Analysis on Deposits Schemes of Indusind Bank

8/10/2019 Analysis on Deposits Schemes of Indusind Bank

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DEPOSITS SCHEMES OF INDUSIND BANK

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JAIN UNIVERSITY Page 1

ABSTRACT

Theoretical knowledge without practical knowledge is of little value. In order to achieve

positive & concrete results along with theoretical concept the exposure of real life

situation existing in corporate is very much needed. To fulfill this need the management

course has a provision for the practical training program. I thank my institute to provide

us such opportunity having training period in our course so that students can have real

feeling of organization life.

I took my summer training in INDUSIND BANK Shimoga . It was my fortune to get

training in very healthy atmosphere. I got ample opportunity to views the overall working

of the indusInd bank. In the coming pages an attempt has been made to present a

comprehensive report is concerning different aspects.

The financial services sector and capital markets have a significant influence on how

Economies develop, principally through their role in allocating financial capital between

different economic activities, as well as through their own operations, not only do banks

Manage their own financial and sustainability performance, they are in a position to

influence Socio-economic and environmental performance in client organizations and

through their Depositing strategies. In this report, we examine whether and how banks

manage the corporate economic impacts of thiir core deposits activities.

The aim of this research is to explore whether banks account of the types of economic

Impacts arising from their deposit activities. It asks who the real beneficiaries of banks

deposit activity and whether banks take this into account in their core business decisions.

Specifically, it questions how some banks understand their economic impacts and

whether and how this informed the development and delivery of deposit products and

services. Accountability and BSR have developed a methodology through which

companies can begin to articulate and account for the economic impacts of their business


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activitiessitting, employment, Procurement, product and service development and

delivery, contribution to taxes, investment And Philanthropy.

This report focuses on the bank deposit sectors product Development and deliverybusiness function, and through this explores corporate understanding and accountability

of banks. As for all sectors, there is less data on productrelated impacts than other

aspects of business activity, which is a critical impact area for banks.

This study explores whether and how banks understand and manage the economic

impacts of their productsthrough product development, use and delivery of deposit

productson the communities that use them. This relates to both production-side impacts

might include the operations of bank branches, and might include employment, sourcing

form local suppliers and environmental impacts. While the impacts of these activities are

important, the most significant economic impacts are likely to accrue to customers and

the wider economy. Consumption-side economic impacts relate directly to the access to

finance debate, as well as questions that have arisen from whom bank take deposits. Most

attention on banks in this area has focused on project finance for large and

environmentally sensitive projects. Access to finance refers to the lack of availability to

finance to specific communities. These issues have largely defined the corporate

responsibility banks in the eyes of some major stake holders.

This report explores how some banks understand and account for their economic

contribution to society. For some, economic impact management is already an important

internal management tool and stakeholder engagement platform. For others, the value of

managing economic impact is clear, but the challenge is finding ways to do it, Ideally,

corporate management of economic impact allows company to better inform and engage

stakeholders on the broader debate on the role of the sector in society.


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The report examines what sustainability principles and standards mainstream banks have

adopted around the world, and the extent to which those standards capture the most

significant potential economic impacts of bank lending. The report sets out some of the

key framework issues and players driving banks to consider sustainability issues.

OBJECTIVE

The main objective of the study of the deposits schemes of the bank is to study what bank

provides to different type of customers as per their requirement in their deposits.

Because I was there in IndusInd Bank for 6 weeks and I saw different type of customers

there.

Businessman, employees, nri, students, senior citizens, and many more.

Some want fixed deposits, some wants services, some want more transactions intraday,

some want that to pick cash and deliver cash to their home as per their want. So this is

important in research study.

Significance

The significance of the study is that with this study I came to that what is actually going

in private sector banks and what is the difference in the services of private sector banks

and public sector banks, type of deposits and services and may more.

Scope

The scope of this study which is conducted by me is shimoga City. The method used by

me is pump late provided by bank and banks sitewww.indusindbank.com .
http://www.indusindbank.com/http://www.indusindbank.com/http://www.indusindbank.com/


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RECOMMENDATIONS

There should be system like in foreign countries that employee on every counter

can deal with every customer, that is he can take deposit from him he cashed his

cheque.

Bank should increase in number of branches in all over India.

Number of ATM should be increased.

Number of employees for banking operation should be increased.

There should be more advertisement of the bank, because mostly people are not

aware about the name of the bank.

Bank should use some promotional strategies.

Area of the branch should be wide.


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Chapter -1:-


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Closure of Accounts

When the account is closed the amount is paid by cash or credited to the account of the

depositor. Repayment of deposits with maturity value above Rs.20,000/- shall be made

by credit to an account or by an account payee cheque (as per law).

Deposit schemes

A deposit account is a current account, savings account, or other type of bank account, at

a banking institution that allows money to be deposited and withdrawn by the account

holder. These transactions are recorded on the banks books, and the resulting balance is

recorded as a liability for the bank, and represent the amount owed by the bank to the

customer. Some banks charge a fee for this service, while others may pay the customer

interest on the funds deposited.

Major types

Savings accounts: Accounts maintained by retail bank that pay interest but cannot

be used directly as money (for example, by writing a cheque). Although not as

convenient to use as checking accounts, these accounts let customers keep liquid

assets while still earning a monetary return.

Money market deposit account: A deposit account with a relatively high rate of

interest, and sort notice (or no notice) required for withdrawals. In the United

States, it is a style of instant access deposit subject to federal savings account

regulations, such as a monthly transaction limit.

Time deposit: A money deposit at a banking institution that cannot be withdrawn

for a preset fixed term or period of time. When the term is over it can be

withdrawn or it can be rolled over for another term. Generally speaking, the longer

the term the better the yield on the money.

Current account:This account is mainly for business class people. The main

benefit of this account is that the account holder can make transactions in his/her


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account as many time as he want. No limit on the transactions. Like is on saving

account. And interest is provided on this account. Overdraft limit is also available

on this account.

Flexi/sweep account:Now after looking at the western countries of the depositsIndian banks starts this account. On this account holder get the benefit of saving

and fixed account. In this account holder can specify to his bank that this much

amount he want to maintain in saving account and above that limit his money

should be transferred to fixed deposit account. But the main benefit of this account

is that holder can withdraw any money that want to withdraw. And this facility is

not available in fixed deposit account.


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Chapter - 2:-


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INDUSTRY AND COMPANY PROFILE

HISTORY OF BANKI NG COMPANI ES

The bank is being used since long time. But there is not clear conception regarding its

beginning days. According to once view point in good old days Italiyan money lender

were known as Banechi or Banecheri because those people kept a special type of table to

transact their business called Banchi. Origin of the word bank belongs to the world

Banchi or to the greek work Banque. Both these words refers to same kind of banking.

Casa De San Giorgio was the first bank to be established in 1148. The first public sector

bank Venice. It was established I 1157.

The banking Companies Act, 1949 was passed to consolidate (combine) and amend he

law relating to banking companies. The need for this was felt owing partly to the abuse of

powers by persons controlling some banks and the absence to measures for safeguarding

the interests of depositors of bankig companies in particulars and partly to the economic

interests of the country in general.

It must, however be added that the provisions of the act are in addition to, and not, asve

as expressly provided, in derogation of the Companies Act, 1956 and other law for thetime being in force (section 2). For instance, section 11(1) of the Companies Act, 1956

which lays down that no company association or partnership consisting of more then

persons shall be formed for the purposes of carrying on the business of banking, unless it

is registered as a company, is still applicable, although there is no such provision in the

Banking Regulation Act, it must be addedthat the Act deals with banking companies and

corporations and does not purport to codify the law of banking. It is mainly a regulatory

act, meant to regulate the functioning of banking companies and corporations.


