5% of its demand liabilites and 2 per cent of its
time liabilities in India. By an amendment of 1962, the distinction between demand and time
liabilities was abolished and banks have been asked to keep cash reserves equal to 3 per
cent of their aggregate deposit liabilities. The minimum cash requirements can be changed by
the Reserve Bank of India.

The scheduled banks can borrow from the Reserve Bank of India on the basis of eligible
securities or get financial accommodation in times of need or stringency by rediscounting bills
of exchange. Since commercial banks can always expect the Reserve Bank of India to come
to their help in times of banking crisis the Reserve Bank becomes not only the banker's bank
but also the lender of the last resort.

Controller of Credit

The Reserve Bank of India is the controller of credit i.e. it has the power to influence the
volume of credit created by banks in India. It can do so through changing the Bank rate or
through open market operations. According to the Banking Regulation Act of 1949, the
Reserve Bank of India can ask any particular bank or the whole banking system not to lend to
particular groups or persons on the basis of certain types of securities. Since 1956, selective
controls of credit are increasingly being used by the Reserve Bank.

As supereme banking authority in the country, the Reserve Bank of India, therefore, has the
following powers:
(a) It holds the cash reserves of all the scheduled banks.

(b) It controls the credit operations of banks through quantitative and qualitative controls.

(c) It controls the banking system through the system of licensing, inspection and calling for
information.

(d) It acts as the lender of the last resort by providing rediscount facilities to scheduled banks.

Custodian of Foreign Reserves

The Reserve Bank of India has the responsibility to maintain the official rate of exchange.
Besides maintaining the rate of exchange of the rupee, the Reserve Bank has to act as the
custodian of India's reserve of international currencies. The vast sterling balances were
acquired and managed by the Bank. Further, the RBI has the responsibility of administering
the exchange controls of the country.

Supervisory functions

In addition to its traditional central banking functions, the Reserve bank has certain non-
monetary functions of the nature of supervision of banks and promotion of sound banking in
India. The Reserve Bank Act, 1934, and the Banking Regulation Act, 1949 have given the RBI
wide powers of supervision and control over commercial and co-operative banks, relating to
licensing and establishments, branch expansion, liquidity of their assets, management and
methods of working, amalgamation, reconstruction, and liquidation. The RBI is authorised to
carry out periodical inspections of the banks and to call for returns and necessary information
from them. The supervisory functions of the RBI have helped a great deal in improving the
standard of banking in India to develop on sound lines and to improve the methods of their
operation.

Promotional functions

With economic growth assuming a new urgency since Independence, the range of the
Reserve Bank's functions has steadily widened. The Bank now performs a varietyof
developmental and promotional functions, which, at one time, were regarded as outside the
normal scope of central banking. The Reserve Bank was asked to promote banking habit,
extend banking facilities to rural and semi-urban areas, and establish and promote new
specialised financing agencies.

Classification of RBIs functions

The monetary functions also known as the central banking functions of the RBI are related to
control and regulation of money and credit, i.e., issue of currency, control of bank credit,
control of foreign exchange operations, banker to the Government and to the money market.
Monetary functions of the RBI are significant as they control and regulate the volume of
money and credit in the country.

2. Commercial banks

It raises funds by collecting deposits from businesses and consumers via

checkable deposits, savings deposits, and time (or term) deposits. It grants
different loans to businesses and consumers like secured loans,
unsecured loans, mortgage loans. It also buys corporate bonds and
government bonds. Its primary liabilities are deposits and primary assets
are loans and bonds.

The role of commercial banks

Commercial banks engaged in the following activities:

processing of payments by way of telegraphic transfer, EFTPOS,

internet banking or other means
issuing bank drafts and bank cheques
accepting money on term deposit
lending money by way of overdraft, installment loan or otherwise
providing documentary and standby letter of credit, guarantees,
performance bonds, securities underwriting commitments and other
forms of off balance sheet exposures
safekeeping of documents and other items in safe deposit boxes
currency exchange
sale, distribution or brokerage, with or without advice, of insurance,
unit trusts and similar financial products as a financial supermarket

3. co-operative banks
the co-operative banks are institutions established with principle of co-operation. The
objective of such organizations is to facilitate rural credit & to promote thrift and self-
help among the economically weaker sections of the society. Like commercial banks,
the co-operative banks also received deposits and lend money. But they lend money to
their members and make incidental profits, although their sole objective is not profit
earning. In other words, The potential advantages of a co-operative bank
were seen broadly. It would, for instance, be able to bring together co-
operative retail societies which had surplus funds, and co-operative
production which lacked the capital required for further development. The
bank would provide money for expansion in a boom and help societies out
during a downturn in the trade cycle, and hence insulate the movement
from the vagaries of capitalism; it also provided an opportunity to be more
independent of outside financial control. This was also part of the principle
of mutual self-help.

4. Industrial Bank
An industrial loan company (ILC) or industrial bank is a financial
institution in the United States that lends money, and may be owned by
non-financial institutions.
The industrial banks provide long term loans and supply fixed capital to
industrial concerns by subscribing to the shares and debentures floated by
the companies. As they have financed the share capital, the industrial
banks play an important role in the management and administration of the
companies. The industrial banks have acted as underwriters in the
floatation of new industrial concerns. In addition to this, trhey also arrange
for medium- term loans. But in india, we have a numberof financial
corporations, development corporations and investment corporations
acting as industrial development banks.
5. development banks

in india, development banks were set up to cater to needs of agriculture &

industries. Development banks provide long term and medium term loans.
They also play an important role in promoting investment projects,
underytaking project reports and providing technical advice and
managerial services. In short, the development banks play the role of
finance corporations and development corporation. A number of
financial corporations and banks have been set up at the central and state
level to promote agricultural and industrial development in our country.
6. Exchange Banks:
 These are also commercial banks engaged in the foreign exchange
transactions. They also received deposits and lend money. They build
up balances abroad by purchasingclaims to foreign currencies. They
also sell these proceeds to the importers. They act as businessmen in
buying & selling foreign currencies or claims to foreign exchange. This
bank also grant loans to the exporters and importers.
7. indigenous banks:
the indian central banking enquiry committee has defined an indigenous
banker as an individual or private firm receiving deposits and dealing in
hundis or lending money. The indigenous bankers have their own code of
conduct. They dont have to follow the RBIs directuives and procedures.
This bank deals with agriculturilists and small businssmen.

8. Regional Rural Banks:

The objective of establishing the Regional Rural Banks was to develop the
rural economy by developing agriculture, trade, commerce and industry
and other productive activities in the rural areas. In shoet, the Regional
Rural Banks are to act as an alternative agencyto provide institutrional
credit in the rural areas and to replace the money lenders in course of
time. At the same time, the RRBs should supplement the activities of co-
operative banks.

Banking services in India

With years, banks are also adding services to their customers. The Indian banking industry is
passing through a phase of customers market. The customers have more choices in choosing
their banks. A competition has been established within the banks operating in India.

With stiff competition and advancement of technology, the services provided by banks has
become more easy and convenient. The past days are witness to an hour wait before
withdrawing cash from accounts or a cheque from north of the country being cleared in one
month in the south.

This section of banking deals with the latest discovery in the banking instruments along with
the polished version of their old systems.
1. Bank Account

Open bank account - the most common and first service of the banking sector. There are
different types of bank account in Indian banking sector. The bank accounts are as follows:

Bank Savings Account - Bank Savings Account can be opened for eligible person /
persons and certain organisations / agencies (as advised by Reserve Bank of India
(RBI) from time to time)

Bank Current Account - Bank Current Account can be opened by individuals /

partnership firms / Private and Public Limited Companies / HUFs / Specified
Associates / Societies / Trusts, etc.
Bank Term Deposits Account - Bank Term Deposits Account can be opened by
individuals / partnership firms / Private and Public Limited Companies / HUFs/
Specified Associates / Societies / Trusts, etc.
Bank Account Online - With the advancement of technology, the major banks in the
public and private sector has faciliated their customer to open bank account online.
Bank account online is registered through a PC with an internet connection. The
advent of bank account online has saved both the cost of operation for banks as well
as the time taken in opening an account.

Note :- A minor account can be opened but jointly with a guardian and only the
guardian would is allowed to operate the account.

2. Plastic Money

Credit Card

Credit cards in India is gaining ground. A number of banks in India are encouraging people to
use credit card. The concept of credit card was used in 1950 with the launch of charge cards
in USA by Diners Club and American Express. Credit card however became more popular
with use of magnetic strip in 1970.

Credit card in India became popular with the introduction of foreign banks in the country.

Credit cards are financial instruments, which can be used more than once to borrow money or
buy products and services on credit. Basically banks, retail stores and other businesses issue
these.

Major Banks issuing Credit Card in India

State Bank of India credit card (SBI credit card)
Bank of Baroda credit card or BoB credit card
ICICI credit card
HDFC credit card
IDBI credit card
ABN AMRO credit card
Standard Chartered credit card
HSBC credit card
Citibank Credit Card

DEBIT CARDS
Debit cards are also known as check cards. Debit cards look like credit cards or ATM
(automated teller machine) cards, but operate like cash or a personal check. Debit
cards are different from credit cards. While a credit card is a way to "pay later," a
debit card is a way to "pay now." When you use a debit card, your money is quickly
deducted from your checking or savings account.

Debit cards are accepted at many locations, including grocery stores, retail stores,
gasoline stations, and restaurants. You can use your card anywhere merchants display
your card's brand name or logo. They offer an alternative to carrying a checkbook or
cash.

TWO TYPES OF DEBIT CARDS

"On-line" debit cards: These cards usually are enhanced ATM (automated teller
machine) cards which work the same as they would in an ATM transaction. It is an
immediate electronic transfer of money from your bank account to the merchant's
bank account.

To access your account at a store terminal, you must punch in your personal
identification number (PIN), as you would at an ATM. The system checks your
account to see if it has enough money available to cover the transaction.

"Off-line" debit cards: These cards usually look like a credit card and resemble a
credit card transaction. The merchant's terminal reads your card, identifies it as a debit
rather than a credit card, and creates a debit against your bank account. However,
instead of debiting your account immediately, it stores the debit for processing later --
usually within 2-3 days.

Most, but not all, transactions are verified to see if there are adequate funds. Instead,
of using a PIN number, the customer must sign a receipt, as he or she would with a
credit card.

The "on-line" and "off-line" distinction may not matter to you unless:

your financial institution charges transaction or monthly fees.

you prefer the security of a PIN-required transaction.

you prefer that both options not be on one card.

What is the difference between a debit card and a credit card?

It's the difference between "debit" and "credit." Debit means "subtract." When you use
a debit card, you are subtracting your money from your own bank account. Debit
cards allow you to spend only what is in your bank account. It is a quick transaction
between the merchant and your personal bank account.

