Research And Analysis On The Indian Banking Industry Finance Essay - Free Essay Example

Sample details Pages: 17 Words: 4977 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? The Indian banking industry currently termed as strong, having weathered the global economic slowdown and showing good numbers with strong support flowing in from the Reserve Bank of India (RBI) measures. A report Opportunities in Indian Banking Sector, by market research company, RNCOS, forecasts that the Indian banking sector will grow at a healthy compound annual growth rate (CAGR) of around 23.3 per cent till 2011. Banking, financial services and insurance (BFSI), together account for 38 per cent of Indias outsourcing industry (worth US$ 47.8 billion in 2007). Don’t waste time! Our writers will create an original "Research And Analysis On The Indian Banking Industry Finance Essay" essay for you Create order According to a report by McKinsey and NASSCOM, India has the potential to process 30 per cent of the banking transactions in the US by the year 2010. Outsourcing by the BFSI to India is expected to grow at an annual rate of 30-35 per cent. According to a study by Dun Bradstreet (an international research body)-Indias Top Banks 2008-there has been a significant growth in the banking infrastructure. Taking into account all banks in India, there are overall 56,640 branches or offices, 893,356 employees and 27,088 ATMs. Public sector banks made up a large chunk of the infrastructure, with 87.7 per cent of all offices, 82 per cent of staff and 60.3 per cent of all ATMs. According to the RBI, Indian financial markets have generally remained orderly during 2008-09. In view of the tight liquidity conditions in the domestic money markets in September 2008, the Reserve Bank announced a series of measures beginning September 16, 2008. Thus, the average call rate which was at 10.52 per ce nt declined to 7.57 per cent in November 2008 under the impact of these measures. 2. INDUSTRY PROFILE 2.1 Definition Bank may be defined as a financial institution which is engaged in the business of keeping money for savings and checking accounts or for exchange or for issuing loans and credit etc. A set of services intended for private customers and characterized by a higher quality than the services offered to retail customers. Based on the notion of tailor-made services, it aims to offer advice on investment, inheritance plans and provide active support for general transactions and the resolution of asset-related problems. The essential function of a bank is to provide services related to the storing of deposits and the extending of credit. Basic function may include Credit collection, Issuer of banking notes, Depositor of money and lending loans. 2.2 Segments Banks in India can be categorized into non-scheduled banks and scheduled banks. Scheduled banks constitute of commercial banks and co-operative banks. There are about 67,000 branches of Scheduled banks spread across India. During the first phase of financial reforms, there was a nationalization of 14 major banks in 1969. This crucial step led to a shift from Class banking to Mass banking. Since then the growth of the banking industry in India has been a continuous process As far as the present scenario is concerned the banking industry is in a transition phase. The Public Sector Banks (PSBs), which are the foundation of the Indian Banking system account for more than 78 per cent of total banking industry assets. Unfortunately they are burdened with excessive Non Performing assets (NPAs), massive manpower and lack of modern technology. On the other hand the Private Sector Banks in India are witnessing immense progress. They are leaders in Internet banking, mobile banking, phone banking, ATMs. On the other hand the Public Sector Banks are still facing the problem of unhappy employees. There has been a decrease of 20 percent in the employee strength of the private sector in the wake o f the Voluntary Retirement Schemes (VRS). As far as foreign banks are concerned they are likely to succeed in India. Indusland Bank was the first private bank to be set up in India. IDBI, ING Vyasa Bank, SBI Commercial and International Bank Ltd, Dhanalakshmi Bank Ltd, Karur Vysya Bank Ltd, Bank of Rajasthan Ltd etc are some Private Sector Banks. Banks from the Public Sector include Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank, Andhra Bank etc. ANZ Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd, Citibank etc are some foreign banks operating in India. 3. MARKET DYNAMICS 3.1 Market Overview The banking sector is a very important sector of the Indian economy. The sector has made a marked improvement in the liberalization period. There has been extraordinary progress in the financial health of the commercial banks with respect to capital adequacy, profitability, asset quality and risk management. Deregulation has opened new doors for banks to increase revenues by entering into investment banking, insurance, credit cards, depository services, mortgage, securitization, etc. The major participants of  the Indian financial system are the commercial banks, the financial institutions (FIs), encompassing term-lending institutions, investment institutions, specialized financial institutions and the state-level development banks, Non-Bank Financial Companies (NBFCs) and other market intermediaries such as the stock brokers and money-lenders. The commercial banks and certain variants of NBFCs are among the oldest of the market participants. The FI s, on the other hand, are relatively new entities in the financial market place. The challenges faced by the sector would be gaining profitability, reinforcing technology, maintaining global standards, corporate governance, sharpening skills, risk management and, the most important of all, to establish Customer Intimacy. The insurance business is one of the most rapidly growing areas in the financial sector. Growth in Banking sectors HDFC Bank and Axis Bank continue to remain as leaders of the private sector banks. Both the banks have maintained the advances growth and NIM. SBI, Punjab National Bank, Bank of India and Union Bank are expected to lead among PSU Banks. Public sector banks (PSBs) on January 12, 2009 also decided to lower interest rates on bulk deposits and to offer a maximum rate of 7.5 per cent for one-year maturity. According to the latest RBI data, growth in broad money (M3), year-on-year (y-o-y), was 19.6 per cent (US$ 151.04 billion) on January 2, 20 09 lower than 22.6 per cent (US$ 141.82 billion) a year ago. Aggregate deposits of banks, year-on-year, expanded 20.2 per cent (US$ 133.08 billion) on January 2, 2009 as compared with 24.0 per cent (US$ 127.49 billion) a year ago. The growth in bank credit continued to remain high. Non-food credit by scheduled commercial banks (SCBs) was 23.9 per cent (US$ 102.78 billion), year-on-year, as on January 2, 2009 from 22.0 per cent (US$ 77.79 billion) a year ago. Scheduled commercial banks credit to the commercial sector expanded by 27.0 per cent (year-on-year) as on November 21, 2008, as compared with 23.1 per cent a year ago. Non-food credit of scheduled commercial banks expanded by 26.9 per cent, year-on-year, as on November 21, 2008, higher than 23.7 per cent a year ago. Net banking capital amounted to US$ 4.8 billion in April-September 2008 as compared with US$ 5.7 billion in April-September 2007. Lending by banks also rose more than 76 per cent to Rs 2,80,000 crore ( US$ 57.26 billion) during April-November 2008-09 from the same period a year ago. ( Source- RBI Website ) 3.3 Trend Analysis ( Source- CMI Data Base- Prowess ) 3.3.1 Declining NPA Ratio: The net NPA ratio of Indian banks stood at 1 % in March 2008 as compared to 7 % in March 2000. Indeed, the recent global financial crisis is expected to have only a limited impact on Indian banks. Indian banking system is robust given the high Capital Adequacy Ratio, low NPAs, about 30% of the balance sheet in the form of government securities and cash, and low level of leveraging. 