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Banking structure in INDI A

Banking in India originated in the last decades of the 18th

century. The oldest bank in

existence in india is the State Bank of India, a government-owned bank that traces its

origins back to June 1806 and the is the largest commercial bank in the country. Central

banking is the responsibility from the then Imperial Bank of India, relegating it tocommercial banking functions. After Indias independence in 1947, the Reserve Bank

was nationalized and given broader powers. In 1969 the government nationalized the 14

largest commercial banks, the government nationalized the six next largest in 1980.


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Currently, India has 88 schedule commercial banks (SCBs)27 public sector banks (that

is with the Government of India holding a stake), 31 private banks (these do not have

government stake, they may be publicly listed and traded on stock exchanges) and 38

foreign banks. They have acombined network of over 53,000 branches and 17,000ATMs. 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.

Early history of banking in INDI A

Banking in India originated in the last decades of the 18 century. The first banks were

The General Bank of India with started in 1786, and the Bank of Hindustan, both of

which are now defunct. The oldest bank in existence in India is the State Bank of India,

which originated in the Bank of Calcutta in June 1806, which almost immediately

became the Bank of Bengal. This was one of the three presidency banks, the other two

being the Bank of Bombay and the Bank of Madras, all three of which were established

under charters from the British East India Company. From many years the Presidency

banks acted as quasi-central banks, as did their successors. The three banks merged in

1925 to form the Imperial Bank of India, which, upon Indias independence, became theState Bank of India.

Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 ,

but it failed in 1848 as a consequence to the economic crisis of 184849. The Allahabad

Bank, established in 1865 and still functioning today, is the oldest Joint Stock Bank in

India. It was not the first though. That honor belongs to the bank of Upper of India, which

was established in 1863, and which survived until 1913, when it faild, with some of its

assets and liabilities being transferred to the Alliance Bank of Simla.

When the American Civil War stopped the supply of cotton to Lancashire from the

Confederate States, promoters opened banks to finance trading in Indian Cotton. With

large exposure to speculative ventures, most of the banks opened in India during that


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period failed the depositors lost money and lost interest in keeping deposits with banks.

Subsequently, banking in India remained the exclusive domain of Europeans for next

several decades until the beginning of the 20thcentury.

Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire

dEscompte De Paris opened a branch in Calcuttain 1860, and another in Bombay in

1862, branches in Madras and Pondichery, then a French colony, followed. HSBC

established itself inBengal in 1869. Calcutta was the most active trading port in India,

mainly due to the trade of the British Empire, and so became a banking center.

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

The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in

1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established

in Lahore in 1895, which has survived to the present and is now one of the largest banks

in India.

Around the turn of the 20thcentury, the Indian economy was passing through a relative

period of stability. Around five decades had elapsed since the Indian Mutiny, and the

social, industrial and other infrastructure had improved. Indians had established small

banks, most of which served particular ethnic and religious communities.

The presidency banks dominated banking in India by there were also some exchange

banks and a number of Indian joint stack banks. All these banks operated in different

segments of the economy. The exchange banks, mostly owned by Europeans,

concentrated on facing foreign trade. Indian joint stock banks were generally under

capitalized and lacked the experience and maturity to compete with the presidency and

exchange banks. This segmentation let Lord Curzon to observe.

The period between 1906 and 1911, saw the establishment of banks inspired by the

Swadeshi movement. The Swadeshi movement inspired local businessmen and political

figures to found banks of and for the Indian community. A number of banks established


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then have survived to the present such as Bank of India, Corporation Bank, Bank of

Baroda, Canara Bank and Central Bank of India.

The fervor of Swadeshi movement lead to establishing of many private banks in

Dakshina Kannada and Udupi District which were unified earlier and known by the name

South Canara (south Kanara) district. Four nationalized banks started in this district and

also a leading private sector bank. Hence undivided Dakshina Kannada district is known

as Cradle of Indian Banking.

From World War to I ndependence

The period during the First World War (1914-1918) through the end of the Second World

War (1939-1945), and two years thereafter until the independence of India were

challenging for Indian banking. The years of the First World War were turbulent, and it

took its toll with banks simply collapsing despite the Indian Economy gaining indirect

boost due to warrelated economic activities. At least 94 banks in India failed between

1913 and 1918 as indicated in the following table:

Years Numbers of Banks that

Failed

Authorized Capital (Rs.

Lakhs)

Paid

Up Capital (Rs.

Lakhs)

1913 12 274 35

1914 42 710 109

1915 11 56 5

1916 13 231 4

1917 9 76 25

1918 7 209 1

Post-independence

The partition of India in 1947 adversely impacted the economies of Punjab and West

Bengal, paralyzing banking activities for months. Indias 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


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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, Indias central banking authority, was nationalized,

and it became an institution owned by Government of India.

In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of

India (RBI) to regulate, control, and inspect the banks in India.

The Banking Regulation Act also provided that no new bank or branch of an existing

bank could be opened with a license from the RBI, and no two banks could have common

directors.

However, despite these provisions, control and regulations, banks in India except the

State Bank of India, continued to be owned and operated by private persons. This

changed with the nationalization of major banks in India on July, 1969.

Nationalization

By the 1960s, the Indian banking industry has become an important tool to facilitate the

development of the Indian economy. At the same time, it has emerged as a large

employer, and a debate has ensued about the possibility to 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 Nationalization. The paper was received with positive

enthusiasm. Thereafter, her move was swift and sudden, and the GOI issued an ordinance

and nationalized the 14 largest commercial banks with effect from the midnight of July19, 1969. Jayaprakash Narayan, a national leader of India, described the step as a

masterstroke of Political Sagacity. Within two weeks of the issue of the ordinance, the

Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking)

Bill, and it received the presidential approval on 9 August, 1969.


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A second dose of nationalization of 6 more commercial banks followed in 1980. The

stated reason for the nationalization was to give the government more control of credit

delivery with the second dose national, the GOI controlled around 91% of the banking

business of India. Later on, in the year 1993, the government merged New Bank of Indiawith Punjab National Bank. It was the only merger between nationalized banks and

resulted in the reduction of the number of nationalized banks from 20 to 19. 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.

Liberalization

in the early 1990s, the then Narsimha Roa government embarked on a policy of

liberalization , licensing a small number of private banks . these came to be known as

new generation techsavvy bank , and included global trust bank ( the first of such new

generation banks to set up ) which later amalgamated with oriental bank of commerce ,

axis bank ( earlier as uti bank ),icici bank and hdfc bank .this move along with the rapid

growth in the economy of india . revitalizedthe banking sector in india , which has seen

rapid growth with strong contribution from all the three sectors of banks,namely,

government banks , private banks anf foreign banks .

Banks and their growth rate

Private banks growth in assets ,deposits and advance vis--vis PSBs and foreign

banks is significantly higher over a period of five years between 2001-02 to 2005 -

06 .

Private banks recorded a compounded annual growth rate (CAGR) of 18.6% in

total assets while total deposits and advances grew 24.19% and 24.29%respectively .

In the case of PSBs the CAGR of total assets , deposits and advances was 10.92%

, 10.53% , and 17.04 % respectively .


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For foreign banks , total assets , deposits and advances grew at CAGR of 16.09% ,

16.2 % and 17.02 % respectively .

The higher growth rates among private banks is partly explained by the base

effects as well as by the greater lending opportunities in the consumer loansegment , support by the rapid roll-out of a panindia branch network and equity

infusions to fund the growth .

Ananda bhoumik senior director , fitch ratings india said .

Indias largest private sector bank ,ICICIbank showed a 19.15% CAGR of

advances during the study period .

On the other hand SBI , the largest commercial bank also showed a 7.22 % CAGR

of total assets as against 7.03 % and 16.71 % o deposits and advances

respectively during the last five years .