Credit is money made available to you by a bank or other financial institution, like a
loan. The amount the issuer allows you to use is determined by your credit history,
income, debts, and ability to pay. You may use the credit with the understanding that
you will repay the amount, plus interest if you do not pay in full each month. You will
receive a monthly statement detailing your charges and payment requirements.

3. Loans

Banks in India with the way of development have become easy to apply in loan market. The
following loans are given by almost all the banks in the country:
Personal Loan
Car Loan or Auto Loan
Loan against Shares
Home Loan
Education Loan or Student Loan

In Personal Loan, one can get a sanctioned loan amount between Rs 25,000 to 10,00,000
depending upon the profile of person applying for the loan. SBI, ICICI, HDFC, HSBC are
some of the leading banks which deals in Personal Loan.

Almost all the banks have jumped into the market of car loan which is also sometimes termed
as auto loan. It is one of the fast moving financial product of banks. Car loan / auto loan are
sanctioned to the extent of 85% upon the ex-showroom price of the car with some simple
paper works and a small amount of processing fee.

Loan against shares is very easy to get because liquid guarantee is involved in it.

Home loan is the latest craze in the banking sector with the development of the infrastructure.
Now people are moving to township outside the city. More number of townships are coming
up to meet the demand of 'house for all'. The RBI has also liberalised the interest rates of
home loan inorder to match the repayment capability of even middle class people. Almost all
banks are dealing in home loan. Again SBI, ICICI, HDFC, HSBC are leading.

The educational loan, rather to be termed as student loan, is a good banking product for the
mass. Students with certain academic brilliance, studying at recognised colleges/universities
in India and abroad are generally given education loan / student loan so as to meet the
expenses on tuition fee/ maintenance cost/books and other equipment.

4. Money Transfer
Beside lending and depositing money, banks also carry money from one corner of the globe
to another. This act of banks is known as transfer of money. This activity is termed as
remittance business. Banks generally issue Demand Drafts, Banker's Cheques, Money
Orders or other such instruments for transferring the money. This is a type of Telegraphic
Transfer or Tele Cash Orders.

It has been only a couple of years that banks have jumped into the money transfer
businessess in India. The international money transfer market grew 9.3% from 2003 to 2004
i.e. from US$213 bn. to US$233 bn. in 2004. Economists say that the market of money
transfer will further grow at a cumulative 10.1% average growth rate through 2008.

With the use of high technology and varieties of product it seems that "Free" money transfers
will become commonplace. We will see more bundling of tailored money services by banks
and non-traditional entrants that will include "free" money transfers. Many banks will even use
money transfer services as loss-leaders inorder to generate account openings and cross-sell
opportunities. The price evolution of money transfer products for banks will be similar to that
of consumer bill pay-the product is worth giving away as an account acquisition tool to win
overall market share and establish banking relationships.

ATM money transfer card products have had terrible bank adoption rates since being
introduced in the last three to four years. Remittees who are highly educated and have been
already been exposed to ATM technology in receiving countries tend to have an interest in
this product. Money transfer to India is one of the most important part played by the banks.
This service provide peace of mind to either the NRIs or to the visitors to India. Many Indian
banks have ATM'S (automatic teller machine), enable to draw foreign currency in India.

By 2007, we will see a good percent of all foreign-born households doing some level of online
banking. First-mover banks will start having a window of opportunity to include online transfer
functionality within the next couple of years, which currently frequents traditional money
transmitters such as Western Union. There is a terrific opportunity for banks and non-banks to
offer more robust global inter-institutional funds transfer services online. More than half of
Western Union's customers today are already banked, and most do not have an alternative
product marketed by their bank that is painless, quick, and cost-effective. That will change as
banks offer transfer services through their online channel.

5. Visa Money Transfer

Visa has recently introduced the 'Visa Money Transfer' option for its savings and current
account holder of any bank with a visa debit card. This facility helps its customer to transfer
funds from his bank account to any visa card, either debit or credit within India.

A Visa Money Transfer is of similar kind, in many respects, to the third-party fund transfer
option given by some banks to its account holders through e-cheque, but this is restricted to
only visa cardholders.

How to transfer money?

Log on to your bank account through your respective bank websites.

Fill the beneficiary details like visa card numbers, name, address and then specify the
amount that needs to be transferred. For bank account specify the visa card number
and credit card number for paying credit card bill.
Click on to VISA Transfer Payments button.
Transfer immediately or on schedule date. Your account will be debited according to
the date mentioned.
History Of Banking In India
Without a sound and effective banking system in India it cannot have a healthy economy. The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors.

For the past three decades India's banking system has several outstanding achievements to
its credit. The most striking is its extensive reach. It is no longer confined to only
metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to
the remote corners of the country. This is one of the main reason of India's growth process.

The government's regular policy for Indian bank since 1969 has paid rich dividends with the
nationalisation of 14 major private banks of India.

Not long ago, an account holder had to wait for hours at the bank counters for getting a draft
or for withdrawing his own money. Today, he has a choice. Gone are days when the most
efficient bank transferred money from one branch to other in two days. Now it is simple as
instant messaging or dial a pizza. Money have become the order of the day.

The first bank in India, though conservative, was established in 1786. From 1786 till today, the
journey of Indian Banking System can be segregated into three distinct phases. They are as
mentioned below:

Early phase from 1786 to 1969 of Indian Banks

Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector
Reforms.
New phase of Indian Banking System with the advent of Indian Financial & Banking
Sector Reforms after 1991.

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and Phase
III.

Phase I

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and
Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay
(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks.
These three banks were amalgamated in 1920 and Imperial Bank of India was established
which started as private shareholders banks, mostly Europeans shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indians, Punjab National
Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913, Bank of
India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore
were set up. Reserve Bank of India came in 1935.

During the first phase the growth was very slow and banks also experienced periodic failures
between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline
the functioning and activities of commercial banks, the Government of India came up with The
Banking Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as
per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was vested with
extensive powers for the supervision of banking in india as the Central Banking Authority.

During those days public has lesser confidence in the banks. As an aftermath deposit
mobilisation was slow. Abreast of it the savings bank facility provided by the Postal
department was comparatively safer. Moreover, funds were largely given to traders.

Phase II
Government took major steps in this Indian Banking Sector Reform after independence. In
1955, it nationalised Imperial Bank of India with extensive banking facilities on a large scale
specially in rural and semi-urban areas. It formed State Bank of india to act as the principal
agent of RBI and to handle banking transactions of the Union and State Governments all over
the country.

Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on 19th July,
1969, major process of nationalisation was carried out. It was the effort of the then Prime
Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country was
nationalised.

Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980 with
seven more banks. This step brought 80% of the banking segment in India under Government
ownership.

The following are the steps taken by the Government of India to Regulate Banking Institutions
in the Country:

1949 : Enactment of Banking Regulation Act.

1955 : Nationalisation of State Bank of India.
1959 : Nationalisation of SBI subsidiaries.
1961 : Insurance cover extended to deposits.
1969 : Nationalisation of 14 major banks.
1971 : Creation of credit guarantee corporation.
1975 : Creation of regional rural banks.
1980 : Nationalisation of seven banks with deposits over 200 crore.

After the nationalisation of banks, the branches of the public sector bank India rose to
approximately 800% in deposits and advances took a huge jump by 11,000%.

Banking in the sunshine of Government ownership gave the public implicit faith and immense
confidence about the sustainability of these institutions.

Phase III

This phase has introduced many more products and facilities in the banking sector in its
reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set
up by his name which worked for the liberalisation of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to give
a satisfactory service to customers. Phone banking and net banking is introduced. The entire
system became more convenient and swift. Time is given more importance than money.

The financial system of India has shown a great deal of resilience. It is sheltered from any
crisis triggered by any external macroeconomics shock as other East Asian Countries
suffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, the
capital account is not yet fully convertible, and banks and their customers have limited foreign
exchange exposure.

Banking Sector Reforms 1999-2000

In line with the recommendations of the second Narasimham Committee,

the Mid-Term Review of the Monetary and Credit Policy of October 1999
announced a gamut of measures to strengthen the banking system.
Important measures on strengthening the health of banks included: (i)
assigning of risk weight of 2.5 per cent to cover market risk in
respect of investments in securities outside the SLR by March 31,
2001 (over and above the existing 100 per cent risk weight) in
addition to a similar prescription for Government and other approved
securities by March 31, 2000, and (ii) lowering of the exposure
ceiling in respect of an individual borrower from 25 per cent of the
bank's capital fund to 20 per cent, effective April 1, 2000.

Capital Adequacy and Recapitalisation of Banks

Out of the 27 public sector banks (PSBs), 26 PSBs achieved the

minimum capital to risk assets ratio (CRAR) of 9 per cent by March
2000. Of this, 22 PSBs had CRAR exceeding 10 per cent. To enable the
PSBs to operate in a more competitive manner, the Government adopted
a policy of providing autonomous status to these banks, subject to
certain benchmarks. As at end-March 1999, 17 PSBs became eligible for
autonomous status.

Prudential Accounting Norms for Banks

The Reserve Bank persevered with the on-going process of

strengthening prudential accounting norms with the objective of
improving the financial soundness of banks and to bring them at par
with international standards. The Reserve Bank advised PSBs to set up
Settlement Advisory Committees (SACs) for timely and speedier
settlement of NPAs in the small scale sector, viz., small scale
industries, small business including trading and personal segment and
the agricultural sector. The guidelines on SACs were aimed at
reducing the stock of NPAs by encouraging the banks to go in for
compromise settlements in a transparent manner. Since the progress in
the recovery of NPAs has not been encouraging, a review of the scheme
was undertaken and revised guidelines were issued to PSBs in July
2000 to provide a simplified, non-discriminatory and non-
discretionary mechanism for the recovery of the stock of NPAs in all
sectors. The guidelines will remain operative till March 2001.
Recognising that the high level of NPAs in the PSBs can endanger
financial system stability, the Union Budget 2000-01 announced the
setting up of seven more Debt Recovery Tribunals (DRTs) for speedy
recovery of bad loans. An amendment in the Recovery of Debts Due to
Banks and Financial Institutions Act, 1993, was effected to expedite
the recovery process.

Asset Liability Management (ALM) System

The Reserve Bank advised banks in February 1999 to put in place an

ALM system, effective April 1, 1999 and set up internal asset
liability management committees (ALCOs) at the top management level
to oversee its implementation. Banks were expected to cover at least
60 per cent of their liabilities and assets in the interim and 100
per cent of their business by April 1, 2000. The Reserve Bank also
released ALM system guidelines in January 2000 for all-India term-
lending and refinancing institutions, effective April 1, 2000. As per
the guidelines, banks and such institutions were required to prepare
statements on liquidity gaps and interest rate sensitivity at
specified periodic intervals.