3.3.2 Increasing Number of Mergers There has been an increase in numbers of mergers as mergers and acquisition route is providing a quick step to acquire competitive size and offering banks an opportunity to share markets and reduce cost of product development and delivery. Consolidation in the banking sector is inevitable Mergers of smaller, newer banks would be much easier than the PSU banks, due to legal and social constraints. India is now moving in the direction of fewer but larger mega banks. While merging banks should keep in mind the inherent strengths and weaknesses of a taken over bank. Fundamental features like Portfolio, NPA levels, capital adequacy, technology levels, staff issues should be closely considered when planning for a merger. 3.3.3 Declines in Non Performing Assets (NPA) The gross NPAs of the scheduled commercial banks, which were as high as 15.7 per cent at end-March 1997, declined significantly to 2.4 per cent as at end-March 2008. The net NPAs of these banks during the same period declined from 8.1 per cent to 1.08 per cent. These figures too compare favorably with the international trends and have been driven by the improvements in loan loss provisioning by the banks as also by the improved recovery climate enabled by the legislative environment. 3.4 Key Drivers 3.4.1 Innovations The banking sector in India saw greater emphasis being pl aced on technology and innovation. Banks began to use technology to provide better quality of services at greater speed. Internet banking and mobile banking made it convenient for customers to do their banking from geographically diverse places. Banks also sharpened their focus on rural markets and introduced a variety of services geared to the special needs of their rural customers. Banking activities also transcended their traditional scope and new concepts like personal banking, retailing and banc assurance were introduced. The sector was also moving rapidly towards universal banking and electronic transactions, which were expected to change the way banking would be perceived in the future. 3.4.2 Improvements in the Regulatory Environment The regulatory environment in India is liberal in regard to the functioning of the foreign banks and whether the regulatory approach towards foreign participation in the Indian banking system is consistent with liberalized environment. Und oubtedly, the facts indicate that regulatory regime followed by the Reserve Bank in respect of foreign banks is non-discriminatory, and is, in fact, very liberal by global standards. Here are a few facts which bear out the contention. No restrictions have been placed on establishment of non-banking financial subsidiaries in India by the foreign banks or of their group companies. 4. PEST ANALYSIS 4.1 Political Factors 4.1.1 Regulations: Banking institution is flattering from compiling with the sets of regulations such as AMI( Anti- money laundering ), SOX (Sarbannes Oxley act ),etc. These regulations can pose challenges because of technological constraints and can impact on the profit banks are making. But from different prospective, one must comply with these regulations not only because they are mandatory but also because it will help in reputation building and customer and culture orientation. It is essential for global institution to comply with both the national as w ell as international regulations as it helps them establish ties with foreign countries as they view as reliable organizations. Technology makes it easier to comply with regulations. In case of the national banks, they are bound to have branches across India. Especially in case of bank with global presence, technology plays an important role as multiple regressions specific to the countries or region have to be complied with. A judiciously integrated solution system enables even a mammoth size financial institution to comply with regulation at ease. Banks need to adopt a holistic approach in order to comply with national, international, and regional regulations. Especially the bank has international presence then this become more necessary as they would have to fall in line for all three regulatory bodies. 4.1.2 High Capital Adequacy Ratio (CAR) for Implementation of Basel II: The Basel Capital Accord (Basel II) guidelines promulgated by the BIS to establish capital adequac y requirements and supervisory standards for banks to be implemented by 2007 and are structured by three pillars. The Basel II is designed to facilitate a more comprehensive, sophisticated and risk sensitive approach for banks to calculate regulatory capital. The proposals will enable banks to align regulatory requirements more closely with their internal risk measurement and to improve operational process. The Committee today consists of central bankers and supervisory regulators from 13 countries. Basel II attempts to accomplish protect the international financial system by setting up rigorous risk and capital management requirements designed to ensure that a bank holds capital reserves appropriate to the risk the bank exposes itself to through its lending and investment practices. In simple terms, the greater risk to which the bank is exposed, the greater the amount of capital the bank needs to hold to safeguard its solvency and overall economic stability. The basic purpose of this recommendation is to ensure that capital allocation is more risk sensitive, separating operational risk from credit risk and quantifying both, and attempting to align economic and regulatory capital more closely to reduce the scope for regulatory arbitrage. The 3-Pillar Approach of Basel II ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Minimum Capital Requirement (Addressing Credit Risk, Operatinal Risk Market Risk) ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Supervisory Review (Provides Framework for Systematic Risk, Liquidity Risk Legal Risk) ÃÆ' ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬Ãƒâ€šÃ‚ ¢ Market Discipline Disclosure (To promote greater stability in the financial system) 4.2 Economic Factors The Indian banking system is relatively insulated from the factors leading to the turmoil in the global banking industry. According to rating agency CRISIL, the recent tight liquidity in the Indian market is qualitatively different from the global liquidity crunch, which has been caused by a crisis of confidence in banks lending to each other. RBIs recent initiatives, including the reduction in CRR by 150 basis points from 11 October 2008, cancellation of two auctions of government securities, and confidence-building communication, have already begun easing liquidity pressures. The strong capitalization of Indian banks, with an average Tier I capital adequacy ratio of above 8 per cent, is a positive feature in their credit risk profile. Indian banks do face challenges in the current Indian economic environment, marked by a slower gross domestic product growth, depressed capital market conditions, and relatively high interest rate regime. The profitability of Indian banks is expected to remain under pressure due to increased cost of borrowing, declining interest spreads, and lower fee income due to slowdown in retail lending. 