But Citibank N.A , the largest foreign bank in terms of deposits showed a 16.6 %

CAGR of total assets as against 12.86% and 16.52% of deposits and advances

respectively bw 200102 to 2005-06 .

In actual value terms, the total assets of 20 private sector banks steadily climbed

up from rs 2,32,697 crore in the same period .

The total advances of these banks also saw a forward momentum from rs 1,37,405

crore to rs 4,05,920 crore in the same period .

Among the 20 private banks , the highest CAGR in total assets was seen in kotak

Mahindra bank (47.35%) followed by UTI bank (28.19) and HDFC bank (25.31%)

.

The total asstes of kotak Mahindra bank steadily rose from 1464.63 crore in 2001 -

02 to 10,175.11 crore in 2005-06 . similarly in the case of foreign banks , the

highest CAGR in total assets was seen Barclays bank (33.99%) and ABN bank

NV (25.89%).


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MAJOR BANKS IN INDIA:-

1.

Allahabad Bank

2.

Hsbc bank

3.

Bank of Baroda

4.

Bank of India

5.

Bank of Maharashtra6.

Citi bank

7.

Canara Bank

8.

State Bank of India

9.

Icici bank

10.State Bank of Hyderabad

11.

State Bank of Mysore

12.

Dena Bank

13.

IDBI Bank

14.

Indian Bank

15.

Indian Overseas Bank
http://en.wikipedia.org/wiki/Allahabad_Bankhttp://en.wikipedia.org/wiki/Bank_of_Barodahttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Maharashtrahttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/State_Bank_of_Hyderabadhttp://en.wikipedia.org/wiki/State_Bank_of_Hyderabadhttp://en.wikipedia.org/wiki/State_Bank_of_Mysorehttp://en.wikipedia.org/wiki/State_Bank_of_Mysorehttp://en.wikipedia.org/wiki/Dena_Bankhttp://en.wikipedia.org/wiki/Dena_Bankhttp://en.wikipedia.org/wiki/IDBI_Bankhttp://en.wikipedia.org/wiki/IDBI_Bankhttp://en.wikipedia.org/wiki/Indian_Bankhttp://en.wikipedia.org/wiki/Indian_Bankhttp://en.wikipedia.org/wiki/Indian_Overseas_Bankhttp://en.wikipedia.org/wiki/Indian_Overseas_Bankhttp://en.wikipedia.org/wiki/Indian_Overseas_Bankhttp://en.wikipedia.org/wiki/Indian_Bankhttp://en.wikipedia.org/wiki/IDBI_Bankhttp://en.wikipedia.org/wiki/Dena_Bankhttp://en.wikipedia.org/wiki/State_Bank_of_Mysorehttp://en.wikipedia.org/wiki/State_Bank_of_Hyderabadhttp://en.wikipedia.org/wiki/State_Bank_of_Indiahttp://en.wikipedia.org/wiki/Canara_Bankhttp://en.wikipedia.org/wiki/Bank_of_Maharashtrahttp://en.wikipedia.org/wiki/Bank_of_Indiahttp://en.wikipedia.org/wiki/Bank_of_Barodahttp://en.wikipedia.org/wiki/Allahabad_Bank


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MARKET SHARE OF BANKS 2013:-

At a recent event to open a branch of Kotak Mahindra Bank in Mumbai, the

lender's founder Uday Kotak summed up the challenges facing the Indian banking

sector in the shortest possible way: "In a bank's balance sheet, liabilities are

actually assets and assets are liabilities." He then explained his statement. A bank

lists the current and savings account deposits as liabilities on its balance sheet.

These low-cost deposits are helping banks maintain a healthy margin in the current

worsening economic scenario. On the assets side of the balance sheet are corporate

and retail loans that earn interest for banks. But, with many borrowers unable to

repay, these assets are turning into liabilities.

Indian banks have a lot of things going against them currently, from a slowing

economy and rising loan defaults to allegations of money laundering. A few banks

have, however, faced the headwinds strongly.

After a gap of five years,HDFC Bank has emerged as the best large bank because

of good asset quality, high loan growth, a healthy capital adequacy ratio and an

improvement in returns on capital employed. YES Bank remains the best mid-

sized bank for the second year running.

For other banks, challenges are only multiplying. Theasset quality of banks has

been deteriorating for the past two years as economic growth slipped to its lowest

level in a decade while inflation and interest rates remained high. Gross bad loans

have spiked to nearly four per cent of total lending from 2.36 per centthree years

ago. The Reserve Bank of India estimates gross bad loans to touch 4.4 per cent by

the end of the current fiscal year. Bank (PNB), Central Bank of India and Allahabad Bank all have outstanding

restructured assets at more than 10 per cent.
http://businesstoday.intoday.in/video/hdfc-bank-aditya-puri-on-rural-banking-scope-future/1/200718.htmlhttp://businesstoday.intoday.in/video/hsbc-india-ceo-stuart-milne-on-bank-focus-on-asset-quality/1/200720.htmlhttp://businesstoday.intoday.in/video/hsbc-india-ceo-stuart-milne-on-bank-focus-on-asset-quality/1/200720.htmlhttp://businesstoday.intoday.in/video/hdfc-bank-aditya-puri-on-rural-banking-scope-future/1/200718.html


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The capital adequacy ratio at many state-run banks such as PNB, Bank of India,

Andhra Bank and Union Bank of India is closer to the RBI's minimum norm of

nine per cent. This leaves them with little room to breathe easy.

Banks such as Federal Bank, South Indian Bank and City Union Bank are losingout inmarket share to their new age counterparts in the private sector, said a study

which alsonamed ICICI Bank and SBI as the best banks in their respective

categories.

Source Google images

.However, old-time private sector banks continue to fare better in the growth of

net profits, said research company Dun & Bradstreets report on Indias top

banks.

The D&B report has found that public sector banks accounted for 74 per cent of

total deposits, 73 per cent of total advances and 64 per cent of aggregate net profits

among the scheduled commercial banks. On the other hand, the share of new age

private sector banks was in the range of 15-17 per cent, it said.

The D&B report said the annual growth rate of old-time private sector banks stood

at 7.1 per cent in assets, six per cent in deposits and 12 per cent in advances.


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Banks such as Federal Bank, South Indian Bank, City Union Bank and Karnataka

Bank are old-time private sector banks, while ICICI Bank, HDFC Bank and Axis

Bank are the new-age banks.

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

39.9 per cent, there port said.

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

stood at an average 30%.


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COMPANY PROFILE

IndusInd Bank Limitedis aMumbaibased Indian new generation bank, established in

1994. The bank offers commercial, transactional and electronic banking products

and services .

Indusind Bank was inaugurated in April 1994 by then Union Finance

MinisterManmohan Singh.Indusind Bank is the first among the new-generation private

banks in India.

The bank started its operations with a capital amount of Rs. 1 billion among which Rs.

600 million was donated by the Indian Residents and Rs. 400 million was raised by the

Non-Resident Indians. The bank has specialized in retail banking services andcontinuously upgrades its support systems by introducing newer technologies. It is also

working on expanding its network of branches all across the country along with meeting

the global benchmark. According to the bank, its name is derived from the rich and

vividIndus Valley Civilisation.