Risk Management Guidelines

The Reserve Bank issued detailed guidelines for risk management

systems in banks in October 1999, encompassing credit, market and
operational risks. Banks would put in place loan policies, approved
by their boards of directors, covering the methodologies for
measurement, monitoring and control of credit risk. The guidelines
also require banks to evaluate their portfolios on an on-going basis,
rather than at a time close to the balance sheet date. As regards
off-balance sheet exposures, the current and potential credit
exposures may be measured on a daily basis. Banks were also asked to
fix a definite time-frame for moving over to the Value-at-Risk (VaR)
and duration approaches for the measurement of interest rate risk.
The banks were also advised to evolve detailed policy and operative
framework for operational risk management. These guidelines together
with ALM guidelines would serve as a benchmark for banks which are
yet to establish an integrated risk management system.

Disclosure Norms

As a move towards greater transparency, banks were directed to

disclose the following additional information in the 'Notes to
Accounts' in the balance sheets from the accounting year ended March
31, 2000: (i) maturity pattern of loans and advances, investment
securities, deposits and borrowings, (ii) foreign currency assets and
liabilities, (iii) movements in NPAs and (iv) lending to sensitive
sectors as defined by the Reserve Bank from time to time.

Technological Developments in Banking

In India, banks as well as other financial entities have entered the

domain of information technology and computer networking. A
satellite-based Wide Area Network (WAN) would provide a reliable
communication framework for the financial sector. The Indian
Financial Network (INFINET) was inaugurated in June 1999. It is based
on satellite communication using VSAT technology and would enable
faster connectivity within the financial sector. The INFINET would
serve as the communication backbone of the proposed Integrated
Payment and Settlement System (IPSS). The Reserve Bank constituted a
National Payments Council (Chairman: Shri S. P. Talwar) in 1999-2000
to focus on the policy parameters for developing an IPSS with a real
time gross settlement (RTGS) system as the core.

Revival of Weak Banks

The Reserve Bank had set up a Working Group (Chairman: Shri M. S.

Verma) to suggest measures for the revival of weak PSBs in February
1999. The Working Group, in its report submitted in October 1999,
suggested that an analysis of the performance based on a combination
of seven parameters covering three major areas of i) solvency
(capital adequacy ratio and coverage ratio), ii) earnings capacity
(return on assets and net interest margin) and iii) profitability
(operating profit to average working funds, cost to income and staff
cost to net interest income plus all other income) could serve as the
framework for identifying the weakness of banks. PSBs were,
accordingly, classified into three categories depending on whether
none, all or some of the seven parameters were met. The Group
primarily focussed on restructuring of three banks, viz., Indian
Bank, UCO Bank and United Bank of India, identified as weak as they
did not satisfy any (or most) of the seven parameters. The Group also
suggested a two-stage restructuring process, whereby focus would be
on restoring competitive efficiency in stage one, with the options of
privatisation and/or merger assuming relevance only in stage two.
Deposit Insurance Reforms
Growth of banks sector in India
Banks will have to change dramatically from today's traditional institutions if they
want to survive in the networked world. They are currently introducing internet
banking to try to keep customers, but the move to digital electronic cash, held perhaps
by the customer or an independent third party, will mean that the cash can be quite
separate from the transaction agent. Cash does not need to be stored in a bank if
records in secured databases anywhere can be digitally signed and authenticated. The
customer may hold it on his own computer, or in a cyberspace vault elsewhere. With
digital signatures and high network security, advanced software will put the customer
firmly in control with access to any facility or service anywhere.

In fact, no-one need hold cash at all, or even move it around. Cash is just bits today,
already electronic records. In the future, it will be an increasingly blurred entity,
mixing credit, reputation, information, and simply promises into exchangeable tokens.
My salary may be just a digitally signed certificate from BT yielding control of a
certain amount of credit, just another signature on a long list as the credit migrates
round the economy

The Indian banking system has a large geographic and functional coverage.
Presently the total asset size of the Indian banking sector is US$ 270 billion while
the total deposits amount to US$ 220 billion with a branch network exceeding
66,000 branches across the country. Revenues of the banking sector have grown
at 6 per cent CAGR over the past few years to reach a size of US$ 15 billion.
While commercial banks cater to short and medium term financing requirements,
national level and state level financial institutions meet longer-term requirements.
This distinction is getting blurred with commercial banks extending project
finance. The total disbursements of the financial institutions in 2001 were US$ 14
billion.

Banking today has transformed into a technology intensive and customer friendly
model with a focus on convenience. The sector is set to witness the emergence of
financial supermarkets in the form of universal banks providing a suite of services
from retail to corporate banking and industrial lending to investment banking.
While corporate banking is clearly the largest segment, personal financial services
is the highest growth segment.

The recent favourable government policies for enhancing limits of foreign

investments to 49 per cent among other key initiatives have encouraged such
activity. Larger banks will be able to mobilise sufficient capital to finance asset
expansion and fund investments in technology.

Literature Review
The role of public sector banks and other financial institutions in economic
development has been examined in many studies. There are two broad views about
government involvement in financial systems around the world, i.e., the
development view and the political view. The development view as advocated by
Gerschenkron (1962) states that governments can intervene through their financial
institutions to direct savings of the people towards developmental sectors in countries
where financial institutions are not adequately developed to channel resources into
productive sectors. Gerschenkrons view was part of a broader consensus in
development economics that favored government ownership of enterprises in strategic
economic sectors. Realizing this importance of financial sector in economic
development, governments in developing countries sought to
increase their ownership of banks and other financial institutions in the 1960s and
1970s, in order to direct credit towards priority sectors.

Contrary to this view, in recent years a new political view of government ownership
has evolved which asserts that state control of finance through banks and other
institutions politicizes resource allocation for the sake of getting votes or bribes for
office holders and thereby results in lower economic efficiency. Barth etal. (2001)
using cross country data on commercial bank regulation and ownership from over 60
countries find that state ownership of banks is negatively associated with bank
performance and overall financial sector development and does not reduce the
likelihood of financial crises. Another study [La Porta et al. (2002)], Opinions 406
based on data of government owned banks from 92 countries around the world, finds
that government ownership of banks is high in countries which are characterized by
low levels of per capita income, underdeveloped financial
systems, interventionist and inefficient governments and poor protection of property
rights. The study further finds evidence that government ownership of banks is
associated with slower subsequent financial development, lower economic growth and
especially lower growth of productivity.

Now we come to the question: how privatization can improve the performance of a
state owned enterprise? Generally, the case for privatization of state owned enterprises
can be grouped around three main themes, i.e., competition, political intervention and
corporate governance. The competition argument states that privatization will
improve the operation of the firm and the allocation of resources in the economy, if it
results in greater competition. Privatization can improve efficiency even without
changing market structure if it hinders interventions by politicians and bureaucrats
who would like to use the SOEs to further their political or personal gains. It is also
argued that corporate governance is weaker in state owned enterprises than in private
firms because of agency problems. SOEs have multiple objectives and many
principals who have no clear responsibility of monitoring [Clark et al. (2003)].
Another reason for SOEs to have poorer corporate governance is the weak incentive
structure for managers to perform efficiently. They do not face a market for their skills
or the threat of losing their jobs for non-performance. Thus, less competition, greater
political intervention and weaker corporate governance are strong theoretical
arguments against state ownership [Clark et al. (2003)].

Clarke et al. (2003) using a combination of country case studies and cross country
analyses conclude that privatization of banks improves performance as compared to
continued state ownership. However, continued state ownership even in minority
shares of privatized banks is found to have negative effects on their performance.
Privatization of state owned banks through public share offerings produces lower
gains than direct sales to strategic investors in countries where the institutional
environment is weak. Lastly, they find that the benefits accruing are reduced if foreign
banks are not allowed to participate in the privatization process.

Otchere (2003) presents a comprehensive analysis of the pre and post privatization
performance of privatized banks and their rival banks in low and middle-income
countries. The author does not find any significant evidence of improvements in the
privatized banks post privatization performance. In fact, the privatized banks have a
higher proportion of bad loans and appear to be overstaffed relative to their rivals, in
the post privatization period. The continued government ownership of Opinions 407
privatized banks is found to be responsible for their underperformance, as it hinders
managers ability to restructure them effectively.

Using a comprehensive dataset of bank privatizations in 101 countries during the

period 1982-2000, Boehmer et al. (2003) examine the economic and political factors
that are likely to effect governments decision to privatize a state owned bank, in both
developing and developed countries. Their findings indicate that in developing
countries, a bank privatization is more likely the lower the quality of the countrys
banking sector, the more right wing the countrys government is, and the more
accountable the government is to its people.
RESEARCH METHODOLOGY

INTRODUCTION & MEANING

 Research is a careful investigation or inquiry especially through
search for new facts in branch of knowledge. Here we design the method
for collecting information, managing & implementing the data collection
process, analyzing the results & communicating the findings & their
implications.

Research problem is the one which requires a researcher to find out

the best solution for the given problem that is to find out the course of
action, the action the objectives can be obtained optimally in the context
of a given environment.

Research Methodology is a way to systematically solve the

research problem. It may be understood as a science of studying how
research is done scientifically.

OBJECTIVES: -

There are some objectives of conducting my study, which are as

follows: -
To make a comparative performance appraisal of
top 5 Nationalised & Private Banks in India in year
2007

To know the top nationalized bank among different

Nationalized Banks in India.

To know the top Private Bank among different

Private banks in India.

To know overall, whether Nationalized Bank is

better or Private Bank is better among all different
banks.
To suggest some measures to improve the
performance of both banks.

Plan of study
 Plan of study

Define the information

needed

Review the literature

Design Research

Collect Data (Execution)

Data Analysis

Interpret & Report

TECHNIQUES
The problem definition can be said to be the quite essential part of the
research process; as it determine precisely, what the managerial problem is & the type
of information that the research can generate to help the problem before conducting
the fieldwork. It is better to decide upon the method/technique of data collection.
Generally, there are 2 techniques of data collection are:
1. Census Technique
2. Sampling Technique

A census is a complete enumeration of each & every unit of population

where as in a Sample, only a part of the universe is studied & conclusion about the
entire universe is drawn about that basis. The census method is costlier & more
time consuming as compared to sampling method but the result are near
representatives than sample method. The availability of resources, time factor
degree of accuracy desire & scope of the problem enable us to apply sample
technique.
Sampling technique is used in my research.
SOURCES OF DATA
The research is mainly based on secondary data that has mainly been collected from
published document and website of Reserve Bank of India. Other sources of data are:

Newspapers, magazines, websites, journals.

Most of the data presented in the publication are from annual accounts of
banks
Data on number of offices are from Master Office Files, DESACS, RBI
Data on number of employees are from Indian Banks Association (IBA).
Capital, reserves & surplus, deposits, investments, advances, interest
income, interest expended and operating expenses are as in annual
accounts of banks.