4.3 Social Factors Banking industry has played a major role socially. It has led to increased savings from the society in various ways like Savings Bank account, Fixed Deposit Account etc. It has led to habit of saving among the mass plus offering the society an interest for its savings. Over the years the banks in this industry have been the key players in building the economy by the way of lending people and taking their savings for the countrys well being. 4.3.1 Increased Usage of Online Banking Advantages previously held by large financial institutions have shrunk considerably. The Internet has leveled the playing field and afforded open access to customers in the global marketplace. Internet banking is a cost-effective delivery channel for financial institutions. Consumers are embracing the many benefits of Internet banking. Access to ones accounts at anytime and from any location via the World Wide Web is a convenience unknown a short time ago. Thus, a banks Internet presence transforms from brouchreware status to Internet banking status once the bank goes through a technology integration effort to enable the customer to access information about his or her specific account relationship. The six primary drivers of Internet banking includes, in order of primacy are: Improve customer access Facilitate the offering of more services Increase customer loyalty Attract new customers Provide services offered by competitors Reduce customer attrition 4.4 Technological Factors 4.4.1 IT Services Indian banking industry, today is in the midst of an IT revolution. A combination of regulatory and competitive reasons has led to increasing importance of total banking automation in the Indian Banking Industry. Information Technology has basically been used under two different avenues in Banking. One is Communication and Connectivity and other is Business Process Reengineering. Information technology enables sophisticated product development, better market infrastructure, implementation of reliable techniques for control of risks and helps the financial intermediaries to reach geographically distant and diversified markets. In view of this, technology has changed the contours of three major functions performed by banks, i.e., access to liquidity, transformation of assets and monitoring of risks. Further, Information technology and the communication networking systems have a crucial bearing on the efficiency of money, capital and foreign exchange markets. Banks as well as other financial entities entered the world of information technology and with Indian Financial Net (INFINET). INFINET, a wide area satellite based network (WAN) using VSAT (Very Small Aperture Terminals) technology, was jointly set up by the Reserve Bank and Institute for Development and Research in Banking Technology (IDRBT) in June 1999. The Indian Financial Network (INFINET) which initially comprised only the public sector banks was opened up for participation by other categories of members. The first set of applications that could benefit greatly from the use of technologi cal advances in the computer and communications area relate to the Payment systems which form the lifeline of any banking activity. The process of reforms in payment and settlement systems has gained momentum with the implementation of projects such as NDS ((Negotiated Dealing System), CFMS (Centralized Funds Management System) for better funds management by banks and SFMS (Structured Financial Messaging Solution) for secure message transfer. This would result in funds transfers and funds-related message transfer to be routed electronically across banks using the medium of the INFINET. Negotiated dealing system (NDS), which has become operational since February 2002 and RTGS (Real Time Gross Settlement system) scheduled towards the end of 2003 are other major developments in the area. Internet has significantly influenced delivery channels of the banks. Internet has emerged as an important medium for delivery of banking products services. Detailed guidelines of RBI for Internet Banking has prepared the necessary ground for growth of Internet Banking in India. 4.4.2 Mobile Banking M-Commerce The Commerce of Convenience The leaders of telecom in India, Reliance and Airtel have taken the lead in offering m-commerce services. From bill payments to airline and railway ticketing to booking movie tickets and other random services, the services providers offer it all-Commerce in India is on a huge growth path and hybrid m-commerce service providers such as Pay mate now offering innovative services never heard of before. Mobile pays the bills PayMate allows mobile subscribers to make payments for merchant services using their cell phones. It is connected to merchants and banks to enable transactions. PayMate allows a transaction to be completed with a single SMS (one click) technology. ATM banking costs 80% while Internet and telebanking costs only 15% compared to normal banking transactions. Private sector Banks have pioneered internet banking, phone banking, anywhere banking, mobile banking, debit cards, Automatic Teller Machines (ATMs) and combined various other services and integrated them into the mainstream banking arena. Apart from the Mobile Banking, including of SMS Banking, Net Banking and ATMs are the major steps taken by the banks in India towards modernisation. With all these devices and systems, there is a complete freedom to experience. 5. MICHAEL PORTERS FIVE FORCE ANALYSIS 5.1 Buyers Power 5.1.1 Specialized Products for Women and Students Single women are increasingly making up the second-largest group of home-buyers, though their size is still small compared with the number of mortgage loans availed by men. ABN Amro Bank and Citibank have designed special womens accounts that cater to the investment requirements of the female investor, offering benefits such as free consultancy and advice, reduced minimum balance, breaks in process fees and even lower interest rates on loans. There are students special accounts called youth power in ICICI, and the also help students with educational loans. 