IndusInd Bank has 638 branches, and 1238 ATMs spread across 392 geographic

locations of the country as on 30 September 2013 with 2 representative offices, one each

in London and Dubai.Mumbaihas the maximum number of bank branches followed

byNew DelhiandChennai.The bank has also proposed to double the branches count to

1200 by March 2017.
http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Manmohan_Singhhttp://en.wikipedia.org/wiki/Manmohan_Singhhttp://en.wikipedia.org/wiki/Manmohan_Singhhttp://en.wikipedia.org/wiki/Indus_Valley_Civilisationhttp://en.wikipedia.org/wiki/Indus_Valley_Civilisationhttp://en.wikipedia.org/wiki/Indus_Valley_Civilisationhttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/Chennaihttp://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indus_Valley_Civilisationhttp://en.wikipedia.org/wiki/Manmohan_Singhhttp://en.wikipedia.org/wiki/Mumbai


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VISION

IndusInd Bank (we) will be:

A relevant business and banking partner to our clients

Customer Responsive, striving at all times to collaborate with clients in providing

solutions for their banking needs

A forerunner in the market place in terms of profitability, productivity and

efficiency

Engaged with all our stakeholders and will deliver sustainable and compliant

returns.

MISSION

We will consistently add value to all our stakeholders and emerge as the best-in-class in

the chosen parameters amongst the comity of banks, by doubling our profits, clients and

branches within the next three years.


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OBJECTIVE

Total consumer focus in all operational areas.

World class technology.

Faith in individual potential & respect for human values.

Encouraging innovation for constant improvement to achieve excellence in all

functional areas.


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BOARD OF DIRECTORS

Mr. R. SeshasayeeChairman

Mr. R. Seshasayee, is a Chartered Accountant, who has been Managing Director of

Ashok Leyland Ltd. since 1998 and is now the Non-executive Vice Chairman of Ashok

Leyland effective from 1.4.2011. He had held Directorship of ICICI Bank Ltd. from May

6, 1997 to October 31, 2003. During that tenure, he also held the position of Chairman of

the Audit Committee of the Board. Mr. Seshasayee has also been member of various

Committees of the Society of Indian Automobile Industries. Mr. Seshasayee is Past

President of the Confederation of Indian Industry.


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Mr. Romesh SobtiManaging Director

Mr. Romesh Sobti has joined the Bank as Managing Director & CEO, taking charge from

Mr. Bhaskar Ghose. Prior to this assignment, Mr. Sobti was the Executive Vice President

Country Executive, India and Head, UAE and Sub-Continent, at ABN AMRO Bank

N.V. He joined ABN AMRO in November 1990 and graduated from the position of a

Chief Manager to the CountryExecutive over a period of 18 years. In his banking career

spanning 33 years, Mr. Sobti has been associated with ANZ Grindlays Bank Plc (now

Standard Chartered Bank) and State Bank of India in the past. He holds a Bachelors

Degree (Honours) in Electrical Engineering and has also done his diploma in Corporate

Laws and Practice and Secretarial Practice.


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Mr. Y. M. KaleAlternate Director

Mr. Y. M. Kale, FCA (England & Wales) & FCA (India), was President of the Institute

of Chartered Accountants of India (ICAI) during 1995 to 1996 and Chairman of ICAIs

Accounting Standards Board as well as Audit Practices Committee in earlier years,

having been on the apex ICAI Council for 16 years (1982 to 1998). During 1995-98, Mr.

Kale was the India Representative in the Board of International Accounting Standards.

Since 2002, Mr. Kale is Group President, Corporate Governance & Development in

Hinduja Group India Ltd. and a director in several group companies. RBI had appointedhim as the Member of the Group for the introduction of Concurrent Audit of Banks as

well as the Member of DBOD Working Group on Revised Formats for Published

Accounts of Banks. He has also served on many Committees constituted by SEBI and by

the Government of India. He was also Chairman of a Committee for setting Accounting

Norms for trading members of the National Stock Exchange.

.

DIRECTORS' REPORT: 201314


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The Bank's Directors have pleasure in presenting the Twentieth Annual Report covering

business and operations of the Bank, together with the audited financial accounts for the

year ended March 31, 2014.

Despite the deceleration in growth rate in the Indian economy and a challengingmacroeconomic environment, the Bank's deposits grew during the year by 11.80% and

advances increased by 24.33%.

The focus during the year continued to be on increasing earnings from core banking

business, and on strengthening the fee income streams.

Operating Profit (before Depreciation and Provisions and Contingencies) during the year

under review rose by 40.84% to Rs. 2,694.11 crores, from the level of Rs. 1,912.89 crores

in the previous year.

The Bank's Net Profit, after considering necessary Provisions and Contingencies and all

expenses, was higher by 32.68% at Rs. 1,408.02 crores as against Rs. 1,061.18 crores in

the previous year.

Dividend

The Earning per Share (EPS) of the Bank has risen to Rs. 26.85 during the year 201314,

from Rs. 21.83 in the previous year.

Considering the overall improvement in performance, the Directors recommend Dividend

of Rs. 3.50 per equity share of Rs. 10/each for the year ended March 31, 2014.

(Dividend for the year 201213 was Rs. 3.00 per equity share of Rs. 10/each).

The Bank shall pay tax on the amount of Dividend paid, which will be taxfree in the

hands of the shareholders

Financial Performance

The operating environment in the Indian economy witnessed significant turbulence

throughout the year, incorporating worsening liquidity conditions and inflationary

pressures coupled with volatility incurrency exchangerates. During the year, RBI

increased Repo Rate to 8.00% from 7.50% and CRR was kept constant at 4.00%.
http://profit.ndtv.com/stock/indusind-bank-ltd_indusindbk/reports-directors-reporthttp://profit.ndtv.com/stock/indusind-bank-ltd_indusindbk/reports-directors-reporthttp://profit.ndtv.com/stock/indusind-bank-ltd_indusindbk/reports-directors-report


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During the year 201314, the Bank continued to leverage its business on the three

performance planks of Productivity, Profitability and Efficiency and focused on

scalability, which helped to significantly improve its profitability.

The Bank's Total Income grew by 21.54% to Rs. 10,144.06 crores from Rs. 8,346.19crores, backed by improved business.

The sharp rise in profitability was the result of a healthy increase in core earnings of the

Bank through Net Interest Income (NII) and robust growth in NonInterest Income

streams. Net Interest Income improved by 29.46% to Rs. 2,890.71 crores from Rs.

2,232.86 crores while NonInterest Income rose to Rs. 1,890.53 crores from Rs. 1,362.96

crores, a rise of 38.71%.

The year 201314 has been one of sustained hardening of interest rates and shrinking of

lending margins. The Yield on Advances dropped marginally to 13.56% during the year,

the Cost of Deposits reduced to 8.17% as against 8.49% in the previous year (decrease of

32 basis points). The Net Interest Margin (NIM) increased to 3.71% during the year, as

compared with 3.43% in 201213, owing to reduction in the total cost of funds.

Fee and Miscellaneous Income at Rs. 1,890.53 crores showed sustained annual growth.

Core Fee Income such as Commission, Exchange, Fees on distribution of thirdparty

products and earnings from foreign exchange business, etc. grew by 29.89% to Rs.

1,609.72 crores from the level of Rs. 1,239.34 crores last year.

The Bank expanded its branch network rapidly to reach 602 branches, as against 500

branches at the beginning of the year. Revenue per employee during the year remained

steady at Rs. 31lakhs.

Quality of the Bank's assets remained stable, with Net NonPerforming Assets (Net

NPAs) at 0.33% as at March 31, 2014 from 0.31% last year. The Provisioning Coverage

Ratio (PCR) stood at 70.35%, as compared to 70.13% in the previous year.

On the liabilities side, the emphasis continued to be on broadbasing the deposit franchise.

This task was accomplished by leveraging the expanded branch network and the pan

India marketing setup, offering innovative products and service propositions, sustained


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promotional campaigns, and enabling customers with alternate channels like ATMs,

Internet Banking, etc.

The Bank introduced several new products and

services

for its chosen client segments through its Transaction Banking Group and Global

Markets Group. Deeper understanding of client requirements and the ability to put

technology to efficient use formed the bedrock on which new products and service

propositions were created.

