DOMAIN DOYENS

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DOMAIN DOYENS INDUSTRY SECTOR- BANKING

Transcript of DOMAIN DOYENS

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DOMAIN DOYENS

INDUSTRY SECTOR- BANKING

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INTRODUCTION TO THE BANKING SECTOR

A bank is a financial intermediary that creates credit by lending money to a borrower, thereby creating a corresponding deposit on the bank's balance sheet.

Banking began around 2000 BC in Assyria and Babylonia ,with its first prototype in the bank of merchants , which provided  loans to farmers and traders who carried goods between cities.

Modern banking began in the 17th and the 18th century in England which started issuing bank notes and accepting gold deposits from goldsmiths.

The Bank of England was the first to begin the permanent issue of banknotes, in 1695.

The Royal Bank of Scotland established the first overdraft facility in 1728.

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EVOLUTION OF BANKING IN INDIA

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THE STRUCTURE OF BANKING SECTOR IN INDIA

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Clients

Includes Auto Finance, Consumer Banking, Home Finance, Insurance and Small Business Banking

Provides mutual fund, insurance & home finance and workplace banking products to consumers and small businesses

One of the world’s leading investment banks

Services provided: Advice on corporate strategy and structure, raising and placing capital, making markets in financial instruments and offering sophisticated risk management services

Provides investment & wealth management services to institutional investors, high net worth individuals & retail customers

Provides personalized solutions to wealthy individuals

Global leader in transaction processing and information services to wholesale clients

Three Businesses: Institutional Trust Services, Investor Services(WSS) and Treasury Services

Major provider of financial services including corporate finance, cash management, & credit

Comprises of five national business segments: Middle Market Banking, Mid-Corporate Banking, Commercial Real Estate, Asset Based Lending and Commercial Leasing

Delivers credit card and other related payment products to cardholders and merchant outlets

Aims to be the preferred payment card in existing customers wallets and to increase access to new customers

Investment Bank

Treasury and Securities Services

Card Services

Asset and

wealth Manageme

nt

Retail Financial Services

CommercialBanking

BANKING AS A WHOLE

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MAJOR PLAYERS IN BANKING SECTOR

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INDIAN AND GLOBAL CONTEXT OF THE BANKING SECTOR In 2015, value of public sector bank assets were

USD1.4 Trillion. Total Indian banking sector assets has reached USD1.8 trillion in FY14 from USD1.3 trillion in FY10, with over 70 per cent accounted by the public sector.

Total lending and deposits have increased at CAGR of 20.7 per cent and 19.7 per cent, respectively, during FY07-14.

Total number of ATMs in India have increased to 182,480 by the end of April’15 and is further expected to double over the next few years.

Jan Dhan Yojna and importance of Financial Inclusions. Penetration into the rural areas.

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CURRENT SCENARIO OF GLOBAL BANKING SECTOR Crisis in the international markets like China and

Greece have led international banks into problems. Continuous fluctuations in the currencies also impact

Foreign banks. Due to different rules and norms In different countries

where the banks serve, they face various problems and have to pay huge amounts of fines.

There are always changes going on in the management of these banks which affect them.

Constant mergers acquisitions and investments are very regular in this sector.

Banks are majorly investing in start-ups and E-commerce companies.

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SWOT ANALYSISSTRENGTH WEAKNESS

•Stable growth and substantial profits•Valuable contributor to GDP •Regulatory environment •Government Support•Wide Network

•Increasing NPA’s•Low penetration •Lack of product differentiation •Weaker sections of the economy untouched

OPPORTUNITIES THREATS

•Modern Technology•Untapped Rural Market •Globalization •Developing Economy

•Unorganized money lending market •Rise of monopolistic structures•Threat of instability of the system: failure of some weak banks•Payment Banks•High rate of Inflation

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GOVERNMENT POLICIES AND ITS IMPACT Issuance of New Banking Licenses- Increasing the

number of banks would promote financial inclusion, foster competition, and there by reduce costs and improve the quality of banking services.

Wholly Owned Subsidiary by foreign banks-The framework provides foreign banks with an opportunity to refine their India market plans in terms of capital and management commitments to size the growth opportunities in form of both organic as well as inorganic options.

Priority Sector Lending- Provision of easy, adequate and timely credit to priority sectors that otherwise would not receive easy finance.

FDI Limit in Banks- The FDI inflows would help banks to meet their capital requirement, and ensure better and improved risk management, thereby making the Indian banking sector more competitive.

Basel III Norms-These would help to strengthen the regulation, supervision, and risk management of the Indian banking sector thereby reducing the risk of spill over from financial sector to real economy.

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FUTURE PROSPECTS

India’s gross domestic product (GDP) growth will make the Indian banking industry the third largest in the world by 2025.

the domestic banking industry is set for an exponential growth in coming years with its assets size poised to touch USD 28,500 billion by the turn of the 2025.

With the deposits growing at a CAGR of 21.2 per cent (in terms of INR) in the period FY 09–14, there has been evident growth in the overall industry.

This growth can be attributed to banks shifting focus to client servicing.

Public as well as private sector banks are underlining the importance of technology infrastructure, in order to improve customer experience and gain a competitive edge.

Utilizing the popularity of internet and mobile banking, banks are increasingly adopting an integrated approach for asset–liability match, credit and derivatives risk management.

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INTRODUCTION Yes Bank, incorporated in 2004 by Rana Kapoor and Late

Ashok Kapur. YES BANK’s vision is to become the ‘Finest Quality Bank of

the World’ in India by 2020’ having evolved its organizational ethos into the ‘Professionals’ Bank of India’.