5.2 Supplier Power 5.2.1 Fragmented Mobile Payment Solutions Market The telecom story in India has been a huge success. A 100 million plus mobile users is a dream come true for marketers. If thats not all the number of users is growing by as much as 3 million a month. The numbers are hugely in favor of m-commerce. Mobile phone users in India outnumber credit and debit cards and internet users 2.5 to one. 5.3 Intensity of Competition 5.3.1 New Entrants Intensifying the Competition Foreign Banks in India always brought an explanation about the prompt services to customers. After the set up foreign banks in India, the banking sector in India also become competitive and accurative.Foreign banks are likely to succeed in their niche markets and be the innovators in terms of technology introduction in the domestic scenario which will increase the competition in the domestic b anking industry. The outlook for the private sector banks indeed looks to be more promising vis-à  -vis other banks. While their focused operations lower but more productive employee force etc will stand them good, possible acquisitions of PSU banks will definitely give them the much needed scale of operations and access to lower cost of funds. 5.4 Threat of New Entrants 5.4.1 Focus on Niche Segments Foreign banks are likely to succeed in their niche markets and be the innovators in terms of technology introduction in the domestic scenario. The outlook for the private sector banks indeed looks to be more promising vis-à  -vis other banks. While their focused operations, lower but more productive employee force etc will stand them good, possible acquisitions of PSU banks will definitely give them the much needed scale of operations and access to lower cost of funds. These banks will continue to be the early technology adopters in the industry, thus increasing their efficie ncies. Also, they have been amongst the first movers in the lucrative insurance segment. Already, banks such as ICICI Bank and HDFC Bank have forged alliances with Prudential Life and Standard Life respectively. This is one segment that is likely to witness a greater deal of action in the future. In the near term, the low interest rate scenario is likely to affect the spreads of majors. This is likely to result in a greater focus on better asset-liability management procedures. Consequently, only banks that strive hard to increase their share of fee-based revenues are likely to do better in the future. 5.4.2 Regulatory Reforms Limiting Foreign Presence Expansions through acquisitions offer limited prospects, however, as foreign investors still encounter restrictions when purchasing stakes in Indian banks. Investment by foreign institutional investors (FIIs) in PSBs are subject to an overall statutory limit of 20%. Foreign banks are permitted to acquire controlling stakes on ly in those banks that have been earmarked by the RBI for restructuring. There are also limits on portfolio investment in shares issued by private banks. FIIs are permitted to acquire up to 10% of the capital of a private sector bank, with an aggregate limit of 24% for all FIIs in any individual bank (which can be raised to 49% if a resolution is passed by the banks board of directors followed by a special resolution of its general body). The aggregate foreign investment in existing private banks from all foreign sources (FDI, FIIs and nonresident Indians) cannot exceed 74% of the private banks paid-up capital. 5.5 Threat of Substitute Products 5.5.1 Informal Financing in the Rural Sector Proxy Banking is an innovation in banking system that will simplify agricultural lending and also add to the increasing base of kisan credit cards. Proxy banking has become a subject of curiosity among the people living in rural areas include; more than sixty percent of rural households have no bank accounts as yet, whereas just twenty percent of the rural households can obtain credit from a formal source. Also, branch banking is not a feasible option in rural areas 6. COMPETITIVE LANDSCAPE HDFC Bank and Axis Bank continue to remain as leaders of the private sector banks. Both the banks have maintained the advances growth and NIM. SBI, Punjab National Bank, Bank of India and Union Bank are expected to lead among PSU Banks. The competitive analysis of five banks i.e. SBI, ICICI Bank, HDFC Bank, Punjab National Bank (PNB) and ING Vysya Bank has been done. 6.1 Competitive Strategy ICICI Bank- It strategy of using a client-centric business model by instituting relationship groups to actively cross-sell the full range of the ICICI Groups products and services to its clients has yielded the desired results, as demonstrated by the robust growth in business volumes. ICICI also aggressively expanded its client base by leveraging its structuring skills, based on a customized approach HDFC Bank- Its objective is to build sound customer franchises across distinct businesses so as to be a preferred provider of banking services for target retail and wholesale customer s egments, and to achieve a healthy growth in profitability, consistent with the Banks risk appetite. The bank is committed to do this while ensuring the highest levels of ethical standards, professional integrity, corporate governance and regulatory compliance. Punjab National Bank- In order to achieve growth , PNB follows the strategy either to increase the existing fund size or launch new products. ING-VYSYA Bank- ING Vysya has adopted a two-fold strategy for growth expansion of branch network and deepening its relationship with customers by offering new products to increase its market share 6.2 Economic Activity: SBI- Incorporated in 1955, State Bank of India is a public sector bank providing banking, financial and leasing services. It is also involved in mutual fund and capital market activities through its subsidiaries. ICICI Bank- Engaged in banking services. It engages in a range of banking products and financial services to corporate and retail customers, inv estment banking, life and non-life insurance, venture capital, asset management and information technology. HDFC Bank- It offers a range of services such as corporate banking, treasury and capital market services, housing finance, advisory services and custodial services to FIIs, mutual funds and others. ING-VYSYA Bank- Incorporated in 1930. It offers various banking related services. It engages in corporate banking, retail banking, rural banking, commercial banking, treasury management and provides financial products. 6.3 Financial Analysis 6.3.1 Income Statement Analysis  PAT in Rs Cr. OPERATING INCOME in Rs Cr State Bank Of India 2478.42 18030.34 ICICI Bank Ltd. 1272.15 7836.08 HDFC Bank Ltd. 621.74 5407.89 ING Vysya Bank Ltd. 52.05 620.21 SBI had the highest net income of Rs 2478 Cr and has resulted in a drastic increase by 32.8% Operating Margin and Expenses by 29.2% in FY2008 as compared to the FY2007- SBI has registered significant improvements in its operating margins since 2003. Technology up gradation has enabled the bank to reduce inconsistencies. ICICI Bank, HDFC Bank and ING-VYSYA Bank has earned net profit of Rs 1272 Cr, Rs 621.74 Cr and Rs 52.05 Cr with a decrease of.957% and increase of 63.86% and 47.41% in their Operating margins respectively. 