The Bank kept up its focus on deepening as well as strengthening the feebased income

streams, resulting in a smart growth in noninterest income. Going forward, the Bankplans to upscale the growth momentum through further enhancements in diverse revenue

streams such as Foreign Exchange business, Investment Banking, structured Trade and

Treasury products, distribution of third party products like Mutual Funds and Insurance,

international remittances, Bullion operations and Transaction Banking activities,

including the Depository business and the Commodity Market business.

Share Capital

During the year under review, the Bank allotted 27,68,778 shares pursuant to the exerciseof Options under its Employees Stock Option Scheme, 2007.

Pursuant to the above, the Paidup Share Capital and Share Premium Account increased

by Rs. 2.77 crores and Rs. 32.39 crores respectively.

As at March 31, 2014, the Paidup Equity Capital of the Bank consisted of 52,54,46,484

shares of Rs. 10/each, excluding forfeited shares.

Tier II Capital

The Bank did not raise any Tier II Capital during the year.

Subsidiary Company

ALF Insurance Services Pvt. Ltd., the Bank's subsidiary company which was set up to do

the business of Insurance Corporate Broking, is currently under voluntarily winding up,

and the process is expected to be completed soon.


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Directors

Mr. Ajay Hinduja, Nonexecutive Director, retires by rotation, and being eligible

offers himself for reappointment.

Mr. T. Anantha Narayanan was appointed "Additional Director" in the category of

"NonExecutive Independent" by the Board at its meeting held on March 25, 2014, and

shall hold office up to the date of the ensuing Annual General Meeting (AGM).

Upon implementation of the Companies Act, 2013 w.e.f. April 1, 2014, it is required to

obtain approval of the shareholders for appointment of all the Independent Directors, viz.,

Mr. S.C. Tripathi, Mr. Ashok Kini, Mrs. Kanchan Chitale, Mr. Vijay Vaid and Mr. T.

Anantha Narayanan, at the ensuing AGM.

Dr. T. T. Ram Mohan, who was associated with the Bank as "Independent Director"since January 16, 2006, ceased to hold office w.e.f. January 16, 2014, on completion of

the maximum permissible tenure of 8 years laid down in Section 10A(2A) (i) of the

Banking Regulation Act, 1949.

The Directors wish to place on record their sincere appreciation for the valuable

contributions made by Dr. T. T. Ram Mohan towards the deliberations in the Board

Meetings during his tenure as Director of the Bank.

Mr. R. S. Sharma, who was associated with the Bank as "Independent Director" since

April 19, 2012, expressed his desire to step down from the Board owing to professional

preoccupations. Mr. Sharma's resignation was accepted by the Board on August 7, 2013.

The Directors wish to place on record their sincere appreciation for the valuable

contributions made by Mr. Sharma towards the deliberations in the Board Meetings

during his tenure as Director of the Bank.

Mr. R. Seshasayee, ChairmanMembers of the Bank had, in the 19th Annual General

Meeting held on June 28, 2013, approved the reappointment of Mr. R. Seshasayee as

Parttime Nonexecutive Chairman for a period of two years, w.e.f. July 24, 2013,

subject to approval of Reserve Bank of India (RBI).


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RBI have since approved the reappointment of Mr. R. Seshasayee for a period of two

years w.e.f. July 24, 2013.

Mr. Romesh Sobti, Managing Director & CEOMembers of the Bank had, in the

19th Annual General Meeting held on June 28, 2013, approved the reappointment ofMr. Romesh Sobti as Managing Director & CEO for a period of three years w.e.f.

February 1, 2014, subject to approval of RBI.

RBI have since approved the reappointment of Mr. Romesh Sobti as Managing Director

& CEO of the Bank for a period of one year w.e.f. February 1, 2014.

Brief profiles of the Directors seeking appointment / reappointment at the ensuing AGM

have been furnished in the Report on Corporate Governance under the section titled

"Board of Directors".

Auditors

M/s B S R & Co. LLP, Chartered Accountants, Statutory Auditors, who have audited the

accounts of the Bank for the year 201314, shall retire at the conclusion of the ensuing

Annual General Meeting and are eligible for reappointment.

Members are requested to consider their reappointment and to authorise the Board to fix

their remuneration. Reappointment of the Statutory Auditors is subject to approval of

the Reserve Bank of India, which has been received.

Independent Auditor's Report

M/s B S R & Co. LLP, Chartered Accountants, have audited the accounts of the Bank for

the year 201314, and their Report is annexed. There are no qualifications in the

Auditor's Report.

Statutory Disclosures

Information, wherever required under the Banking Regulation Act, 1949 or the

Companies Act, 1956 as applicable to a banking company, has been laid out in the

schedules attached and forms part of the Balance Sheet and the Profit and Loss Account.


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Types of deposits in IndusInd Bank

SAVING

NRI

CURRENT

FIXED DEPOSIT

PRIVELIGE

CLASSIC

NO FRILL

DEMAT

SWEEP

NRO

NRE


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Product range or deposits Scheme Of IndusInd Bank

INDUS YOUNG SAVER

Specially designed to

build and secure your childs future
http://www.indusind.com/downloads/YoungSaver.pdfhttp://www.indusind.com/downloads/YoungSaver.pdfhttp://www.indusind.com/downloads/YoungSaver.pdfhttp://www.indusind.com/downloads/YoungSaver.pdfhttp://www.indusind.com/downloads/YoungSaver.pdfhttp://www.indusind.com/downloads/YoungSaver.pdf


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At IndusInd Bank, we understand your varied needs as a parentgetting the best

education for your children,savings for their future, ensuring their good health and habits

you always wish you had the time and resources to give them the best they deserve.

As a Bank we feel a strong responsibility in securing your financial futurenot just by

offering you a portfolio of savings and investment solutions for your family, but by also

bringing to you a treasure-chest of knowledge-based solutions to help your children

learn smartly and sow the seeds of intellectual wealth.

Knowledge is Wealth

Towards this end, we have tied-up with Educational Initiatives (EI), Indias leading

educational diagnostic tests provider for students in classes 3 to 10. EI is an educational

research and services organization working with more than 2 lakh school children

annually, providing strength/weakness analysis at a subject/skill level, benchmarking

with other students nationally and delivering online improvement programs that your

child can avail of as per his/her convenience and need.

For our privileged customers, IndusInd and EI bring the following attractive

offers:

Free ASSET Online Test Skill-Based Diagnostic Test:


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ASSET Online is a special test which helps students improve. Unlike regular tests which

merely try to find out how much a child can reproduce (or has memorized), this test

measures how well a student has understood concepts and gives detailed feedback on the

same, including comparisons with peers to help him/her improve. The test is available

online and can be takenby students of classes 3-10 in Maths, Science and English.

Special Discount of Mind spark - Digital Adaptive Learning Solution:

Mind spark is a computer based self-learning program that helps the child hone his/her

skills in Maths. Through an intelligent program logic, it allows each student to follow a

learning path that is based on his/her specific need- at a pace he/she is comfortable with.

The interactive interface ensures that the student learns actively by answering questions

of progressively increasing complexity levels and not by passively listening to someone,

or viewing ready-made solutions.

