Barclays.lalittiwari.dm10b19.Date15 September

8/4/2019 Barclays.lalittiwari.dm10b19.Date15 September

1/25

PROJECT REPORT ON INDIAN BANKINGSECTOR AND BARCLAYS

Submitted to: Pranav Sir Submitted by: Lalit Tiwari(DM10B19


2/25

Introduction of Banking Sector

Banks are the major financial intermediaries with a share of 64% of total financial assets.

However, non-bank financial companies and development finance institutions are also emerging

as alternative sources of funding. In India, foreign banks account for only around 8% of the totalassets of the banking system. Further, domestic households are not allowed to place deposits

abroad. Similarly, conditions for accessing overseas capital markets by domestic corporate have

been stringent, in terms of size, maturity, pricing, etc.

The impact of the entry of foreign banks on domestic banks is likely to depend on various factors

such as the structure, strength and competitiveness of domestic banks, the share of foreign banks,

and the regulatory/supervisory framework.

While the entry of foreign banks could definitely improve the competitive environment, they are

not likely to weaken domestic banks. With better technology and expertise in offering

specialized banking products such as derivatives, advisory services, trade finance, etc, the entry

of foreign banks can enhance healthy competition and has a positive spillover effect on thedomestic banks.

Entry of foreign banks

Domestic banks account for 92% of total banking assets in India. Given the size of the country

and the policy to ensure that foreign banks. market share does not exceed 15%, domestic banks

are likely to dominate the banking markets.

Behaviour of foreign banks

The presence of foreign banks does not imply negligence of particular sectors of the economy. In

India, foreign banks are required to comply with priority sector lending norms, where thecommitments are lower than those applicable to domestic banks under a tailor-made structure

suitable to them. The experience is that foreign banks adhere to the Reserve Bank prescriptions.

Generally, however, due to their limited knowledge of the local industry and branch network,

foreign banks are very conscious about their asset quality and a major shift in the share of

foreign banks may result in neglect of the credit requirements of small and medium-sized

businesses, whose development is crucial for emerging markets, but which are perceived as

carrying relatively higher risks. Foreign banks constantly evaluate the political, economic and

financial climate in financial markets and vary their investment/lending decisions. While the

credit risk management processes and practices vary among banks, all internationally active

banks have centralised policies and country and transfer risk monitoring, reporting and limiting

mechanisms.

In response to the Asian crisis and more recent events, banks in India are required to strengthen

their country and transfer risk monitoring and analysis in an effort to identify incipient problems

and to adjust exposures more promptly and systematically.


3/25

Competition from foreign banks

While entry of foreign banks is bound to affect the overall competitive situation in the market,

much depends on the policy of the sovereign in regard to their entry/expansion, the existing share

of domestic banks, etc. One of the main thrusts of the banking sector reforms in India has been to

introduce more competition in the banking industry. With regard to mergers, only very few

foreign banks operating in India have gone through the process of global mergers. The impact of

megamergers taking place at the global level on the competitive position of the Indian banking

system has been minor, in view of foreign banks. limited share in the financial system. At the

same time, foreign banks have the potential, even without megamergers, to improve their market

share, given their use of sophisticated technology and capability of introducing innovative

products.

The banking systems international isolation was also due to strict branch licensing controls on

foreign banks already operating in the country as well as entry restrictions facing new foreign

banks. A criterion of reciprocity is required for any Indian bank to open an office abroad.

Financial Structure

The Indian financial system comprises the following Institutions:

1. Commercial banks

Public sector

Private sector

Foreign banks

Cooperative institutions

(i) Urban cooperative banks

(ii) State cooperative banks

(iii) Central cooperative bank

2. Financial institutions

All-India financial institutions (AIFIs)

State financial corporations (SFCs)

State industrial development corporations (SIDCs)

3. Nonbanking financial companies (NBFCs)4. Capital market intermediaries

About 92 percent of the countrys banking segment is under State control while the balance

comprises private sector and foreign banks. The public sector commercial banks are divided into

three categories.


4/25

Current Indian Banking System Scenario

It is true that banks in India are facing difficulty in getting deposits. There are many reasonsbehind this problem.

Two points for what was happening in banking and investment sector in the last 5 years

Increased consumerism: If we look at the consumption pattern in last 5 years, people weremoving from being savers to consumers, i.e., more emphasis on benefits gained today rather thangains received through savings in future, this changing attitude is one of the reasons for highergrowth in lending compared to deposits.

Alternatives and risks:People were looking for more alternatives like mutual funds, differentinsurance schemes, stock market, etc. People were moving to these products with higher returnexpectations. These instruments also have higher risk and increased income level people whodeposit high amounts of money into banks were ready to take these high-risk alternatives.