Sample Size
Top 5 nationalised banks: State Bank of India(SBI)
Canara Bank
Punjab National Bank(PNB)
Bank Of Baroda(BOB)
Bank Of India(BOI)

Top 5 Private Banks: ICICI Bank

HDFC Bank
Axis Bank
Jammu & Kashmir Bank
Federal Bank

These criteria of selecting Nationalized Banks as well as

Private Banks is on the basis of Deposits.

ANALYSIS & INTERPRETATION

After the data collection, it was compiled, classified & tabulated manually
& with help of computer. Then the task of drawing inferences was accomplished
with the help of percentage & graphic method. And lastly, various suggestions has
given to improve the performance of both banks i.e. Nationalized Banks and
Private Banks.

LIMITATIONS OF THE STUDY

1. Assumption for the purpose of analysis: Some assumption was made while
doing analysis & interpretation; there could be few limitations in regard to
these.

2. As the sample size considered for the research is very small, it was not
possible to draw accurate conclusions.

3. Sampling errors is another limitation.

4. Lack of availability of data due to paucity of time

PRIVATIZATION OF
BANKING SECTOR IN
INDIA

Banking in India
Banking in India originated in the first decade of 18th century with The
General Bank of India coming into existence in 1786. This was followed by
Bank of Hindustan. Both these banks are now defunct. The oldest bank in
existence in India is the State Bank of India being established as "The
Bank of Bengal" in Calcutta in June 1806. A couple of decades later,
foreign banks like Credit Lyonnais started their Calcutta operations in the
1850s. At that point of time, Calcutta was the most active trading port,
mainly due to the trade of the British Empire, and due to which banking
activity took roots there and prospered. The first fully Indian owned bank
was the Allahabad Bank, which was established in 1865.

By the 1900s, the market expanded with the establishment of banks such
as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in
Mumbai - both of which were founded under private ownership. The
Reserve Bank of India formally took on the responsibility of regulating the
Indian banking sector from 1935. After India's independence in 1947, the
Reserve Bank was nationalized and given broader powers.

[edit] Early history

At the end of late-18th century, there were hardly any banks in India in the
modern sense of the term. At the time of the American Civil War, a void
was created as the supply of cotton to Lancashire stopped from the
Americas. Some banks were opened at that time which functioned as
entities to finance industry, including speculative trades in cotton. With
large exposure to speculative ventures, most of the banks opened in India
during that period could not survive and 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.

The Bank of Bengal, which later became the State Bank of India.

At the beginning of the 20th century, Indian economy was passing through
a relative period of stability. Around five decades have elapsed since the
India's First war of Independence, and the social, industrial and other
infrastructure have developed. At that time there were very small banks
operated by Indians, and most of them were owned and operated by
particular communities. The banking in India was controlled and dominated
by the presidency banks, namely, the Bank of Bombay, the Bank of
Bengal, and the Bank of Madras - which later on merged to form the
Imperial Bank of India, and Imperial Bank of India, upon India's
independence, was renamed the State Bank of India. There were also
some exchange banks, as also a number of Indian joint stock banks. All
these banks operated in different segments of the economy. The
presidency banks were like the central banks and discharged most of the
functions of central banks. They were established under charters from the
British East India Company. The exchange banks, mostly owned by the
Europeans, concentrated on financing of foreign trade. Indian joint stock
banks were generally under capitalized and lacked the experience and
maturity to compete with the presidency banks, and the exchange banks.
There was potential for many new banks as the economy was growing.
Lord Curzon had observed then in the context of Indian banking: "In
respect of banking it seems we are behind the times. We are like some old
fashioned sailing ship, divided by solid wooden bulkheads into separate
and cumbersome compartments."

Under these circumstances, many Indians came forward to set up banks,

and many banks were set up at that time, a number of which have survived
to the present such as Bank of India and Corporation Bank, Indian Bank,
Bank of Baroda, and Canara Bank.

[edit] During the Wars

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 the Indian banking. The years
of the First World War were turbulent, and it took toll of many banks which
simply collapsed despite the Indian economy gaining indirect boost due to
war-related economic activities. At least 94 banks in India failed during the
years 1913 to 1918 as indicated in the following table:

Post-independence
The partition of India in 1947 had adversely impacted the economies of
Punjab and West Bengal, and banking activities had remained paralyzed
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 may be opened without a licence 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 19th July, 1969.

[edit] Nationalisation
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 nationalize 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 Nationalisation." The paper was received with positive
enthusiasm. Thereafter, her move 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 (Acquition and Transfer of Undertaking)
Bill, and it received the presidential approval on 9th August, 1969.

A second dose of nationalization of 6 more commercial banks followed in

1980. The stated reason for the nationalisation was to give the government
more control of credit delivery. With the second dose of nationalisation, the
GOI controlled around 91% of the banking business of India.

After this, until the 1990s, the nationalized banks grew at a pace of around
4%, closer to the average growth rate of the Indian economy.

[edit] Liberalisation
In the early 1990s the then Narsimha Rao government embarked on a
policy of liberalisation and gave licences to a small number of private
banks, which came to be known as New Generation tech-savvy banks,
which included banks such as Global Trust Bank (the first of such new
generation banks to be set up)which later amalgamated with Oriental Bank
of Commerce,UTI Bank(now re-named as Axis Bank), ICICI Bank and
HDFC Bank. This move, along with the rapid growth in the economy of
India, kickstarted 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.

The next stage for the Indian banking has been setup with the proposed
relaxation in the norms for Foreign Direct Investment, where all Foreign
Investors in banks may be given voting rights which could exceed the
present cap of 10%,at present it has gone up to 49% with some
restrictions.
The new policy shook the Banking sector in India completely. Bankers, till
this time, were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go
home at 4) of functioning. The new wave ushered in a modern outlook and
tech-savvy methods of working for traditional banks.All this led to the retail
boom in India. People not just demanded more from their banks but also
received more.

Privatization

Privatization is transfer of ownership or control over assets or activities from the public to the
private sector. In broad terms, privatization involves greater market force, ensures higher
competition, reduces the role of the state in the economic sphere and thus brings in greater private
involvement into government activities. It liberalizes different regulations to unleash forces of
competition and to induce market forces into the economy. It is also referred to as structural
adjustment programmes for the economy as a whole and as an element of broader economic
policy. However, in its strict sense, privatization refers to divestiture to private entity1. Privatization,
one of the policy reforms, is meant to improve the efficiency of state owned enterprises2.

The Committee on the Reforms of the Financial System (1991), under the chairmanship of Mr. M.
Narasimham had recommended for reforms in the financial sector. Banking and insurance are the
two key factors of the financial sector3. The Government has welcomed the establishment of
private banks and is encouraging privatization of public sector banks and extension of private
banks.

Banking Industry in India has always revolved around the traditional function of deposits and
credit. Their role has been defined to assist the overall economic growth with majority of shares
being controlled by the Government of India in most of the banks. But with the process of
Liberalization, the banking industry has also undergone tremendous change in the last 5 years.
The rules of the game have been changing with RBI introducing new norms to make banks more
accountable and to adopt the practices followed worldwide.

[edit] Current situation

Currently (2007), banking in India is generally fairly mature in terms of
supply, product range and reach-even though reach in rural India still
remains a challenge for the private sector and foreign banks. In terms of
quality of assets and capital adequacy, Indian banks are considered to
have clean, strong and transparent balance sheets relative to other banks
in comparable economies in its region. The Reserve Bank of India is an
autonomous body, with minimal pressure from the government. The stated
policy of the Bank on the Indian Rupee is to manage volatility but without
any fixed exchange rate-and this has mostly been true.

With the growth in the Indian economy expected to be strong for quite
some time-especially in its services sector-the demand for banking
services, especially retail banking, mortgages and investment services are
expected to be strong. One may also expect M&As, takeovers, and asset
sales.
In March 2006, the Reserve Bank of India allowed Warburg Pincus to
increase its stake in Kotak Mahindra Bank (a private sector bank) to 10%.
This is the first time an investor has been allowed to hold more than 5% in
a private sector bank since the RBI announced norms in 2005 that any
stake exceeding 5% in the private sector banks would need to be vetted by
them.

Currently, India has 88 scheduled commercial banks (SCBs) - 28 public

sector banks (that is with the Government of India holding a stake), 29
private banks (these do not have government stake; they may be publicly
listed and traded on stock exchanges) and 31 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 75 percent of total assets of the banking industry, with the private and
foreign banks holding 18.2% and 6.5% respectively.

List of Nationalized Banks In India

These are:
 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
Oriental Bank of Commerce
Punjab National Bank
State Bank of Bikaner and Jaipur
State Bank of Hyderabad
State Bank of India
State Bank of Indore
State Bank of Mysore
State Bank of Patiala
State Bank of Saurashtra
State Bank of Travancore
Syndicate Bank
UCO Bank
Union Bank of India
United Bank of India
Vijaya Bank

In my research project, I consider these top 5 Nationalized Banks on the

basis of Deposits:
State Bank of India
Canara Bank
Punjab National Bank
Bank Of Baroda
Bank of India

INFORMATION OF TOP 5
NATIONALIZED BANKS
STATE BANK OF INDIA

State Bank of India (SBI) (LSE:SBID) is a Public Sector Banking Organisation

(PSB), in which the Government of India is the biggest shareholder, and is the largest
bank in India. If one measures by the number of branch offices, SBI is the second
largest bank in the world. It traces its ancestry back to the Bank of Calcutta, which
was established in 1806; this makes SBI the oldest commercial bank in the Indian
subcontinent. SBI provides various domestic, international and NRI products and
services, through its vast network in India and overseas. With an asset base of $126
billion and its reach, it is a regional banking behemoth.

The State Bank of India, the countrys oldest Bank and a premier in terms of
balance sheet size, number of branches, market capitalization and profits is today
going through a momentous phase of Change and Transformation the two
hundred year old Public sector behemoth is today stirring out of its Public Sector
legacy and moving with an agility to give the Private and Foreign Banks a run for
their money.

The bank is entering into many new businesses with strategic tie ups Pension
Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking,
Point of Sale Merchant Acquisition, Advisory Services, structured products etc
each one of these initiatives having a huge potential for growth.

The Bank is forging ahead with cutting edge technology and innovative new
banking models, to expand its Rural Banking base, looking at the vast untapped
potential in the hinterland and proposes to cover 100,000 villages in the next two
years.

It is also focusing at the top end of the market, on whole sale banking capabilities
to provide Indias growing mid / large Corporate with a complete array of
products and services. It is consolidating its global treasury operations and
entering into structured products and derivative instruments. Today, the Bank is
the largest provider of infrastructure debt and the largest arranger of external
commercial borrowings in the country. It is the only Indian bank to feature in the
Fortune 500 list.

The Bank is changing outdated front and back end processes to modern customer
friendly processes to help improve the total customer experience. With about
8500 of its own 10000 branches and another 5100 branches of its Associate
Banks already networked, today it offers the largest banking network to the
Indian customer. The Bank is also in the process of providing complete payment
solution to its clientele with its over 8500 ATMs, and other electronic channels
such as Internet banking, debit cards, mobile banking, etc.