REGULAR SAVINGS


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IndusInd Bank extends Savings Bank Accountwith various facilities

Monthly Balance

Rs.5000/- in case of A class cities, Rs.3000/- in case of B class towns and Rs.1500/- in

case of C class towns

Multicity Operation

Customer would be able to operate the account from any of our branches directly

Statements

Statement of Accounts will be provided at quarterly intervals

Debit Card

International Debit Card will be issued to the customer at reasonable chargesAccess to

1700 ATMs under bilateral arrangements with free of charges

Internet Banking

Access to Internet banking is allowed free of charges

Standing Orders

Standing Orders and Balance orders will be activated at nominal charges


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Indus Easy Savings Account No Frills Account

Indus Easy Savings Account is a facility to provide basic banking facilities to

common man without tedious processes and higher minimum balance. You may

recommend eligible potential customers to be a part of IndusInd Family through Indus

Easy Savings Account

Product Features:

>> Re.1/- to open account, as minimum balance

>> Free Internet Registration

>> ATM Card to operate at IndusInd Bank ATMs

>> Direct withdrawal facilityweekly once


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>> One cheque book issued per annum

>> Half yearly statements will be provided

>>NO Charges on non-maintenance of minimum Average Quarterly Balance

>> Free Training on Technology Banking

INDUSIND EDGE

BUSINESS ACCOUNT

One Account for your many business needs
http://www.indusind.com/downloads/Indus%20Edge.pdfhttp://www.indusind.com/downloads/Indus%20Edge.pdfhttp://www.indusind.com/downloads/Indus%20Edge.pdf


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Indus Edge Business Account

The Ideal Current Account for Your Business

IndusInd Bank understands the nature of your business needs and has tailored

products to meet them. This product will prove to be an ultimate value for money

considering that you will get loads of benefits against a nominal minimum balance

requirement.

Anywhere Access

Payment Strength

Payable At Par Cheques

Free Demand Drafts

Edge through Electronic Banking


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Experience the power of express fund transfer through Real Time Gross Settlement

(RTGS) and National Electronic Funds Transfer (NEFT). As an Indus Edge

customer, RTGS and NEFT services are available to you free of cost, enabling

funds transfer to specified locations and branches of select banks.

Cash Withdrawal at Non-Home Location

Collection Strength

Anywhere Collection

Outstation Collection

Cash Deposit

Other Services

Doorstep Banking

IndusInd Doorstep Banking enables you to have cheques and cash picked up or

delivered from / to your doorstep on a daily basis or on call basis, at a time

convenient to you. How about that for saving time?!

Internet Banking (Indus net)

Phone Banking

Long Banking Hours

Mobile Banking and Alerts.

International Debit Card


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INDUS PRIME

TRUSTS, ASSOCIATIONS, SOCIETIES & CLUB

ASpecial Savings Account for Trusts, Associations, Societies and Clubs

Mutual Fund Investments

SCHEDULE OF CHARGES

Monthly ADB 1,00,000

Balance Non-Maintenance

ChargeRs. 1,000 pm

Payments

Cheque Book (At Par) Free
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Cheque Transaction Based Free

Fund Transfer (Within

IndusInd)

Free

DD / PO (On IndusInd) Free

DD (Correspondent Bank) Free

DD (Non-Correspondent Bank)Rs 3/1000, min Rs.100 and max

Rs15,000

DD / PO Cancellation /

Duplicate(Only for IndusInd)

Rs. 100 per instrument

DD / PO Revalidation (For

IndusInd)Rs. 50 per instrument

Cash Withdrawal (Home

Location)Free

Cash Withdrawal (Non-Home

Location)Rs. 1/1000

NEFT Free

RTGS Free

ECS Payments Free

Collections

Local cheque/DD/PO (Home

Location)Free

Local cheque/DD/PO (Non-Home Location)

Free

Outstation Cheque on IndusInd

LocationFree


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Outstation Cheque on non

IndusInd Location

Rs. 1/1000, min Rs. 50 and max Rs.

150 per Instrument

Cash Deposit (Home Location)5 times of previous month ADB

free,thereafter Rs. 2/1000

Cash Deposit (Non-Home

Location)Rs. 2/1000, deposited

NEFT Free

RTGS Free

Doorstep Banking*

Cash Delivery / Pickup (Per

Call)

Till 2 lacs Free once a day

2 - 5 lacs Rs. 250

5 -10 lacs Rs. 400

10 - 20 lacs Rs. 800

20 - 50 lacs Rs. 1,100

50 acs Contact Branch

Cheque Pickup (On Call) Free once a day

Others

ECS Return Rs. 200


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Cheque Return (Inward) Rs. 250 per cheque

Cheque Return (Outward -

IndusInd Location)

Rs. 50

Cheque Return (Outward -

Outstation)

Rs.100 per cheque + Out of pocket

charges

Stop Payment (Single

Instrument)Rs. 100

Stop Payment (Cheque Series) Rs. 150

Account Statement (e-

Statement) (Monthly)Free

Account Statement (Physical) Quarterly

Duplicate Statement / Ad hoc

StatementRs. 10 per page

Dormant Account Free

Account Closure (Within 6

months)Rs. 250

Account Closure (After 6

months)Rs. 200


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PREMIUM SAVING ACCOUNT

IndusInd Bank extends Premium Savings Bank Account with a number of

facilities.

Quarterly Balance

Average Quarterly balance of Rs.25000/-

Multicity Operation

Personalized Multicity Cheque books will be issued to the account

Statements

Monthly statement of accounts will be available before 5th of succeeding month

Debit Card

International Debit Card with access to 1700 ATMs without any charges


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Internet Banking

Available without any charges

Standing Orders

Standing Orders and Balance Orders will be executed free of charges

Demand Drafts

DDs and Pos will be issued free of charges, if it is not out of cash remittance

FIXED DEPOSIT

You have worked hard to earn your money. Now, let your money work hard to

earn for you with IndusInd Bank Fixed Deposits.

The BENEFITS of fixing your deposits with IndusInd Bank

> Flexible range of tenures to suit your investment plans

> Choice of various Fixed Deposit schemes> Interest payable monthly, quarterly, half yearly, annually or at maturity as per

our convenience

> Interest is payable by cheque or by credit to your Savings / Current account


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> Competitive interest rates

> Nomination facility available

> Partial withdrawals permitted> Auto Renewal facility

> Advances available against your deposits up to 75% of the deposit value

> Special rates for Senior Citizens

> The Recurring Deposit encourages savings and there is no TDS

Eligibility

IndusInd Bank Fixed Deposits can be opened by Individuals, HUFs, Sole

Proprietorships, Partnership Firms, Ltd. Companies, Guardians on behalf of

Minors, Societies, Clubs, Trusts and Associations.

Tenure

15 days up to 10 years.

Amount

> The initial minimum amount to invest is INR 10000.00

> There is no maximum amount.

> For Senior Citizens, the minimum amount is INR 50000.00

Shoping and e-shoping

Utility bill payment and mobile top ups

Railway tickets and airline ticket payments


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What is RTGS?

Real Time Gross Settlement (RTGS) System is set up, operated and maintained

by Reserve Bank of India to enable funds settlement on real-time basis across

RTGS enabled banks in the country. This is the fastest possible money transfer

system through the banking channel. The RTGS system is primarily for large

value transactions. The minimum amount to be remitted through RTGS is Rs.1 lakh.

What is NEFT?

National Electronic Funds Transfer (NEFT) system is a nation wide funds

transfer system to facilitate transfer of funds from any NEFT enabled bank

branch to any other NEFT enabled bank branch. Funds transferred under NEFT

will be credited to the beneficiarys account on the same day and there is no

minimum or maximum amount for remittance through NEFT.

Non-Resident External (NRE) Rupee Account

As the name suggests these are repatriable Indian Rupee accounts which can be

maintained by Non Resident Indians being Indian Citizens as also foreign

citizens of Indian origin (other than citizens of Bangladesh & Pakistan ) in the

cheque payment rs.2/- for every rs.500/-for upto

cumulative value of

o 20000/-p.m.

e-payment for mobile top-up rs. 5 for every transaction,upto 5

tranaction p.m.

withdrawals @ indusund atm rs. 2 for every tarnaction,upto 5

tranaction p.m.