6.3.2 Balance Sheet Analysis  HDFC Bank SBI ICICI Bank ING Vysya Bank PAT/Total income 12.15 10.25 7.41 11.52 Networth 8770.7 46820.2 1535.65 49032.66 Quick ratio 3.96 2.27 2.48 1.56 Current ratio 3.97 2.58 2.51 1.6 Debt equity ratio 1.03 1.85 1.22 1.49 Interest cover 1.37 1.21 1.21 1.33 No. of employees 14739 0 5852 179205 No. of branches 651 1262 446 10270 EPS on accounting year end 29.94 37.37 13.33 106.56 PAT/Total Income- There has been a constant increase in PAT/Total income in SBI Bank from 9.64 to 11.52 in last 5 years but HDFC and ICICI Banks show increase in 2005 and there a constant decrease in this ratio. ING-VYSYA Bank has a negative PAT/Total Income ratio of -3.17 in 2005 but it has recovered to 7.41 in 2008. Quick Ratio- There has been a constant increase in quick ratio in HDFC Bank, ICICI Bank, ING-VYSYA Bank in last 5 years but increase in SBI Ban k as more inventories and even liabilities has increased. Current Ratio- There has been a constant increase in quick ratio in HDFC Bank and a fluctuation of increase-decrease in ICICI and ING-VYSYA Banks but has shown an increase in last 2 years. But this ratio has declined in SBI Bank from 1.73 to 1.60 last year. Debt Equity Ratio ICICI Bank plans to finance its expansion plans over the next few years by raising capital through equity, and not debt and there is a constant decrease in this ratio from 4.86 to 1.85 where there has been a constant increase in SBI Bank from .85 to 1.49 since last 5 years. No. of Employees- There has been a cut in no. of employees in SBI banks from 207039 in 2004 to 179205 in 2008 but still it has the highest employees and a constant increase in no. of employees in rest banks but HDFC has a drastic increase in their numbers from 5673 to 37836 employees in last 5 years. No. of Branches- The no. of branches has increased in all the banks and t he SBI has the highest of about 10270 branches Return on Equity Despite the decline in returns on equity in 2004-05, SBI generated healthy returns on equity in 2008. 6.4 Stock Market Performance The five key players stock price performance is as follows: ( Source- CMI Data Base- Prowess ) Till February 2009, SBI has highest stock price of Rs 1194 which is a public sector bank and HDFCs stock price is Rs 945.5 which is a private sector bank. ICICI Bank and PNB Bank has similar stock price performance as Rs 434 and Rs 409 respectively. ICICI Bank has slight higher stock price as compared to PNB Bank. ING-VYSYA Bank has least stock price as compared to all these banks of Rs 134.55. STOCK RATIOS  P/E P/B Yield EPS H D F C Bank Ltd. 19.29 3.05 0.9 49.02 I C I C I Bank Ltd. 11.61 0.98 2.53 37.41 I N G Vysya Bank Ltd. 7.56 0.88 1.11 17.79 State Bank Of India 9.46 1.37 1.8 126.24 HDFC Bank has highest price per earning (P/E) ratio and price per book value (P/B) ratio of 19.29 and 3.05 as compared to other banks. ICICI Bank has highest yield ratio of 2.53 and SBI has highest earning per share (EPS) of 126.24 which is quite higher as compared to other banks. INDUSTRY OUTLOOK The banking industry in India seems to be unaffected from the global financial crises which started from U.S in the last quarter of 2008. Despite the fallout and nationalization of banks across developed economies, banks in India seems to be on the strong fundamental base and seems to be well insulated from the financial turbulence emerging from the western economies. The Indian banking industry is well placed as compare to their banking industries western counterparts which are depending upon government bailout and stimulus packages. The strong economic growth in the past, low defaulter ratio, absence of complex financial products, regular intervention by central bank, proactive adjustment of monetary policy and so called close banking culture has favoured the banking industry in India in recent global financial turmoil. The report Indian Banking Sector Forecast to 2012 contains comprehensive research and rational analysis on various segments, like assets size, income level and number of cardholders, in the Indian banking industry. It also analyzes the current performance and key market trends, and helps clients to understand various products available in the market and their future scope. 7. APPENDIX 7.1 International Conferences and Annual Meetings Global banking conference Retail bankers academy Conference on payment system in banks Emerging issues and opportunity conference for Indian banks First global conference on legal and accounting process outsourcing

Installation of ABC System at Super Bakery Inc - 949 Words

The ABCs of Doughnut Making: Super Bakery, Inc. was founded in 1990 by Franco Harris, former Pittsburgh Steelers running back. The company is a supplier of doughnuts enriched with minerals, vitamin, and protein as well other baked commodities to the primary school systems and institutional food market throughout the nation. Since its a virtual corporation, the core strategic functions of the business are carried out within the company. On the other hand, the other activities of Super Bakery, Inc. are outsourced to a network of external organizations. The business in turn organizes the work flow of and draws together the external companies in this process. This helps the company to add maximum value while making minimal investments in working capital, fixed assets, and permanent staff. The outsourcing to a network of other companies has enabled Super Bakery to increase its sales at average annual rate of 20 percent. Strategies Used By the Management of Super Bakery, Inc.: Based on the case, the management of Super Bakery, Inc. achieved success and profitability of the firm through two major ways. First, these executives only ensured that the only the core strategic functions of the organizations were conducted internally i.e. within the company. Secondly, other business functions like manufacturing, shipping, warehousing, and selling were outsourced to a network of external companies. The reason for the use of these two strategies was to minimize the expenditure rateShow MoreRelatedCost Accounting134556 Words   |  539 PagesContents Chapter 1 Cost Accounting: How Managers User Cost Accounting Information Chapter 15 Using Differential Analysis for Production Decisions Chapter 2 Cost Concepts and Behaviour Chapter 16 Managing Quality and Time Chapter 3 Cost System Design: An Overview Chapter 17 Planning and Budgeting Chapter 4 Job Costing Chapter 18 Flexible Budgeting and Performance Evaluation Chapter 5 Process Costing Chapter 19 Performance Evaluation: Cost Variances Chapter 6 SpoilageRead MoreMarketing Management 14th Edition Test Bank Kotler Test Bank173911 Words   |  696 Pagesrequirements are satisfied. A) Wants; needs B) Demands; wants C) Needs; wants D) Needs; demands E) Demands; needs Answer: C Page Ref: 9-10 Objective: 3 Difficulty: Easy 24) When Frank buys his own house, he would like to have a home theater system and a jacuzzi. He plans to save enough money in the next three years so that he can fulfill his wish. Franks desire for the home theater and the jacuzzi is an example of a(n) ________. A) need