With four national level Apex Training Colleges and 54 learning Centres spread all
over the country the Bank is continuously engaged in skill enhancement of its
employees. Some of the training programes are attended by bankers from banks
in other countries.

The bank is also looking at opportunities to grow in size in India as well as

Internationally. It presently has 82 foreign offices in 32 countries across the
globe. It has also 7 Subsidiaries in India SBI Capital Markets, SBICAP
Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards - forming a formidable
group in the Indian Banking scenario. It is in the process of raising capital for its
growth and also consolidating its various holdings.

The CNN IBN, Network 18 recognized this momentous transformation journey,

the State Bank of India is undertaking, and has awarded the prestigious Indian of
the Year Business, to its Chairman, Mr. O. P. Bhatt in January 2008.

1.CANARA BANK
Vision
To emerge as a Best Practices Bank by pursuing global benchmarks in profitability,
operational efficiency, asset quality, risk management and expanding the global reach.

Mission

To provide quality banking services with enhanced customer orientation, higher value
creation for stakeholders and to continue as a responsive corporate social citizen by
effectively blending commercial pursuits with social banking.

A Brief Profile of the Bank

Canara Bank (BSE: 532483), established in 1906 with the name of Canara Bank
Hindu Permanent Fund in Mangalore, India, by Ammembal Subba Rao Pai, is one of
the oldest and major commercial banks of India. Its name was changed to Canara
Bank Limited in 1910. The bank, along with 13 other major commercial banks of
India, was nationalised on 19th July, 1969, by the Government of India. In 1985,
Canara Bank acquired Lakshmi Commercial Bank in a rescue.

Canara Bank has made a distinctive mark in various corporate social responsibilities,
namely, serving national priorities, promoting rural development, enhancing rural
self-employment through several training institutes, spearheading financial inclusion
objective etc. Promoting an inclusive growth strategy, which forms the basic plank of
national policy agenda today, is in fact deeply rooted in the Bank's founding
principles. "A good bank is not only the financial heart of the community, but also one
with an obligation of helping in every possible manner to improve the economic
conditions of the common people". These insightful words of our founder continue to
resonate even today in serving the society with a purpose.

Branches
As of 2007, the bank has a network of 2542 branches, spread over 25 States/4 Union
Territories of India. Its head office is located in Bangalore, India. The bank also has
international presence in several centers, including London, Hong Kong, Moscow,
Shanghai, Doha, and Dubai. In terms of business it is one of the largest nationalized
commercial banks in India, with a total business of about Rs.2 trillion.

Development projects
Canara bank made a partnership with UNEP to initiate a successful solar loan
programme. It was a four-year $7.6 million effort, launched in April 2003 to help
accelerate the market for financing solar home systems in southern India

2.PUNJAB NATIONAL BANK

History:
Established in 1895 at Lahore, undivided India, Punjab National Bank (PNB) has the
distinction of being the first Indian bank to have been started solely with Indian capital.The
bank was nationalised in July 1969 along with 13 other banks. From its modest beginning, the
bank has grown in size and stature to become a front-line banking institution in India at
present.

VISION:

To evolve & position the bank as a world class progressive, cost effective & customer friendly
institution providing comprehensive financial & related services. Integrating frontiers of
technology & serving various segments of society especially the weaker sections, committed
to excellence in serving the public & also excelling in corporate values.

MISSION:

To provide excellent professional services & improve its position as a leader in the field of
financial & related services, build & maintain a team of motivated & commited workforce with
high work ethos, use latest technology aimed at customer satisfaction act as an effective
catalyst for socio-economic development.

PROFILE

With its presence virtually in all the important centres of the country, Punjab
National Bank offers a wide variety of banking services which include corporate
and personal banking, industrial finance, agricultural finance, financing of trade
and international banking. Among the clients of the Bank are Indian
conglomerates, medium and small industrial units, exporters, non-resident
Indians and multinational companies. The large presence and vast resource base
have helped the Bank to build strong links with trade and industry.

Punjab National Bank is serving over 3.5 crore customers through 4540 Offices
including 421 extension counters - largest amongst Nationalized Banks.

Punjab National Bank with 112 year tradition of sound and prudent banking is one
among 300 global companies and seven Indian companies which are expected to
emerge as challengers to Worlds leading blue chip companies. While among top
1000 world banks, The Banker, the leading magazine in London, has placed PNB
at the 248th position, the bank features at 1308th position among Forbes Global
2000 list of global giants and fast growing companies.

Strong correspondent banking relationship which Punjab National Bank maintains

with over 200 leading international banks all over the world enhances its
capabilities to handle transactions world-wide. Besides, bank has Rupee Drawing
Arrangements with 15 exchange companies in the Gulf and one in Singapore.
Bank is a member of the SWIFT and over 150 branches of the bank are connected
through its computer-based terminal at Mumbai. With its state-of-art dealing
rooms and well-trained dealers, the bank offers efficient forex dealing operations
in India.

Keeping in tune with changing times and to provide its customers more efficient
and speedy service, the Bank has taken major initiative in the field of
computerization. All the Branches of the Bank have been computerized. The Bank
has also launched aggressively the concept of "Any Time, Any Where Banking"
through the introduction of Centralized Banking Solution (CBS) and over 2409
offices have already been brought under its ambit.

PNB also offers Internet Banking services in the country for Corporates as well as
individuals. Internet Banking services are available through all Branches of the
Bank networked under CBS. Providing 24 hours, 365 days banking right from the
PC of the user, Internet Banking offers world class banking facilities like anytime,
anywhere access to account, complete details of transactions, and statement of
account, online information of deposits, loans overdraft account etc. PNB has
recently introduced Online Payment Facility for railway reservation through IRCTC
Payment Gateway Project and Online Utility Bill Payment Services which allows
Internet Banking account holders to pay their telephone, mobile, electricity,
insurance and other bills anytime from anywhere from their desktop.

Another step taken by PNB in meeting the changing aspirations of its clientele is
the launch of its Debit card, which is also an ATM card. It enables the card holder
to buy goods and services at over 99270 merchant establishments across the
country. Besides, the card can be used to withdraw cash at more than 25000
ATMs, where the 'Maestro' logo is displayed, apart from the PNB's over 1094 ATMs
and tie up arrangements with other Banks.

4. bank of baroda
vision
It has been a long and eventful journey of almost a century across 25 countries. Starting in 1908 from a small
building in Baroda to its new hi-rise and hi-tech Baroda Corporate Centre in Mumbai, is a saga of vision,
enterprise, financial prudence and corporate governance.

It is a story scripted in corporate wisdom and social pride. It is a story crafted in private capital, princely
patronage and state ownership. It is a story of ordinary bankers and their extraordinary contribution in the
ascent of Bank of Baroda to the formidable heights of corporate glory. It is a story that needs to be shared with
all those millions of people - customers, stakeholders, employees & the public at large - who in ample
measure, have contributed to the making of an institution.

mission
To be a top ranking National Bank of International Standards committed to augmenting stake holders' value
through concern, care and competence.

history
It all started with a visionary Maharaja's uncanny foresight into the future of trade and enterprising in his
country. On 20th July 1908, under the Companies Act of 1897, and with a paid up capital of Rs 10 Lacs started
the legend that has now translated into a strong, trustworthy financial body, THE BANK OF BARODA.

It has been a wisely orchestrated growth, involving corporate wisdom, social pride and the vision of helping
others grow, and growing itself in turn.
Marketing Initiatives

The mid-eighties marked the beginning of the shift to a buyers` market. The Bank orchestrated its business
strategies around the centrality of the customer. It diversified into areas of merchant banking, housing finance,
credit cards and mutual funds. A string of segment specific branches entrenched operations in the profitable
markets. Overseas operations were revamped and structural changes intensified in the territories to cater to
second generation NRIs. Slowly but surely, the move to become a one stop financial supermarket had been
set in motion. Service delivery standards were stipulated.

Technology was adopted to add punch. Employees across the board were inculcated with the marketing
concept. Aggressive marketing became the new business philosophy.

People Initiatives

Bank of Baroda has always had an immense faith in the infinite potential of its people. This has been
historically demonstrated in its recruitment practices, developmental initiatives, placement processes and
promotion policies. Strategic HR interventions like, according cross border and cross cultural work exposure to
its managers, hiring diverse functional specialists to support line functionaries and complementing the
technical competencies of its people by imparting conceptual, managerial and leadership skills, gave the Bank
competitive advantage. The elaborate man management policies also made the Bank a breeding ground for
business leaders. The Bank provided around a dozen CEOs to the industry- men who went on to build other
great institutions. People initiatives were blended with IR initiatives to create an effectively harmonious
workplace, where everyone prospered.

Financial Initiatives

New norms for capital adequacy required new capital management strategies. In 1995 the Bank raised Rs 300
crores through a Bond issue. In 1996 the Bank tapped the capital market with an IPO of Rs 850 crores,
Despite adverse market conditions prevailing then, the issue was over subscribed, reflecting the positive
public perception of the Bank's fundamental financial strength.

Digital Initiatives

Bank of Baroda pioneered the shift from manual operating systems to a computerized work environment.
Starting with ledgers, to ledger posting machines, through ALPMs, the Bank graduated to the use of Unix
based systems to Mainframes, to client server based Total Branch Mechanization Systems. Today, the Bank
has 1918 computerized branches, covering 70% of its network and 91.64% of its business. Alive to the
growing complexities of an intensely competitive marketplace and the mounting expectations of customers
fuelled by this competition, the Bank reworked its distribution strategy. It ventured beyond the brick and mortar
delivery channel into ATMs and the OmniBOB range of anytime, anywhere electronic channels of PC banking,
telephone banking. The e-banking products used state of the art technologies like digital certificates, smart
card authentication and secure networking.

The new IT strategy, in the process of implementation will see the deployment of Core Banking Systems, Multi
Service Transaction Switch, Payment Gateways - all geared to deliver convenience banking.

Quality Initiatives

In its relentless striving for quality perfection, the Bank secured the ISO 9001:2000 certification for 15
branches. By end of the current financial, the Bank is targeting 54 more branches for this quality certification.

The Future

Revolutionary and discontinuous changes in the operating environment are a stark reminder that business
success is 'impermanent'. The emergence of IT as a major driver for change, has accentuated the need to
initiate a major transformation program. The conversion to an IT savvy, market driven bank will be a
prerequisite to survival and growth. A major and strategic step in hi-tech, was the establishment of the
Integrated Treasury branch, as a forerunner to full-fledged global treasury operations. Towards creating a
future Bank of Baroda, the Bank has adopted a revolutionary new business strategy that will be enabled by a
revolutionary new IT strategy. Actioning this strategy will position Bank of Baroda as India's uncontested
premier bank.

