ancilliary services of banks

7/28/2019 ancilliary services of banks

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PRESENTED TO: PRESENTED BY:

Dr. Devendra Singh Abhijeet SinghChandrakant

Niranjan

Chetan Jain

Deepak Jaiswal

Hemant Suthar

Juhi Verma

Ancillary Services ByICICI & Sbi bank


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Banks

Banks play an important role in the field of trade,commerce and industry.

They promote and mobilize savings by providing

safety, confidentiality and attractive rate of

interest.

Banks inspire confidence in people and help in

creating banking habits in them.


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Bank services

Primary services: borrowing and lending ofmoney

Secondary services( or ancillary services):

Services offered by banks to help the customers

Such activities include collection of cheques,

dividend, warrants, etc. on behalf of customers as

well as effecting transfer of funds, remittances by

mail and telegram in order to attract customers

and make banking services effective.


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Rendered to banks own customers

Available to general public

Category of ancillary

services


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Services of bank to itscustomersSome of functions in this category are

enumerated below:

(a) Dealing in Bills of Exchange, Promissory Notes,Hundies and Drafts.

(b) Issuing letter of credit, Travellers cheques andCircular notes.

(c) Buying, selling and dealing in bullion as well asforeign exchange and foreign bank notes.

(d) Acting as agent for clients, buying and sellingshares and debentures, and acting asunderwriter.

(e) Collection and remittance of money and

extending guarantee against loans raised bycustomers.


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Services to the General Public(i) Providing facility of lockers for the safe custody

of valuables.

(ii) Financial assistance for the establishment of

trusts, association, clubs and charitable

institutions.

(iii) Performing certain functions as are incidental or

conducive to the promotion and advancement of

trade and commerce.

(iv) extending financial help to the weaker sections

of society for self-employment.

(v) Issue of bank drafts, gift-cheques, banker's

cheques, etc.


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Types of ancillary services Remittance of funds Safe custody of valuables

Safe deposit vaults

Merchant banking

Bid bonds and performance guarantees

Credit/Debit cards

Standing instruction

Gift cheques Teller system

Stock invest, etc.


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ICICI Bank v/s SBI


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Indias largest private sector bank by market capitalization andsecond largest overall in terms of assets.

India's second-largest bank with total assets of Rs. 3,793.01billion and profit after tax Rs. 37.58 billion for the year ended March2011.

The Bank has a network of 1,646 branches and about 4,883 ATMsin India and presence in 18 countries (as on February 11, 2011) aswell as some 26 million customers (at the end of July 20011).

ICICI Bank is also the largest issuer of credit cards in India.

ICICI Bank's equity shares are listed in India on Bombay StockExchange and the National Stock Exchange of India Limited and its

American Depositary Receipts (ADRs) are listed on the New York

Stock Exchange (NYSE).


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Source: moneycontrol.com(19.02.12)


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''b2- Branch- free Banking'' is designed to offer seamlessinformation through a single interface to facilitate banking

transactions over the internet. It is a unique direct bank

access, which will empower customers to manage all their financesonline.


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InstaBanking- makes banking simpler, faster,

more convenient.

Through these 5 great channels - Internet

Banking, Mobile Banking, ICICI Bank ATMs,

Instant Voice Response (IVR) Banking and

iMobile - you can do your day today banking


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Izone: A unique interactive experience, this is a first for any banking websitein the world.

You can now deposit or withdraw cash, open fixed deposits and conduct

many more real banking transactions in i-Zone. Take a leisurely tour andenjoy the warmth of our virtual staff without getting away from your desktop.


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TV Banking: This pioneering initiative now enables you to get information regarding

loans, accounts, deposits and a lot more while you're watching that exciting cricket

match or your favorite sitcom.

Quite certainly, TV Banking has revolutionised banking by bringing it right into yourliving room.


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State Bank of India (SBI) is the largest bank in India.

The bank traces its ancestry back from British India, through

the Imperial Bank of India, to the founding in 1806 of the Bank of

Calcutta, making it the oldest commercial bank in the Indian

Subcontinent.

The GOI nationalized the Imperial Bank of India in 1955 with the

RBI taking a 60% stake and renamed it the State Bank of India.

In 2008, the Government took over the stake held by the

Reserve Bank of India.


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It has a market share among Indian commercial banks of about 20% in

deposits and advances, and SBI accounts for almost one-fifth of thenations loans.

It is the largest provider of infrastructure debt and the largest arranger

of external commercial borrowings in the country.

With 11,448 branches and a further 6500+ associate bank branches, the SBI

has extensive coverage.

State Bank of India has electronically networked all of its branches under

Core Banking System (CBS).

The bank has one of the largest ATM networks in the region, with more than

9000 ATMs across India and other electronic channels such as Internet

banking, debit cards, mobile banking, etc.


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Source: moneycontrol.com

(19.02.10)


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Paying utility bills at online SBI.

E-rail reservation service using SBI accounts.

MF investments handled through SBI a/c.

SBI e-tax VISA Money transfer

Use your 3-in-1 account to trade online

Loyalty rewards

Net banking for visually challenged


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Asset Liability Management in

banks

Function of ALM: to measure and control threelevels of financial risk

Interest Rate Risk (the pricing difference between

loans and deposits)

Credit Risk (the probability of default)

Liquidity Risk (occurring when loans and deposits

have different maturities)

Managing Net Interest Margin


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ALM in SBI

The Asset Liability ManagementCommittee (ALCO)

Market Related Funds Transfer Pricing

(MRFTP) Stressed Assets Management Group

(SAMG)


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ALM in ICICI

Asset Liability ManagementCommittee (ALCO)

Structural Rate Risk Management

Group (SRRMG)

Risk measurement and reporting

framework


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SWOT analysis-SBIStrengths Opportunities

Weakness Threats

Brand Name Market Leader

Wide Distribution Network

Diversified Portfolio

Government Owned

Low Transition Costs

Hierarchical management

structure of the bank

Non performing assets

(NPAs)

Modernisation

Merger of associate banks

with SBI

Additional 2000 branches and

3000 ATMs

Increasing trade and business

relations

Advent of MNC banks

Consumer expectations Employee Strike

Private banks venturing into

the rural and semi-urban

sector


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SWOT analysis-ICICIStrengths Opportunities

Weakness Threats

Brand Name Market Share

Huge Network

Diversified Portfolio

Salary Account

Working Hours

Treasury Management

Aggressive Marketing Technology

Transaction Cost

Focus on High end customers Defensive Approach in lending

Little Presence outside India

Poor customer Care/ service

New IT & ITES Companies Dissatisfied Customers of

Other Banks

Remittances

Business advising for smaller

Players

Advent of MNC banks

Dissatisfied Customers Ever improving nationalized

banks


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REFERENCES :-

MAGAZINS:

Business WorldBusiness Today

The Smart Manager

WEBSITES:

www.statebankofindia.com

www.icicibank.com

www.rbi.org.in


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THANK

YOU

ancilliary services of banks

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