Debit card purchase 20/-

E-registeations 3regn(1stmonth)


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form of current , savings and / or deposit accounts .

NRIs are permitted to open these accounts through remittance fromabroad. Remittance from abroad could be through Wire Transfer, Bank Drafts,

personal cheques, International money order, travelers cheques, Currency,

Drafts issued by Exchange houses etc. Accounts can also be opened by funds

transfer from any existing non resident accounts i.e NRE / FCNR accounts

maintained with any other scheduled commercial Bank.

You can open current / savings/term /recurring/fixed deposits

Accounts are denominated in Indian Rupees

Joint accounts are permitted with other NRIs / PIOs only

Interest exempt from income tax in India

Principal amount and Interest are fully repatriable

Interest on the savings account is accrued on monthly minimum balance &

credited to the account on half-yearly basis

On term deposits, period vary from 1 Year to 3 years

Interest paid on maturity or quarterly basis as per customer's request

Statement issued on monthly basis or as per customers request or

REGISTER for E-Statement Services

Nomination facility available

Operation by residents under power of attorney available for local payments

and permitted investments. However, power of attorney holder cannot open

or close NRE accounts nor make gifts or facilitate loans..

Rupee loans against Deposits held in NRE accounts are available to account

holder as well as third party resident in India for specified purpose and


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subject to specified conditions. .

Rupee loans are also available outside India for fund based/non fund based

facility for any bonafide purpose.Gifts made to close resident relatives are exempt from income tax liability

applicable in case of the recipient donee.

NRO- Non-Resident Ordinary Account:

Any person resident outside India including an NRIs who is a citizen of

India or a person of Indian origin residing outside India are permitted to

open an NRO account. The account can be funded through remittance from

abroad or by travelers cheques/currency notes while on visit to India or

through Indian Rupee funds

NRO account can be opened as savings/current/recurring/fixed deposit

account.

Accounts are denominated in Indian RupeesInvestments are non-repayable however remittance up to USD 1 million per

financial year calendar year is permitted provide certain applicable

conditions are fulfilled.

Joint accounts are permitted with Resident / Non-Resident Indians.

Fixed Deposits can be maintained for terms varying from 15 days to 10

years Interest on Savings Account accrued on monthly minimum balance

basis & credited to the account half-yearly

Interest is repayable subject to payment of tax

Statement issued on monthly basis or as per customer's request or Register

for E-Statement services


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Nomination facility available .

Operation by residents under power of attorney available for local payments

and permitted investments. However, power of attorney holder cannot openor close NRO accounts nor make gifts or facilitate loans.

Rupee loans in India can be granted to account holder and 3rd party against

CASA RATIO :-

Strong saving deposit growth and pick up in CA deposits led 54bps uptick in

CASA ratio Q-o-QDeposits grew by 24% Y-o-Y and 3% Q-o-Q above the

industrys average growth of 14% Y-o-Y. CASA ratio increased 54bps Q-o-Q

largely attributable to strong growth in saving deposits (Up 8% Q-o-Q) and healthy

growth in current account deposits (up 2% Q-o-Q). The bank commendable

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

SA Deposits CA Deposits Term Deposits Deposits CASA Ratio

Chart Title

Q2FY15

Q2FY14

Q1FY15

Y-D-Y

Q-o-Q


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improved SB deposits a 100bps rate cut on deposits up to INR 1 lacmanly

attributable to customer acquisition run rate, stickiness in existing customer base,

aggressive marketing campaign and better performance in government business.

We expect CASA ratio to improve further on the back of branch expansion,aggressive customer acquisition strategies, increased focus on government business

and superior liability products offering.

CHAPTER-3


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DATE PRESENTATION AND ANALAYSIS

RESEARCH METHODOLOGY

This chapter describes the methodology of the study. This project is based on information

collected from primary sources. After the detailed study, an attempt has been made to

present comprehensive analysis of deposit account used by the customers of the bank.

The data had been used to cover various aspects consumers preference and customers

satisfaction regarding deposit account in the bank . In collecting requisite data and

information regarding the topic selected, I went to the customers of Indusind bank

shimoga and collected the data.

Survey design:

The study is a cross sectional study because the data were collected at a single point of

time. For the purpose of present study a related sample of population was selected on the

basis of convenience.


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Sample Size and Design:

A sample of 20 people was taken on the basis of convenience. The actual consumers were

contacted on the basis of random sampling.

Research Period:

Research work is only carried for 5 or 6 weeks.

Research Instrument:

This work is carried out through self-administered questionnaires. The questions included

were open ended, dichotomous and offered multiple choices.

RESEARCH METHODOLOGY

Step1:

Program Planning

Step 2:

Start Survey

Step 6:

Consultation & review

Step 5: Step 3:

Research

Methodology


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Data Collection:

The data, which is collected for the purpose of study, is divided into 2 bases:

Primary Source:The primary data comprises information survey of analysis on deposit

scheme of Indusind Bank. The data has been collected directly from respondent with thehelp of structured questionnaires.

Secondary Source: The secondary data was collected from internet, annual report of

bank year(2012-20013) and the pump late provided by the bank.

Data Analysis:

The data is analyzed on the basis of suitable tables by using mathematical techniques.

The technique that I have used is bar, pie, column ,surf ace, doughnut technique.

Secondary data is used in this study.

This study is unstructured because it was not possible to have structured questionnaire

owing to the nature of study.

Certain project related information is also collected with the help of staff of the

company and verbal communication.

Sample design:-

Project was assigned to me by bank itself. Project topic Legal Framework for

Financial Management was assigned to me for study by MR. kiran kumar

Time Duration:-

This project work was undertaken for duration of 6 weeks.

Sources Used:-

Internet website.

Books of Banking Information

BANKS Balance sheet.

BANKSBrusher.


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This chapter is about information sources used to make project. Chapter provides

information about Research Methods used by me during summer training program to

prepare this project report.

Information collected for this project is from most reliable and best possible meansavailable to me during my training course .it is all about to take deposit from customer

and provide him services as fast as possible. Project give due importance to legal

framework for deposit schemes.

Limitations

In attempt to make this project authentic and reliable, every possible aspect of the topic

was kept in mind. Nevertheless, despite of fact constraints were at play during the

formulation of this project. The main limitations are as follows:

Main limitation of deposits schemes is that from the point of view of income tax

department is that the holder of the account when make a fixed deposit in the bank with

Rs. 2lac and got rate of interest of 7.5% for one year. With this his annual income from

interest is Rs. 15000.

But instead of this bank or the relationship officers of the bank gave suggestion that how

account holder can save tax.

The account holder can make fixed deposits in 2 parts 1lac-1lac and can save tax, so this

is the main limitation of the deposits schemes.

Due to limitation of time only few people were selected for the study. So the

sample of consumers was not enough to generalize the findings of the study.

The main source of data for the study was primary data with the help of self-

administered questionnaires. Hence, the chances of unbiased information are less.

People were hesitant to disclose the true facts.


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DATE PRESENTATION AND ANALAYSIS

3.1) GRAPH FOR THE PERSONS HAS ACCOUNT IN INDUSIND BANK OR

NOT

I had asked question from 20 people resident of shimoga, regular visitors in IndusInd

bank.