At Bank of Baroda, change is a journey. It has a beginning. There will be no end. It will be a long and difficult
march. And the Bank will emerge stronger, more resilient and positioned to become India's first bank of truly
global standards. The relocation to the imposing Baroda Corporate Centre, is a true reflection of the Bank's
resolve to move ahead of the times. It will not be out of place now, as it stands on the threshold of a digital era,
to echo the same sentiments that guided the Bank in its platinum jubilee year - 'a promising future is the
sequel to a glorious past'.

5. BANK OF INDIA
Vision
"to become the bank of choice for corporates, medium businesses and upmarket retail
customers and to provide cost effective developmental banking for small business, mass
market and rural markets"

Mission
"to provide superior, proactive banking services to niche markets globally, while providing
cost-effective, responsive services to others in our role as a development bank, and in so
doing, meet the requirements of our stakeholders".

HISTORY
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
nationalised along with 13 other banks.

Beginning with one office in Mumbai, with a paid-up capital of Rs.50 lakh 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 nationalised banks.

The Bank has 2644 branches in India spread over all states/ union territories including 93
specialised branches. These branches are controlled through 48 Zonal Offices . There are 24
branches/ offices (including three representative offices) abroad.

The Bank came out with its maiden public issue in 1997. Total number of shareholders as on
30/09/2006 is 2,25,704.

While firmly adhering to a policy of prudence and caution, the Bank has been in the forefront
of introducing various innovative services and systems. Business has been conducted with
the successful blend of traditional values and ethics and the most modern infrastructure. The
Bank has been the first among the nationalised banks to establish a fully computerised
branch and ATM facility at the Mahalaxmi Branch at Mumbai way back in 1989. The Bank is
also a Founder Member of SWIFT in India. It pioneered the introduction of the Health Code
System in 1982, for evaluating/ rating its credit portfolio.

The Bank's association with the capital market goes back to 1921 when it entered into an
agreement with the Bombay Stock Exchange (BSE) to manage the BSE Clearing House. It is
an association that has blossomed into a joint venture with BSE, called the BOI Shareholding
Ltd. to extend depository services to the stock broking community. Bank of India was the first
Indian Bank to open a branch outside the country, at London, in 1946, and also the first to
open a branch in Europe, Paris in 1974. The Bank has sizable presence abroad, with a
network of 23 branches (including three representative office ) at key banking and financial
centres viz. London, Newyork,Paris,Tokyo,Hong-Kong,and Singapore. The international
business accounts for around 20.10% of Bank's total business.
INFORMATION OF TOP 5 PRIVATE
BANKS
 LIST OF PRIVATE BANKS IN INDIA
These are:
AXIS Bank
Bharat Overseas Bank
Bank of Punjab
Centurion Bank
City Union Bank
Development Credit Bank
Federal Bank
ICICI Bank
IDBI Bank
IndusInd Bank
ING Vysya Bank
Kotak Mahindra Bank
SBI Commercial and Intl. Bank
Tamilnad Mercantile Bank
The Bank of Rajasthan
The Dhanalakshmi Bank
The Federal Bank
The HDFC Bank
The Jammu & Kashmir Bank
The Karnataka Bank
The Karur Vysya Bank
The Lakshmi Vilas Bank
The South Indian Bank
The United Western Bank
YES Bank

In my research project, I consider these top 5 Private Banks on

the basis of Deposits:
ICICI Bank
The HDFC Bank
AXIS Bank
The Jammu & Kashmir Bank
Federal Bank

1. ICICI BANK

ICICI Bank (BSE: ICICI) (formerly Industrial Credit and Investment

Corporation of India) is India's largest private sector bank in market capitalization
and second largest overall in terms of assets. ICICI Bank has total assets of about
USD 79 Billion (end-Mar 2007), a network of over 950 branches and offices, about
3600 ATMs, and 24 million customers (as of end July 2007). ICICI Bank offers a
wide range of banking products and financial services to corporate and retail
customers through a variety of delivery channels and through its specialised
subsidiaries and affiliates in the areas of investment banking, life and non-life
insurance, venture capital and asset management. ICICI Bank's equity shares are
listed in India on stock exchanges at Kolkata and Vadodara, the Stock Exchange,
Mumbai and the National Stock Exchange of India Limited and its ADRs are listed on
the New York Stock Exchange (NYSE).
PROFILE
The Government of India established ICICI in 1955
as a Financial Institution (FI, other such
institutions were IDBI and SIDBI) with the
objective to finance large industrial projects.
ICICI was not a bank - it could not take retail
deposits - and nor was it required to comply with
Indian banking requirements for liquid reserves.
ICICI borrowed funds from many multilateral
agencies (such as the World Bank), often at
concessional rates. It used these to make large
corporate loans.
All this changed in 1990s. ICICI founded a separate legal entity, ICICI Bank, to
undertake normal banking operations - taking deposits, credit cards, car loans etc. The
experiment was so successful that ICICI merged into ICICI Bank in a "reverse
merger" in 2002.

At the time of the reverse merger, there were rumours that ICICI had a large
proportions of Non Performing Loans ("NPA", as they are known in India) on its
books - in particular to the steel industry. Since 2002, there has been a general revival
in Indian industry (and metal based industry in particular). It is widely believed that
the proportion of NPAs has come down to prudent levels (even if it were high earlier).

ICICI Bank now is the largest among all banks in retail or consumer financing. ICICI
Bank is the largest issuer of credit cards in India. It was the first bank to offer a wide
network of ATM's and has a large network of ATM's.

ICICI Bank also has the largest market value of all banks in India, and is widely seen
as a sophisticated bank able to take on many global banks in the Indian market.

The Bank is expanding in overseas markets and has the largest international balance
sheet among Indian banks. The international banking business was set up in 2002 to
implement a focussed strategy for the overseas market. The Bank now has wholly-
owned subsidiaries, branches and representatives offices in 18 countries, including an
offshore unit in Mumbai. This includes wholly owned subsidiaries in UK, Canada and
Russia, offshore banking units in Singapore and Bahrain; advisory branch in Dubai,
branches in Sri Lanka, Hong Kong and Belgium; and rep offices in the US, China,
United Arab Emirates, Bangladesh, South Africa, Indonesia, Thailand and Malaysia.
The bank is targeting the NRI (Non Resident Indian) population for expanding its
business.

ICICI Bank has been endorsed by Amitabh Bachchan and Shahrukh Khan. The
Cheques presented to winners in the first 2 versions of the famous game show - Kaun
Banega crorepati were ICICI Bank cheques.

ICICI Bank reported marked-to-market loss of $264 million as of January 31, 2008
following USA subprime mortgage crisis.

2. HDFC BANK
ABOUT US:

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in
principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of
the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August
1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January 1995.

PROMOTER

HDFC is India's premier housing finance company and enjoys an impeccable track record in India as
well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent
and healthy growth in its operations to remain the market leader in mortgages. Its outstanding loan
portfolio covers well over a million dwelling units. HDFC has developed significant expertise in retail
mortgage loans to different market segments and also has a large corporate client base for its housing
related credit facilities. With its experience in the financial markets, a strong market reputation, large
shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in
the Indian environment.

BUSINESS FOCUS:

HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer
franchises across distinct businesses so as to be the preferred provider of banking services for target
retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with
the bank's risk appetite. The bank is committed to maintain the highest level of ethical standards,
professional integrity, corporate governance and regulatory compliance. HDFC Bank's business
philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership
and People.

CAPITAL STRUCTURE:

The authorised capital of HDFC Bank is Rs.450 crore (Rs.4.5 billion). The paid-up capital is Rs.311.9
crore (Rs.3.1 billion). The HDFC Group holds 22.1% of the bank's equity and about 19.4% of the equity
is held by the ADS Depository (in respect of the bank's American Depository Shares (ADS) Issue).
Roughly 31.3% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about
190,000 shareholders. The shares are listed on the The Stock Exchange, Mumbai and the National
Stock Exchange. The bank's American Depository Shares are listed on the New York Stock Exchange
(NYSE) under the symbol "HDB".

DISTRIBUTION NETWORK:
 HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 744
branches spread over 339 cities across India. All branches are linked on an online real-time basis.
Customers in over 120 locations are also serviced through Telephone Banking. The Bank's expansion
plans take into account the need to have a presence in all major industrial and commercial centres
where its corporate customers are located as well as the need to build a strong retail customer base for
both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges,
the Bank has branches in the centres where the NSE/BSE have a strong and active member base.

The Bank also has a network of about over 1658 networked ATMs across these cities. Moreover,
HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard, Visa
Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

3.AXIS BANK
Mission
Customer Service and Product Innovation tuned to diverse needs of individual and
corporate clientele.
Continuous technology upgradation while maintaining human values.
Progressive globalization and achieving international standards.
Efficiency and effectiveness built on ethical practices.

Core Values
Customer Satisfaction through

o Providing quality service effectively and efficiently

o "Smile, it enhances your face value" is a service quality stressed on

o Periodic Customer Service Audits

Maximisation of Stakeholder value
Success through Teamwork, Integrity and People

PROFILE
Axis Bank was the first of the new private banks to have begun operations in 1994, after the
Government of India allowed new private banks to be established. The Bank was promoted
jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life
Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and
other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India
Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance
Company Ltd.

The Bank today is capitalized to the extent of Rs. 357.71 crore with the public holding (other
than promoters) at 57.49%.

The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai.
Presently, the Bank has a very wide network of more than 671 branch offices and Extension
Counters. The Bank has a network of over 2764 ATMs providing 24 hrs a day banking
convenience to its customers. This is one of the largest ATM networks in the country.

The Bank has strengths in both retail and corporate banking and is committed to adopting the
best industry practices internationally in order to achieve excellence.
4. JAMMU AND KASHMIR BANK

HISTORY

Jammu and Kashmir Bank Limited was incorporated on 1st October, 1938 and commenced its
business from 4th July, 1939 at in Kashimir (India). The Bank was the first in the country as a
State owned bank.

According to the extended Central laws of the state, Jammu & Kashmir Bank was defined as a
govt. Company as per the provision of Indian companies act 1956. In the year 1971, the Bank
received the status of scheduled bank. It was declared as "A" Class Bank by RBI in 19760.
Today the bank has more than 500 branches across the country and has recently become a
billion Dollar Company.

The Jammu & Kashmir Bank is today one of the fastest growing banks in India with a
network of more than 500 branches/offices spread across the country offering world
class banking products/services to its customers. Today, the Bank has a status of value
driven organization and is always working towards building trust with shareholders,
customers, borrowers, regulators, employees and other diverse stakeholders, for
which it has adopted a strategy directed to developing a sound foundation of
relationship and trust aimed at achieving excellence, which of course, comes from the
womb of good corporate governance. Good governance is a source of competitive
advantage and a critical input for achieving excellence in all pursuits. J&K Bank
considers good corporate governance as the sine qua non of a good banking system
and has adopted a policy based on all the four pillars of good governance
transparency, disclosures, accountability and value.