B) want C) demand D) unstated need E) latent demand Read MoreSwot Analysis25582 Words   |  103 Pagesextra, but only if the products come with the right look. It sounds like a good strategy but only a small percentage of consumers bought the Cafà © Series products just for the look. In reality the segment comprises 25- to 59-year-old consumers from the ABC socio-economic group. This segment is disenchanted with plastic appliances. While their purchases do represent socioeconomic aspiration, the latest fashion is less important than the benefits of long lasting, exceptionally performing appliances. OtherRead MoreMonsanto: Better Living Through Genetic Engineering96204 Words   |  385 Pagescommercial and social objectives C A S E N I N E From greenï ¬ eld to graduates: University of the Sunshine Coast C A S E T E N Whole Foods Market, 2005: Will there be enough organic food to satisfy the C A S E E L E V E N growing demand? Wal-Mart Stores Inc.: Dominating global retailing C A S E T W E L V E 14_Hanson_3ed_SB_3869_TXT.indd 441 8/29/07 1:09:33 PM 442 INTRODUCTION A SUMMARY OF THE CASE ANALYSIS PROCESS Case analysis is an essential part of a strategic management courseRead MoreOne Significant Change That Has Occurred in the World Between 1900 and 2005. Explain the Impact This Change Has Made on Our Lives and Why It Is an Important Change.163893 Words   |  656 PagesMcKeown 9 †¢ 2 Twentieth-Century Urbanization: In Search of an Urban Paradigm for an Urban World †¢ Howard Spodek 53 3 Women in the Twentieth-Century World Bonnie G. Smith 83 4 The Gendering of Human Rights in the International Systems of Law in the Twentieth Century †¢ Jean H. Quataert 116 5 The Impact of the Two World Wars in a Century of Violence †¢ John H. Morrow Jr. 161 6 Locating the United States in Twentieth-Century World History †¢ Carl J. Guarneri 213

Focus Group Guide free essay sample

Lenora Lubega Introduction Hello, my name is Lenora Lubega and I would like to welcome all of you to our focus discussion group. I will be the moderator. Our purpose for meeting today is to discuss ‘hands-free’ cellular telephone use while driving in the State of Tennessee, and to get your feedback on how you feel about the driving while using a cellular device. This focus group’s intent is to openly and discuss the question: â€Å"Should the State of Tennessee require ‘hands-free’ cellular phone use in automobiles? Everyone here this evening is an automobile driver living in the State of Tennessee. This will be a short discussion that will require an hour and thirty minutes of your time to complete. Our time will be very limited; and we will not take a break. The restrooms are conveniently located at either end of the hall. I would like to remind you that this session is highly confidential. Once this session ends, no one’s name will be used in any way outside of this group. Everyone signed consent forms to participate in tonight’s discussion. If there is anyone here that has not signed a consent form, please do so before we began tonight’s discussion or you will not be allowed to participate in this discussion group. For transcription purposes of the discussion there will be an audio recording. I will listen to the recording and prepare my final summary of our focus group accordingly. This will be an informal discussion group. You are encouraged to ask any questions or make any comments that you feel are pertinent to our discussion. Please speak freely, and if anything is unclear, please ask. The intent of this focus group is to ask, listen, and observe. As stated in the consent, please keep everyone’s identities and response confidential once you leave the group. We want to encourage oneness and honesty for everyone involved. We will begin this discussion by finding out a little bit more about each another. If I could have everyone give their name or a nickname, your occupation, and the type of cell phone that you own. I will go first and we will proceed to my right. Data Collection Warm-up Discussion: If you could take out a piece of paper and write a short paragraph on an experience you have had in dealing with drivers who are distracted by the use of a cell phone. Next I will like to ask if you, yourself us a hands free device with your cell phone? Have you used any of the newer apps that allow you to talk and text? Is it burdensome or easy to do? Does your car have a synchronizing device? How often do you us it? Secondary Research: An estimated 3,092 traffic fatalities in 2010 were blamed on distracted drivers, according to the National Highway Traffic Safety Administration. More than one in six drivers send text messages while driving, and nearly half of drivers less than 25 years old are doing it, according to a NHTSA survey released last week. This is becoming the new DUI, said Robert Sumwalt, a member of the safety board. Its becoming an epidemic. The District of Columbia and 35 states ban text messaging for all drivers, according to the Governors Highway Safety Association. They should be made to us a hands free device or something of the like Tasha Fider: I would create a standardized audio output jack, not unlike the one available for iPods and iPhones today (which is actually a data jack), and mandate that all mobile phone manufacturers have it on each new phone that is created. Moreover, I would mandate that all future automobiles have a docking system that is adaptable to any kind of phone whatsoever. I would even mandate that current cars still on the line right now be fitted for such a docking system. I know it would be a hassle, and would put a few more dollars on everyones monthly car note, but I am considering the safety of our future. Anything that saves lives is worth the effort as well as the money invested into creating the technology. Renee Partida: my opinion is simple, there is no need to be using your cell phone whether text or calling or face booking while driving. I think people should us a hands-free devices they were made for that reason. I’ve seen too many people hurt while driving using their cell phones. I was in the car with a girl that dropped her’s and while driving tried to pick it up. Ruth Ellen Galgano: Once I was driving down 65 north bound and saw this lady on her phone. She was clam but as soon as the kids started fighting she became very distracted with driving. There are so many things that can and will distract driving we don’t need to have one more and cells phones are adding another problem to the long list that already exist. I would love to see the law changed on this issue. Jessica McClanahan I use to live in NY, all use of cell phones while driving is against the law including calling and text. I just honestly want to be allowed to slap idiots that know its against the law yet do so and I see them make several driving mistakes that only underage drivers should make like cutting someone off and not making a complete stop at stop signs. They should get their licenses revoked and cell phones stomped on! Tabitha Jerome: (She did not show up. We waited for ? hour but she never came) Specific Discussion Richard Johnson 1. How do you currently view driving while talking on the cell phone without a hands-free device? Yes, I was planning to by one but have not gotten around to it. 2. Does talking on a phone while driving seem safe, or can it lead to low driving performance? Not all the time. Why? When I am dialing the number I often find that I am not in my lane and have come very close to having an accident from time to time. Why not? 3. Of the different things involved with making or receiving a call, which task contributes most to bad driving? Making the call. You must look at the phone to dial the number and that causes your attention to be taken off the road. 4. Is it searching for the phone? Not for me, I often have my phone in the middle of the car. What about dialing? Yes, that is my biggest issue. Talking? No, I use speaker phone. Is it hanging up? No I simply let the other person hang up and my phone will hang up automattly. Or receiving the call? Sometime. 