In my 1stquestion all the customers has account In the IndusInd bank.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

yes no

Source :

from

survey

method


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3.2) GRAPH SHOWING THAT CUSTOMERS HAVE WHICH ACCOUNT

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

3.3) GRAPH SHOWING THE TIME PERIOD OF ACCONT

saving

current

nri

any other

less than 1 year

1-3 year

3-5year

above 5

Source :

from

survey

method

Source :

from

survey

method


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

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

3.4) GRAPH SHOWING THE WORK OF CUSTOMERS

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

0

1

2

3

4

5

6

7

8

9

businessman employee student any other

Source :

from

survey

method


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3.5) GRAPH SHOWING THE ANNUAL INCOME OF THE CUSTOMER

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

3.6) GRAPH SHOWING THAT HOW MUCH BALANCE CUSTOMERS MAINTAIN

0-2500

ustomers, 2500-5000 6 customers, 5000-above 6.

0

2

4

6

8

10

1lac-2lac 2lac-3lac3lac-above

8-10

6-8

4-6

2-4

0-2

Source :

from

survey

method

Source :from

survey

method

Series 1

Series 2

Series 3

0

5

10

0-2500 2500-50005000-above


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3.7) GRAPH SHOWING THE CUSTOMER RESPONSE REGARDING

DEALI NG OF STAFF

3.8) What do you want i n cur rent account?

6-cheque alert on mobile,6 home banking, 9- overdraft facility

3.9) how do you want in saving account?

0

1

2

3

4

5

6

7

8

9

highly disagree disagree netural agree highly agree

0

5

10

cheque alert home

banking

overdraft

facility

Source :

fromsurvey

method

Source :

from

survey

method


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3.11) Are you aware with RTGS/NEFT?

11-NO, 9-YES

YES

NO

Source :

from

surveymethod


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CHAPTER-4


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F INDI NGS , SUGGESTIONS AND CONCLUSIONS

FI NDINDS :-

On the whole I would like to summarize my whole of the project that the deposit schemes

of the IndusInd bank are very good. The schemes are of that kind that a businessman can

maintain his account over here and also a laborer can maintain his account here. bank

has account for NRI- (NRO and NRE)persons and for a student- no frill account in which

they provide free atm, free first cheque book, internet banking, mobile banking, phone

banking. Bank has account which starts from rs.2500 that is Indus classic. From 5000

Indus privilege. Society/TRUST zero balance account. Current account with exelentfacilities. Fixed deposit with very good rate of interest. Demat account for online share

purchasing. Young saver account for children. Indus money for long term investment

purpose. Sweep account for taking the benefits of both saving and fixed deposit at the

same time in one account.

Conclusions

The first of all I would like to say that the time that I had spend in IndusInd bank will

always be in my mind because in my training period I came to know that how a private

bank provide service to customer was good . Weather it is about dealing with customers,

timing every thing. The project involves valuation of indusind Bank. The methodology

followed is Target Pricing, which including estimating growth rate by regression on

historical sales to forecast next year sales, earning and Profit and Loss account. Then EPS

is calculated which is multiplied to Historical P/E to forecast intrinsic value of share.

So at last I want to say that service is exelent here, dealing is also exelent, and deposit

schemes are amazing.


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Recommendation/suggestions

There should be system like in forgien countries that employee on every counter can

deal with every customer, that is he can take deposit from him he cashed his cheque.

Bank should increase in number of branches in all over India.

Number of ATM should be increased.

Number of employees for banking operation should be increased.

There should be more advertisement of the bank, because mostly people are not aware

about the name of the bank.

Bank should use some promotional strategies.


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APPENDIX


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QUESTIONNAIRE


I, karthik gs student of MBA II Semester atjain University, banglore is conducting

a research on topic DEPOSIT SCHEMES OF INDUSIND BANK . Kindly help

me to gather the information by sparing your 10-15 minutes for filling the

questionnaire. I will be very thankful. I assure you that the information will be kept

confidential.

DEMOGRAPHIC PROFILE

NAME: __________________________

AGE: 20-25 25-30 30-35

35-40 40-45 Above 45

GENDER: Male Female

QUALIFICATION:

MONTHLY INCOME: 10000-20000 20000-30000

30000-40000

40000-ABOVE

CONTACT NO.

ADDRESS

Que 1 Do you have account in this bank?

Yes

No

Que 2 Which type of account do you have?

Saving


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Current

Nri account

Any other plz... Specify

Que 3 For how long do you have been account in this bank?

Less than one year

One to three year

Three to five

Above five

Que 4 What is your occupation?

Businessman

Employee

Student

o Any other plz... Specify_____________

Que 5 What is your annual income?

100000-200000

200000-300000

300000-above

Que 6 How much money do you want to invest in the bank?

0-2500

2500-5000

5000-above

Que7 Do you have account in any other bank?

If have, please specified__________________________

Que 8 Are you satisfied with the services provided by this

Yes


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No If not please

specify____________________________

Que9 Do you want to avail services of any other account in our bank if yes thenspecify the name of the account..

Que 10 Are u aware with RTGS/NEFT services of the bank?

Yes

No

Que 11 what do you want in current account?

Cheque alert on mobile

Home banking facility

Overdraft facility

Que 12 what do you want in saving account?

Demat account facility

Sweep account facility

Recurring facility

Que 13 Do you want advanced technological features in your account.

Likeinternet banking

Mobile banking

Phone banking

Personalized bankingHome banking facility

Ans- Yes

No


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Que 14 Do you want that a call is made to you when a cheque has come for payment in

bank from your account(from third party)?

Yes

No

Que 15 Do you want monthly statement of your account on your e-mail id?

Yes

No

Que 16 Why do you prefer this bank?

Good services

Atm facility

With in your reachAny other plz... Specify..

Que 17 What attracted you to open account in this bank?

Fame of the bank

Location

Good services

Que 18 Dealing of Staff is good

Response

Highly disagree

Disagree

Neutral

Agree

Highly agree


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Bibliography

Company History information is available through following sources:

Official website of company: IndusIndbank.com

Units of company and their other details are available through:

Official site of company

Annual results and financial details are collected from:

Balance sheets of company

http://www.indusind.com/downloaddepositschemesrr

http://induswealth.indusind.com/mutualfund/website/nsc/index.asp

http://www.wikiinvest.com/index/bse_bankex(bsebk)

http://www.webindia123.com/finance/bank/fix/html

http://wwfhummel.cnchost.com/money_quiz.html

http://enwikipedia.org/wiki/banking_in_india

http://enwikipedia.org/wiki/deposit_account

http://enwikipedia.org/wiki/hinduja_group

http://enwikipedia.org/wiki/history_of_banking

www.hindujagroup.com

http://www.banknetindia.com/stock/bankex.html

Sharma.k.shashi, (2006), theories of banking, kalyani publications.

Businessinfo.com

Managementparadise.com

Hand Book Of Banking Information

Bank of India

Financeguru.com

Other bank sites

RBI guidelines(Google Search)
http://www.indusind.com/downloaddepositschemesrrhttp://www.indusind.com/downloaddepositschemesrrhttp://induswealth.indusind.com/mutualfund/website/nsc/index.asphttp://induswealth.indusind.com/mutualfund/website/nsc/index.asphttp://www.wikiinvest.com/index/bse_bankex(bsebk)http://www.wikiinvest.com/index/bse_bankex(bsebk)http://www.webindia123.com/finance/bank/fix/htmlhttp://www.webindia123.com/finance/bank/fix/htmlhttp://wwfhummel.cnchost.com/money_quiz.htmlhttp://wwfhummel.cnchost.com/money_quiz.htmlhttp://enwikipedia.org/wiki/banking_in_indiahttp://enwikipedia.org/wiki/banking_in_indiahttp://enwikipedia.org/wiki/deposit_accounthttp://enwikipedia.org/wiki/deposit_accounthttp://enwikipedia.org/wiki/hinduja_grouphttp://enwikipedia.org/wiki/hinduja_grouphttp://enwikipedia.org/wiki/history_of_bankinghttp://enwikipedia.org/wiki/hi

Analysis on Deposits Schemes of Indusind Bank

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