PROFILE

Incroporated in 1938 as a limited company.

Governed by the Companies Act and Banking Regulation Act of India.
Regulated by the Reserve Bank of India and SEBI.
Listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE)
53 per cent owned by the Government of J&K.
Rated "P1+" by Standard and Poor- CRISIL connoting highest degree of safety.
Four decades of uninterrupted profitibility and devidends.

UNIQUE CHARACTERISTICS

Private sector Bank despite government holding 53 per cent of equity.

Sole banker and lender of last resort to the Government of J & K.
Plan and non -plan funds, taxes and non-tax revenues routed through the bank.
Salaries of Government offcials disbursed by the Bank.
Only private sector bank designated as agent of RBI for banking.
 5.FEDERAL BANK
PROFILE

Federal Bank is an Indian bank in the private sector, headquartered at Aluva, Kerala.
The bank was established by Kulangara Paulo Hormis.As of 2006 it had 525 branches
and 368 ATMs around the country.

To keep an organisation live and vibrant, growth is an essential phenomenon. And for
growth to happen, organisations have to plant its root firmly on the ground of strong
business philosophies. It is the propose that drive organisations forward, and a
strong philosophy is what fuels this advance.

Federal Bank is the leading player in the category - traditional banks, the term
tradition denoting that a set of values are followed for quite a few years. The bank
envisions all-round prosperity to all its stakeholders; customers, employees,
shareholders and associates. Excellence is practised and propagated, in all spheres of
activities. Strategic alliances and diversification measures are adopted, making sure
that the ultimate aim is achieved, to be a bank of true world class standards.

To become a bank respected by customers and competitors alike, there is an asset you
can never dare to overlook the employees. Well-trained, well-informed and happy
work force with strong work ethics is sure to result in success with no precedents. An
HRD policy aimed at developing a WE attitude among the employees is reaping its
results, the people the Bank evolving into an energetic lot who can make all the
difference.

AnyTime-AnyWhere-AnyWay Banking

The Bank has the full range of delivery channels including, Internet Banking, Mobile Banking
and Alerts, Any Where (Branch) Banking, Interconnected Visa enabled ATM network, E-mail
Alerts, Telephone Banking and a Centralised customer Call Centre with toll free number.
Customers thus have the ability to avail 24 hour banking service from the channel of his
choice, according to his convenience. Federal Bank already has the largest number of ATMs
in Kerala, taking round-the-clock banking convenience to even many rural areas. The Bank's
ATM card also doubles as a International Visa Debit Card enabling the Bank's customers to
use the card at any of the over 8,40,000 networked ATMs round the world and pay for
shopping at over 12 million retail establishments across the state. The Bank has launched its
anywhere banking service, enabling customers to bank at any branch of his / her choice
regardless of the place where the account is maintained.

Financial Super Market

The Bank has now emerged into a financial supermarket giving the customers a range of
products and services. Apart from the entire slew of Banking products and delivery channels
we also provide the following facilities:
 Depository Services
Credit Cards
Life Insurance Products in association with ICICI Prudential
General Insurance Products in association with United India Insurance
Export Credit Insurance Products in association with ECGC
Express Remittance Facility from Abroad - FEDFAST
Cash -On- Line Express Cash Remittance
Lock Box Service for NRI's in the US
Cash Management Services
Merchant Banking Services
E-shopping Payment gateway
BSNL Bill Payment
Online LIC Insurance Payment
Easy Pay- On-line fee payment system
Online Railway Reservation System
Online Kiosks for customers

Unique Technology driven services

The Bank's Mobile Banking Services enables customers to access their account details over
the mobile phone. The Bank also has the Mobile Alert facility, which enables customers in any
part of the world to receive instant alerts on transactions in their account in India on their
mobile. A noteworthy feature of the facility is that it is highly flexible and can be personalised
according to the needs of the customer at any time. Even while leveraging on technology to
improve convenience, we have always strived to ensure that our product and services are
simple, easy to use and most affordable.
DEPOSITS
Banks AMOUNT
STATE BANK OF INDIA (SBI) 435521
CANARA BANK 142381
PUNJAB NATIONAL BANK (PNB) 139860
BANK OF BARODA (BOB) 124916
BANK OF INDIA (BOI) 119882
ICICI BANK 230510
HDFC BANK 68298
AXIS BANK 58786
JAMMU & KASHMIR BANK 25194
FEDERAL BANK 21584

INTERPRETATION: - The above bar graph diagram depicts that State Bank of India
has highest deposits i.e., Rs. 4,35,521 among Nationalized Banks & ICICI Bank has
highest deposits i.e., 2,30,510 among Private Banks. And from all different banks,
SBI has highest deposits.

NUMBER OF OFFICES

DIFFERENT BANKS No. of Offices

STATE BANK OF INDIA (SBI) 9556
CANARA BANK 2689
PUNJAB NATIONAL BANK (PNB) 4156
BANK OF BARODA (BOB) 2801
BANK OF INDIA (BOI) 2717
ICICI BANK 713
HDFC BANK 638
AXIS BANK 501
JAMMU & KASHMIR BANK 460
FEDERAL BANK 548

INTERPRETATION: - The above bar diagram shows that SBI has wide branch
network i.e., 9556 offices among Nationalized Banks as well as among all different
banks. And among Private Banks, ICICI has wide branch network i.e., 713 offices.

NUMBER OF EMPLOYEES

DIFFERENT BANKS No. of Employees

STATE BANK OF INDIA (SBI) 185388
CANARA BANK 46359
PUNJAB NATIONAL BANK (PNB) 57316
BANK OF BARODA (BOB) 38086
BANK OF INDIA (BOI) 41511
ICICI BANK 33321
HDFC BANK 21477
AXIS BANK 9980
JAMMU & KASHMIR BANK 6829
FEDERAL BANK 6029

INTERPRETATION: - From the above data, it clearly shows that SBI has large
number of employees i.e. 1,85,388 employees among Nationalized banks as well as
among all different banks. And from Private Banks, ICICI Bank has large number of
employees i.e. 33,321 employees.

BUSINESS PER EMPLOYEE (IN RS. LAKHS)

DIFFERENT BANKS AMOUNT

STATE BANK OF INDIA (SBI) 357
CANARA BANK 548.76
PUNJAB NATIONAL BANK (PNB) 407.41
BANK OF BARODA (BOB) 555
BANK OF INDIA (BOI) 498
ICICI BANK 1027
HDFC BANK 607
AXIS BANK 1024
JAMMU & KASHMIR BANK 585
FEDERAL BANK 544

INTERPRETATION: - The above bar diagram depicts that Bank of Baroda has
highest Business Per Employees i.e. Rs. 555 lakhs among Nationalized Banks and
among Private Banks, ICICI Bank has first highest Business Per Employees & Axis
Bank has second highest Business Per Employees. Overall, among all different banks,
ICICI Bank has highest Business Per Employees i.e. Rs. 1,027 lakhs.

PROFIT PER EMPLOYEE (IN RS. LAKHS)

DIFFERENT BANKS AMOUNT

STATE BANK OF INDIA (SBI) 2.37
CANARA BANK 3.24
PUNJAB NATIONAL BANK (PNB) 2.68
BANK OF BARODA (BOB) 2.73
BANK OF INDIA (BOI) 2.71
ICICI BANK 9
HDFC BANK 6.13
AXIS BANK 7.59
JAMMU & KASHMIR BANK 4
FEDERAL BANK 4.43

INTERPRETATION: - The above data shows that Canara Bank has highest Profit Per
Employee i.e. Rs. 3.24 lakhs among Nationalized Banks and among Private Banks,
ICICI Bank has highest Profit Per Employees i.e. Rs. 9 lakhs. And Overall, among all
different banks, ICICI Bank has highest Business Per Employees.

CAPITAL AND RESERVES & SURPLUS

DIFFERENT BANKS AMOUNT

STATE BANK OF INDIA (SBI) 31299
CANARA BANK 10354
PUNJAB NATIONAL BANK (PNB) 10435
BANK OF BARODA (BOB) 8650
BANK OF INDIA (BOI) 5895
ICICI BANK 24663
HDFC BANK 6433
AXIS BANK 3402
JAMMU & KASHMIR BANK 2009
FEDERAL BANK 1502

INTERPRETATION: - The above bar diagram shows that SBI has largest Capital and
Reserves & Surplus i.e. Rs. 31,299 among Nationalized Banks as well as among all
different banks. On the other hand, ICICI Bank has largest Capital and Reserves &
Surplus i.e. Rs. 24,663 among Private Banks.

INVESTMENTS

DIFFERENT BANKS AMOUNT

STATE BANK OF INDIA (SBI) 149149
CANARA BANK 45226
PUNJAB NATIONAL BANK (PNB) 45190
BANK OF BARODA (BOB) 34994
BANK OF INDIA (BOI) 35493
ICICI BANK 91258
HDFC BANK 30565
AXIS BANK 26897
JAMMU & KASHMIR BANK 7392
FEDERAL BANK 7033

INTERPRETATION: - From the given data, it depicts that SBI has highest
investments i.e. Rs. 1,49,149 among Nationalized Banks as well as among all
different banks. On the other hand, ICICI Bank has highest investments i.e. Rs.
91,258 among Private Banks.

ADVANCES

DIFFERENT BANKS AMOUNT

STATE BANK OF INDIA (SBI) 337336
CANARA BANK 98506
PUNJAB NATIONAL BANK (PNB) 96597
BANK OF BARODA (BOB) 83621
BANK OF INDIA (BOI) 84936
ICICI BANK 195866
HDFC BANK 46945
AXIS BANK 36876
JAMMU & KASHMIR BANK 17080
FEDERAL BANK 14899

INTERPRETATION: - The above diagram depicts that among Nationalized Banks as

well as among all different banks, SBI has large number of advances i.e. Rs. 3,37,336.
And ICICI Bank has large number of advances i.e. Rs. 1,95,866 among Private
Banks.

INTEREST INCOME

DIFFERENT BANKS AMOUNT

STATE BANK OF INDIA (SBI) 39491
CANARA BANK 11365
PUNJAB NATIONAL BANK (PNB) 11537
BANK OF BARODA (BOB) 9213
BANK OF INDIA (BOI) 9180
ICICI BANK 22994
HDFC BANK 6889
AXIS BANK 4560
JAMMU & KASHMIR BANK 1899
FEDERAL BANK 1817

INTERPRETATION: - - From the given data, it depicts that SBI has highest interest
income i.e. Rs. 39,491 among Nationalized Banks as well as among all different
banks. On the other hand, ICICI Bank has highest interest income i.e. Rs. 22,994
among Private Banks.