5. How do you feel the state of Tennessee should respond? Laws must be made and enforced. The issue is most driving laws are never enforced here. 6. Should the state mandate hands-free devices for driving? Why do you feel the way you do? Yes, but the phone companies need to do something to help with the cost to the customer. 7. Do you think a hands-free device would make a difference in road safety? Not really. How so? Most people will not use it if it is user friendly. Tasha Fider 1. How do you currently view driving while talking on the cell phone without a hands-free device? Dangerous 2. Does talking on a phone while driving seem safe, or can it lead to low driving performance? No *she did not give any more info, she did not seem to want to be here* 3. Of the different things involved with making or receiving a call, which task contributes most to bad driving? Both 4. Is it searching for the phone? Yes What about dialing? Yes, I think so. Talking? Yes, for sure. Is it hanging up? Yes it can be. Or receiving the call? No 5. How do you feel the state of Tennessee should respond? It is hard to say, I don’t agree with making laws to do so. We are force to do everything. I think we should be able to drive safe. 6. Should the state mandate hands-free devices for driving? Why do you feel the way you do? No they should not. I don’t like the government telling me what I can or cannot do. 7. Do you think a hands-free device would make a difference in road safety? How so? Yes, it could help but only if it is used. Renee Partida 1. How do you currently view driving while talking on the cell phone without a hands-free device? I view it as a health hazard 2. Does talking on a phone while driving seem safe, or can it lead to low driving performance? It is not safe. It can and has killed people and I think a person doing it should be charged with murder. It is not safe. Why? It kills. Why not? 3. Of the different things involved with making or receiving a call, which task contributes most to bad driving? Making the call, although, answering the phone can be just as dangerous. 4. Is it searching for the phone? Yes What about dialing? Yes Talking? Yes Is it hanging up? Yes Or receiving the call? Yes, all these things contribute to unsafe driving. 5. How do you feel the state of Tennessee should respond? Laws need to be enforced. 6. Should the state mandate hands-free devices for driving? Why do you feel the way you do? Yes they should. I hate to see people killed by stupid things people do that are so very avoidable. 7. Do you think a hands-free device would make a difference in road safety? How so? I do. If people use them the danger would be lessened. Ruth Ellen Galgano 1. How do you currently view driving while talking on the cell phone without a hands-free device? I find that if a person is responsible they can do it without any issues. The problem comes in when you have people who are not responsible. Most of the time, I find that people will do one of two things, ignore the call or take it. If they take it, they will cause an accident. 2. Does talking on a phone while driving seem safe, or can it lead to low driving performance? Why? Why not? It seems safe as long as the person is paying attention to the road and not the call. A lot of what we do on the phone is for fun, it is only when the call is serious that it can be a problem. Their attention is turned to the call and not the road. 3. Of the different things involved with making or receiving a call, which task contributes most to bad driving? I would have to say, making the call. 4. Is it searching for the phone? Not really What about dialing? Yes, that is the big problem. You cannot watch the road and dial a number at the same time. Talking? Not really. Is it hanging up? I don’t think so. Or receiving the call? It can really be hard to take a call while driving. Sometime the phone can fall on the floor of the car and you try to pick it up. 5. How do you feel the state of Tennessee should respond? I think we should allow people to do what’s right and not make any new laws at this time. Although the statistic show more people die from using the phone I think it would be safe if we just use caution. 6. Should the state mandate hands-free devices for driving? No Why do you feel the way you do? I just don’t like it when I am told, by law, what to do. 7. Do you think a hands-free device would make a difference in road safety? It might if the person uses. How so? If the person never uses it what would be the point? Jessica McClanahan 1. How do you currently view driving while talking on the cell phone without a hands-free device? It is a dangerous practice, to say the least. I know different states are different, but I think TN says it is not legal to do it without a hands-free device. 2. Does talking on a phone while driving seem safe, or can it lead to low driving performance? Why? Why not? It does not seem safe, and it can lead to low driving performance, since full attention is not given to all the hands and foot motion of driving (not to mention attention to the surroundings) 3. Of the different things involved with making or receiving a call, which task contributes most to bad driving? I think making a call contributes most to bad driving 4. Is it searching for the phone? What about dialing? Talking? Is it hanging up? Or receiving the call? Dialing 5. How do you feel the state of Tennessee should respond? The state should mandate mobile phone manufacturers to make a safety modification to all new phones 6. Should the state mandate hands-free devices for driving? Why do you feel the way you do? Yes. It should also impose stiff penalties for those who do not comply. The state is responsible for the safety of its citizens. 7. Do you think a hands-free device would make a difference in road safety? How so? Yes I do. It would save lives. Tabitha Jerome (She did not show up. We waited for ? hour but she never came) 1. How do you currently view driving while talking on the cell phone without a hands-free device? 2. Does talking on a phone while driving seem safe, or can it lead to low driving performance? Why? Why not? 3. Of the different things involved with making or receiving a call, which task contributes most to bad driving? 