But now the situation will be slightly better for banking system in India because investors arelosing a lot of wealth in stock markets and mutual funds. People will realize the importance ofsafer investment vehicle and will start diversifying their portfolio with increased exposure tosafer instruments like bank deposits.

Long-Term Sources:

Tier one and Tier two Capital in the form of equity/subordinate

debts/debentures/preference shares.

Internal accrual generated out of profits.

Long-term fixed deposits generated from public and corporate clients, financial

institutions, and mutual funds, etc. Long-term borrowings from financial institutions like NABARD/SIDBI.

Short-Term Sources:

Call money market, i.e., funds generated among inter-banking transactions where there is

online trading of money between bankers.

Fixed deposits generated from public and corporate clients, FIs, and MFs, etc.

Market-linked borrowings from RBI.

Sale of liquid certificate deposits in the open market.

Borrowing from RBI under Repo (Repurchase option). Short and medium-term fixed deposits generated from public and corporate clients,

mutual funds, and financial institutions, etc.

Floating in current and saving accounts.

Short-term borrowings from FIs by way of rated papers placed, etc.


5/25

INDUSTRY OVERVIEW

(a)Porter's 5 Forces Analysis

Threat of New Entrants - The easier it is for new companies to enter the industry, the more

cutthroat competition there will be. Factors that can limit the threat of new entrants are known asbarriers to entry. Some examples include:

Existing loyalty to major brands

Incentives for using a particular buyer (such as frequent shopper programs)

High fixed costs

Scarcity of resources

High costs of switching companies

Government restrictions or legislation

The banking industry is highly competitive. The financial services industry has been around forhundreds of years and just about everyone who needs banking services already has them.

Because of this, banks must attempt to lure clients away from competitor banks. They do this by

offering lower financing, preferred rates and investment services. The banking sector is in a race

to see who can offer both the best and fastest services.

Threat of New Entrants: Low

Porter's 5 Forces


6/25

Power of Suppliers - This is how much pressure suppliers can place on a business. If one

supplier has a large enough impact to affect a company's margins and volumes, then it holds

substantial power. Here are a few reasons that suppliers might have power:

There are very few suppliers of a particular product There are no substitutes

Switching to another (competitive) product is very costly

The product is extremely important to buyers - can't do without it

The supplying industry has a higher profitability than the buying industry

Supplier Power: Low

The suppliers of capital do not pose a big threat, but the threat of suppliers taking away the

human resource. If a talented individual is working in a smaller regional bank, there is the chance

that person will be enticed away by bigger banks, investment firms, etc.

Power of Buyers- This is how much pressure customers can place on a business. If one

customer has a large enough impact to affect a company's margins and volumes, then the

customer hold substantial power. Here are a few reasons that customers might have power:

Small number of buyers

Purchases large volumes

Switching to another (competitive) product is simple

The product is not extremely important to buyers; they can do without the product for a

period of time Customers are price sensitive

Buyer Power: High

With the emergence of larger number of players in the Banking Industry, the switching cost of

the buyer has gone done significantly. The onus is now on the effectiveness and speed with

which the services are provided to the customers. Financial institutionsby offering better

exchange rates, more services, and exposure to foreign capital markets -work extremely hard to

get high-margin corporate clients. Options in the Auto Finance Sector also give the customers

more power to decide upon the kind of financing. Introduction of specialized products forWomen and Students etc also show that the buyer power is high in this Industry.

Availability of Substitutes - What is the likelihood that someone will switch to a competitive

product or service? If the cost of switching is low, then this poses a serious threat. Here are a few

factors that can affect the threat of substitutes:


7/25

Starting a bank in a country like India is not as easy as any other industry, but if a new bank is

started that is mainly targeted on Niche Segments might pose a threat to ICICI. Entry of foreign

players and grant of new licenses by RBI, Threat from other non banking financial services could

also pose a threat especially equity investment, insurance etc.

Threat from substitutes: low

The main issue is the similarity of substitutes. For example, if the price of coffee rises

substantially, a coffee drinker may switch over to a beverage like tea.

If substitutes are similar, it can be viewed in the same light as a new entrant.

Competitive Rivalry - This describes the intensity of competition between existing firms in an

industry. Highly competitive industries generally earn low returns because the cost of

competition is high. A highly competitive market might result from:

Many players of about the same size; there is no dominant firm

Little differentiation between competitors products and services

A mature industry with very little growth; companies can only grow by stealing

customers away from competitors

Competitive Rivalry: High

Top Performing Public Sector Banks

a. SBI

b. Punjab national bank

Top Performing Private Sector Banks

a. HDFC Bank

b. AXIS Bank

Top Performing Foreign Banks

a. Citibank

b. Standard Chartered

c. HSBC Bank


8/25

(b) Composition of Indian Banking System

India had a fairly well developed commercial banking system in existence at the time of

independence in 1947. The Reserve Bank of India (RBI) was established in 1935. While the RBI

became a state owned institution from January 1, 1949, The Banking Regulation Act was

enacted in 1949 providing a framework for regulation and supervision of commercial bankingactivity. There was a feeling that though the Indian banking system had made considerable

progress in the 50s and 60s, it established close links between commercial and industry houses,

resulting in cornering of bank credit by these segments to the exclusion of agriculture and small

industries.