OTHER INCOME

DIFFERENT BANKS AMOUNT

STATE BANK OF INDIA (SBI) 5769
CANARA BANK 1451
PUNJAB NATIONAL BANK (PNB) 1042
BANK OF BARODA (BOB) 1173
BANK OF INDIA (BOI) 1563
ICICI BANK 5929
HDFC BANK 1516
AXIS BANK 1010
JAMMU & KASHMIR BANK 160
FEDERAL BANK 287

INTERPRETATION: - The above data shows that SBI has highest Other Income i.e.
Rs. 5769 among Nationalized Banks. On the other hand, among Private Banks and all
different banks, ICICI Bank has highest Other Income i.e. Rs. 5929.

INTEREST EXPENDED

DIFFERENT BANKS AMOUNT

STATE BANK OF INDIA (SBI) 23437
CANARA BANK 7338
PUNJAB NATIONAL BANK (PNB) 6023
BANK OF BARODA (BOB) 5427
BANK OF INDIA (BOI) 5740
ICICI BANK 16358
HDFC BANK 3179
AXIS BANK 2993
JAMMU & KASHMIR BANK 1131
FEDERAL BANK 1085

INTERPRETATION: - - From the given data, it depicts that SBI has highest interest
expended i.e. Rs. 23,437 among Nationalized Banks as well as among all different
banks. On the other hand, ICICI Bank has highest interest expended i.e. Rs. 16,358
among Private Banks.

OPERATING EXPENSES

DIFFERENT BANKS AMOUNT

STATE BANK OF INDIA (SBI) 11824
CANARA BANK 2565
PUNJAB NATIONAL BANK (PNB) 3326
BANK OF BARODA (BOB) 2544
BANK OF INDIA (BOI) 2608
ICICI BANK 6691
HDFC BANK 2421
AXIS BANK 1215
JAMMU & KASHMIR BANK 372
FEDERAL BANK 406

INTERPRETATION: - The above bar diagram shows that SBI has large number of
Operating Expenses i.e. Rs. 11,824 among Nationalized Banks as well as among all
different banks. On the other hand, ICICI Bank has large number of operating
expenses i.e. Rs. 6,691 among Private Banks.

COST OF FUNDS(COF)

DIFFERENT BANKS COF

STATE BANK OF INDIA (SBI) 4.79
CANARA BANK 5.35
PUNJAB NATIONAL BANK (PNB) 4.24
BANK OF BARODA (BOB) 4.58
BANK OF INDIA (BOI) 4.55
ICICI BANK 5.34
HDFC BANK 4.58
AXIS BANK 4.96
JAMMU & KASHMIR BANK 4.56
FEDERAL BANK 5.11

INTERPRETATION: - The above data shows that Canara Bank has highest Cost Of
Funds i.e. 5.35 lakhs among Nationalized Banks. On the other hand, among Private
Banks, ICICI Bank has highest Cost Of funds i.e. 5.34. And Overall, among all
different banks, Canara Bank has highest Cost of Funds.

RETURN ON ADVANCES ADJUSTED TO COF

DIFFERENT BANKS RETURN ON ADVANCES ADJUSTED

TO COF

STATE BANK OF INDIA (SBI) 3.5

CANARA BANK 3.08
PUNJAB NATIONAL BANK (PNB) 4.69
BANK OF BARODA (BOB) 3.69
BANK OF INDIA (BOI) 3.97
ICICI BANK 4.08
HDFC BANK 5.99
AXIS BANK 4.17
JAMMU & KASHMIR BANK 4.01
FEDERAL BANK 4.51

INTERPRETATION: - The above diagram depicts that PNB has highest Return on
Advances Adjusted to COF i.e. 4.69 among Nationalized Banks. Whereas HDFC
Bank has highest Return on Advances Adjusted to COF i.e. 5.99 among Private Banks
as well as among all different banks.

WAGES AS % TO TOTAL EXPENSES

DIFFERENT BANKS WAGES AS % TO TOTAL EXPENSES

STATE BANK OF INDIA (SBI) 22.5
CANARA BANK 16.25
PUNJAB NATIONAL BANK (PNB) 25.16
BANK OF BARODA (BOB) 20.63
BANK OF INDIA (BOI) 19.33
ICICI BANK 7.01
HDFC BANK 13.87
AXIS BANK 9.06
JAMMU & KASHMIR BANK 14.63
FEDERAL BANK 17.47

INTERPRETATION: - The given data shows that PNB has highest wages as % to
total expenses i.e. 25.16 among Nationalized Banks as well as among all different
banks. On the other hand, Federal Bank has highest wages as % to total expenses i.e.
17.47 among Private Banks.

RETURN ON ASSETS

DIFFERENT BANKS RETURN ON ASSETS

STATE BANK OF INDIA (SBI) 0.84
CANARA BANK 0.98
PUNJAB NATIONAL BANK (PNB) 1.03
BANK OF BARODA (BOB) 0.72
BANK OF INDIA (BOI) 0.88
ICICI BANK 1.09
HDFC BANK 1.33
AXIS BANK 1.1
JAMMU & KASHMIR BANK 0.96
FEDERAL BANK 1.38

INTERPRETATION: - The above bar diagram depicts that PNB has largest Return on
Assets i.e. 1.03 among Nationalized Banks. And on the other hand, Federal Bank has
largest Return on Assets i.e. 1.38among Private Banks as well as among all different
banks.

CAPITAL ADEQUACY RATIO(CRAR)

DIFFERENT BANKS PERCENTAGE

STATE BANK OF INDIA (SBI) 12.34
CANARA BANK 13.5
PUNJAB NATIONAL BANK (PNB) 12.29
BANK OF BARODA (BOB) 11.8
BANK OF INDIA (BOI) 11.58
ICICI BANK 11.69
HDFC BANK 13.08
AXIS BANK 11.57
JAMMU & KASHMIR BANK 13.24
FEDERAL BANK 13.43

INTERPRETATION: - The given data shows that Canara Bank has highest Capital
Adequacy Ratio ie 13.5 among Nationalized Banks as well as among all aifferent
banks. Whereas Federal Bank has highest Capital Adequacy Ratio ie 13.43 among
Private Banks.

NET NPA RATIO

DIFFERENT BANKS NPA RATIO

STATE BANK OF INDIA (SBI) 1.56
CANARA BANK 0.94
PUNJAB NATIONAL BANK (PNB) 0.76
BANK OF BARODA (BOB) 0.6
BANK OF INDIA (BOI) 0.74
ICICI BANK 1.02
HDFC BANK 0.43
AXIS BANK 0.72
JAMMU & KASHMIR BANK 1.13
FEDERAL BANK 0.44

INTERPRETATION: - The above bar diagram depicts that SBI has highest Net NPA
Ratio ie 1.56 among Nationalized Banks and among all different banks. On the other
hand, J&K Bank has highest Net NPA Ratio ie 1.13 among Private Banks.

EXPLANATORY NOTES: -
This Is An Attempt To Provide Quick And Handy Access To Data
On Scheduled Commercial Banks From 2002-03 To 2006-07, Excluding
Regional Rural Banks.
This Is The Third Volume In The Series; First Volume Of The Series Was
Published For The Year 2004-05

Data Sources
Most Of The Data Presented In The Publication Are From
Annual Accounts Of Banks.
Data For The Previous Years Are From The Annual
Publication, Statistical Tables Relating To Banks In India;
Some Data For The Previous Years Have Been Revised.
Data For The Year 2006-07 Are From Published Annual
Accounts Of Banks.
Data On Number Of Offices Are From Master Office Files,
Desacs, Rbi
Data On Number Of Employees Are From Indian Banks
Association (Iba).

Data Definitions
Capital, Reserves & Surplus, Deposits, Investments, Advances,
Interest Income, Interest Expended And Operating Expenses Are
As In Annual Accounts Of BanksBusiness (Defined As Deposits
And Advances) Per Employee, Profit Per Employee, Return On
Assets, Capital Adequacy Ratio (Crar) And Net Non-Performing
Assets As Percentage Of Net Advances
(Net Npa Ratio) Are From Notes On Accounts Of Annual
Accounts
 Number Of Offices Is As Per Master Office File, Desacs, Rbi.
Cost Of Funds (Cof) Is Defined As The Ratio (In %) Of Interest
Paid On Deposits And Borrowings To Average
Of Deposits And Borrowings For The Years 2005-06 And 2006-
2007.
Cost Adjusted Return On Advances Is Cof Subtracted From Return
On Advances, Where Return On Advances Is Defined As The Ratio
(In %) Of Interest Earned On Advances To Average Of Advances
For The Years 2005-06
Wages As Percentage To Total Expenses Is Computed As The Ratio
Of Payment To And Provisions For Employees To Averages Of
Total Expenses For The Years 2005-06 And 2006-07.

Bank Group Level Averages

Business Per Employee (Or Profit Per Employee) Is Computed By
Dividing The Total Business (Or Profit) For The Group (As
Available In Annual Accounts) By The Number Of Employees In
The Group (As Obtained From Iba)
Cof Is Computed As The Ratio Of Interest Paid On Deposits And
Borrowings To Average Of Deposits And Borrowings Of The
Group For The Years 2005-06 And 2006-07.
Return On Advances Adjusted To Cof Is Computed By Subtracting
Cof For The Group From Return On Advances For The Group; The
Latter Is Computed As The Ratio Of Interest Earned On Advances
By The Group To Average Of Total Advances Of The Group For
The Years 2005-06 And 2006-07.
Return On Assets For A Group Is Obtained As Weighted Average
Of Return On Assets Of Individual Banks In The Group, Weights
 Being The Proportion Of Total Assets Of The Bank As Percentage
To Total Assets Of The Group.
Capital Adequacy Ratio And Net Npa Ratio For The Four Bank
Groups And Also For All Banks Have Been Obtained From Osmos,
Department Of Banking Supervision, Rbi
For Rest Of The Items, Simple Averages Are Used At The Group
Level.
Similar Definitions Are Used At All Banks Level.
All Banks Averages Are Computed Based On State Bank Group (8
Banks), Nationalised Banks (20), Foreign Banks (29) And Other
Scheduled Commercial Banks (24 Banks, Excluding Erstwhile
Lord Krishna Bank).
Idbi Limited Is Considered As A Nationalised Bank

General
As On The Date Of Publication, Detailed Annual Account Of Erstwhile
Lord Krishna Bank, Now Merged With Centurion Bank Of Punjab, Is Not
Available. However, Limited Data For The Erstwhile Bank, As Made
Available, Have Been Provided Here.
 BIBLIOGRAPHY
www. Britannica.com
wordnet.princeton.edu/perl/webwn
en.wikipedia.org/wiki/Banking
www.pnbindia.com
www.rbi.org.in
www.financialexpress.com
www.indian-bank.com
www.icicibank.com
www.hdfcbank.com
www.encyclopedia.com
www.statebankofindia.com
www.bankofindia.com
www.bankofbaroda.com
www.jkbank.net