4. Is it searching for the phone? What about dialing? Talking? Is it hanging up? Or receiving the call? 5. How do you feel the state of Tennessee should respond? 6. Should the state mandate hands-free devices for driving? Why do you feel the way you do? 7. Do you think a hands-free device would make a difference in road safety? How so? Summary We are at the end of our discussion. Today we have shared our personal views in detail on this topic. With all our newly acquired information, together with our personal feelings, let us imagine the president of AAA entering this room. Let us each give 30 seconds of advice his company should consider regarding support of a law requiring hands-free devices for cell phones while driving in the state of Tennessee. If in favor of the law, state what elements of law you think should be included in the law and which should not. If opposed to the law, do likewise, and give personal reasons why. Now is your chance to make a big difference in something you believe in. Please write this brief statement to AAA. Include what you think of legislation and the specific elements of law that should be involved. If against it, please speak out. List reasons either way. This legislation could make all the difference for you or your family, so please answer honestly. Summary of Metting Our focus group was held at the La Vergne, TN public library. The date was Sunday, March 4, 2012 at 4 p. m. Most of the participants arrived on time, but one did not come at all. Another one arrived extremely late, and with an irritable attitude. Refreshments were served. Everyone seemed okay with the idea of being there, and light, friendly chit chatter occurred. The meeting was called to order, and everyone eagerly participated. Ideas flowed freely. There were opinions the entire spectrum. Some were in agreement with the state of Tennessee coming up with moderate laws governing cellular phone usage while driving. Others were diabolically opposed to the idea. One person became feisty and almost bellicose in her expression of her view. She said she had a real problem with the government trying to run her life. We all understood what she meant. When we were able to calm her down, the discussion continued without incident. Each person felt that something was needed but no one really could agree on what that â€Å"something† should be. It seems that much more discussion is needed on the topic. I would recommend that the state fund more groups meetings and have a smaller group to find a solution to the matter. It is my recommendation that we all meet again in a month to see if any opinions have changed. The meeting was closed, and everyone politely bid each other adieu, and we went home.

Nothing Essays (1070 words) - Real Estate, , Term Papers

Nothing A real estate investment trust, or REIT, is a company that buys, develops, manages and sells real estate assets. There are three types of REITs; they are equity REITs, mortgage REITs, and hybrid REITs. An equity REIT is a corporation that purchases, owns and manages real estate properties; it does not own or originate real estate loans. It may also develop properties. A mortgage REIT is a corporation that purchases, owns and manages real estate loans; it does not own real estate properties. It may or may not originate commercial and/or residential loans. A hybrid REIT is a corporation that purchases, owns and manages both real estate loans and real estate properties. It has the qualities of both an equity and mortgage REIT which is why it is referred to as a hybrid. One of the most distinguishing characteristics of a REIT is that they are required to distribute at least 95% of taxable income to shareholders. REITs allow participants to invest in a professionally-managed portfolio of real estate assets. This is important because prior to Congresss creation of REITs only extremely rich individuals were able to benefit from ventures in the real estate market. By pooling assets together in a manner similar to that of a mutual fund, REITs allow the everyday investor the chance to invest in real estate properties. The main benefit of a REIT is that it is exempt from double taxation. The normal corporation is taxed on earnings, and then when dividends are paid, the individual receiving the dividend is taxed. REITs can deduct dividends distributed from taxable income. This results in only one level of taxation. The main disadvantage of a REIT is that since nearly all earnings are distributed as dividends, the trust must find capital to reinvest into the business from other areas. These funds are usually raised by investments in the market, and through the capital gains realized from the sale of the REITs assets. The second method by which REITs procure capital to reinvest into the business raises an accounting issue regarding the classification of assets. Currently, the buildings and property that REITs utilize to raise income are classified as property, plant, and equipment. However, it can be argued that these assets should be classified as inventory. The accounting definition of property, plant, and equipment specifies those properties of a durable nature used in the regular operations of the business. These assets consist of physical property such as land, buildings, machinery, furniture, tools and wasting resources. With the exception of land, most assets are either depreciable (such as buildings) or consumable (such as timberlands). These properties do reasonably fall into this category, especially in the cases where the REIT is involved in managing the property and receives revenue from rents. The definition for inventory relates to asset items held for sale in the ordinary course of business or goods that will be used or consumed in the production of goods to be sold. It can also be reasonably justified that these assets fall into this category, this is the nature of REITs, to buy and sell real estate. This is a gray area in which reasonable people can disagree. It is my opinion that these assets should be classified according the companys honest intent for its use. Many REITs own and operate apartment complexes and have no intent to sell the property, but are content to manage the units and collect rent. In these types of cases the property is not being sold but leased. Therefore, PP&E would be the appropriate classification, similar to the method that car rental agencies use. But, if the company intends to improve and sell the property then the property should be inventory. This method would be similar to method by which securities investments are accounted for. Depending on the companys intent, securities can be classified as held-to-maturity, available for sale, or marketable securities. Since all these properties are currently classified as property, plant, and equipment, the issue of depreciation becomes important. If these properties were classified as inventory, then all maintenance and repairs would expensed as incurred, and no depreciation would be recognized. However, as property, plant, and equipment, maintenance and repairs would be capitalized and depreciation