Offers a full-range of client-focused corporate banking services, including working capital finance, specialized corporate finance, trade and transactional services, treasury risk management services, investment banking solutions and liquidity management solutions among others to a highly focused client base.

It became the first Indian Bank to become a signatory with the United Nations Environment Programme (Financial Initiative).

In March 2014- The Bank was awarded the Ramkrishna Bajaj National Quality (RBNQ) Business Excellence Award - 2013 �in the Services Category.

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SWOT ANALYSISSTRENGTH WEAKNESS

•High Quality, Customer Centric, Service Driven, Private Indian Bank Catering To The “Future Industries Of India”•WorldClass Team, Based On Professional Recruitment Methodologies, And Attract The Best Talent In The Industry.•Building Learning And Development Solutions that Continuously Enhance Employee Value, High Performance Culture.•Robust Rewards And Recognition Strategy.

•Less wide network.•Market Capitalization is very slow.•Less promotional activity•Unknown brand

OPPORTUNITIES THREATS•Very wide market.•Other activity(insurance, stock broking, mutulfund).•Wide scope in rural area.•New Acquisitions.•Investment Portfolio Securities.

•Very high competition Private bank market (ICICI Bank, HDFC bank), In public sector (BOB, PNB).•Other better Saving, investment option available (like Insurance, Mutulfund, Real-estate, Gold).•Capital Market slow-down.•Government Rules And Regulation.

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COMPANY MANAGEMENT Name Designation

Radha Singh Non Exe.Part Time ChairpersonM R Srinivasan Director

Brahm Dutt Independent DirectorMukesh Sabharwal Independent DirectorVasant V Gujarathi Independent Director

Rana Kapoor Managing Director & CEOAjay Vohra Independent Director

Diwan Arun Nanda DirectorSaurabh Srivastava Independent Director

Ravish Chopra Independent Director

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PRODUCTS AND SERVICES

Corporate and Institutional Banking- The bank offers a broad range of financial and risk management solutions to clients such as large Indian corporate and groups, multinational companies, central and state governments, government bodies and public sector enterprises.

Business Banking- Yes Bank offers a range of products, services and resources to small and medium businesses.

Corporate Finance- It offers corporate finance solutions to various clients such as local corporate, multinational companies, financial institutions and public sector undertakings.

Retail Banking- Under this, the  bank offers wide range of products and services such as saving account, current account, fixed deposit, retail loan, depository services and many more.

Investment Banking- Yes Bank offers investment banking services in area of mergers and acquisitions, divestitures, private equity syndication and IPO advisory.

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FINANCIAL DETAILS(5YRS)

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Cont..

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CLIENTS Local Corporate Multinational Companies Financial Institutions Public Sector Undertakings

Examples- Bajaj Allianz- General Insurance Bharti Airtel- Telecom Connectivity CISCO- Technology Innovation and Infrastructure Cognizant Technology Solutions- Application Development

-Business Process Management Platform IBM- Technology Hardware Max Life Insurance Co Ltd- Life Insurance

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COMPETITORS

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FUTURE PLANS High growth rates in the past, ambitious  expansion plans ahead -

total number of branches & ATMS by 900 & 2000 from the current 430 & 951 by the year 2015. It aims to have a deposit base of 1, 25,000 lakh crore and an employee base of 12,750 by 2015.

5-year sponsorship deal with IPL- facilitate the brand recognition all over the country.

Diversified Advances & Superior Asset Quality- Advances to Large and mid-size corporates forms around 80% of the total advances. The rest 20% is contributed by retail advances.

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MY JOB PROFILE

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Job Title: Associate/ Manager- Corporate Banking RM 

Job Description: At YES BANK, we have institutionalized Corporate Banking dedicated to serve companies in the high octane middle market segment (500+ Cr Turnover), offering entire suite of products that include Corporate finance, Working Capital, Trade and Payment services, Project advisory.

ASSOCIATE/ MANAGER

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KEY SKILLS Basic knowledge of corporate banking

marketing concepts In depth knowledge of Indian market for

corporate & institutional financial services Technical and professional know-how Service focussed Drive for making things happen Innovation and creativity Open to change and eagerness to grow 

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RESPONSIBILITIES • Revenue Generation: Achieve Banks objective in terms of

earnings, assets, liabilities, credit quality etc. as per agreed budgets/targets from client relationship across all product groups• Relationship Management: Acquire new client relationships and grow & maintain high quality, profitable and broad based relationships with existing client base. Handle activities ranging from identifying clients financial needs, advising, structuring the deal, preparing the terms and conditions and closing the deal• Credit Appraisal: Appraisal of the proposals involving detailed analysis of Income Statement, Balance Sheet, Financial Ratios, Cash Flows, Management Risk, Industry Risk, Economic conditions• Documentation & Compliance: To maintain high quality standards of documentation, client communication, process compliance, ongoing basis with product partners /OSD /Risk Management and other Relationship Management groups• Assess banking needs and risks for clients and manage client relationships accordingly to optimize risk-reward for the Bank 

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CHALLENGES Regulations, competition and mobilisation of

deposits Adapting to the new environment in the

banking system Acquisitions and mergers Staff Engagement Branch Targets Operational Management

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CAREER GROWTH Bank officer Assistant manager Branch manager Regional manager Deputy general manager General manager CEO Chairman

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THANK YOU!