To meet these concerns, in 1967, the Government introduced the concept of social control in the

banking industry. The close link between big business houses and big banks was intended to be

snapped or at least made ineffective by the reconstitution of the Board of Directors to the effect

that 51 per cent of the directors were to have special knowledge or practical experience.

Appointment of whole-time Chairman with special knowledge and practical experience ofworking of commercial banks or financial or economic or business administration was intended

to professionalize the top management.

Imposition of restrictions on loans to be granted to the directors concerns was another step

towards avoiding undesirable flow of credit to the units in which the directors were interested.

Development Financial Institution

From the fifties a number of exclusively state-owned development financial institutions (DFIs)

were also set up both at the national and state level, with a lone exception of Industrial Credit

and Investment Corporation (ICICI) which had a minority private share holding.

The mutual fund activity was also a virtual monopoly of Government owned institution, viz., the

Unit Trust of India. Refinance institutions in agriculture and industry sectors were also

developed, similar in nature to the DFIs. Insurance, both Life and General, also became state

monopolies.


9/25

Structure of the banking industry

According to the RBI definition, commercial banks which conduct the business of banking inIndia and which

(a) have paid up capital and reserves of an aggregate real and exchangeable value of not lessthan Rs 0.5 mn and

(b) satisfy the RBI that their affairs are not being conducted in a manner detrimental to theinterest of their depositors, are eligible for inclusion in the Second Schedule to the Reserve Bankof India Act, 1934, and when included are known as Scheduled Commercial Banks.

Scheduled Commercial Banks in India are categorized in five different groups according to theirownership and/or nature of operation.

These bank groups are

(i) State Bank of India and its associates,(ii) (ii) Nationalised Banks,(iii) (iii) Regional Rural Banks,(iv) Foreign Banks(v) Other Indian Scheduled Commercial Banks (in the private sector).


10/25

All Scheduled Banks comprise Schedule Commercial and Scheduled Co-operative Banks.Scheduled Cooperative banks consist of Scheduled State Co-operative Banks and ScheduledUrban Cooperative Banks.

Leading Indian Banks by Assets and Market Capitalization

Bank Majority Shareholding Asset Size(in $Billions)

Marketcapitalization(in $ Billions)

Listed stockexchange

State Bank ofIndia

Government 314 36.6 Mumbai,London

ICICI Bank Private 81 25.6 Mumbai,New York

Punjab NationalBank

Government 66 7.6 Mumbai

Bank of Baroda

Government


Bank of India Government 61 5.1 Mumbai

Canara Bank Government 59 5.5 Mumbai

IDBI Bank Government 52 2.9 Mumbai

HDFC Bank Private 49 22.2 Mumbai

Union Bank ofIndia


Axis Bank Private 40 11.6 Mumbai,London

Market capitalization data based on full capitalization as on March 18, 2011Bank Assets as on March 31, 2010; Source: Indian Banks Association

Market share


11/25

Growth drivers:

Industrial development is fueling rapid economics growth giving sector a major boost.

Retail demand: increase in demand for housing, car and personal loans Infrastructure: Infrastructure one of the biggest growth drivers is expected to grow @

35% - 3 year.

Telecom spectrum lending: 3G and broadband spectrum auction have increased credit

demand

Rural penetration: rural penetration by private banks is increasing

Export Imports: increase in export import enhances inland and outland bills business

Consolidation and expansions: Acquisition, merger and expansion by the industries is

very much prevalent since 2009.

36.6, 29%

25.6, 20%

7.6, 6%5.3, 4%

5.1, 4%

5.5, 5%

2.9, 2%

22.2, 18%

3.7, 3%11.6, 9% State Bank of India

ICICI Bank

Punjab National Bank

Bank of Baroda Government

Bank of India

Canara Bank

IDBI Bank

HDFC Bank

Union Bank of India

Axis Bank

Market share According to

deposits


12/25

Consolidated Balance Sheet of Scheduled Commercial Banks

(In` crore)

As at end-March 2010

Public sector Private sector Old private New private Foreign All schedule

Banks banks sector banks sector banks banks commercial banks

1. Capital 13,544 4,549 1,273 3,276 30,555 48,648

2. Reserves and Surplus 2,27,458 1,15,435 18,898 96,53 38,584 3,81,476

3. Deposits 36,91,802 8,22,801 2,29,897 5,92,904 2,37,853 47,52,456

3.1. Demand Deposits 3,68,528 1,34,58 21,597 1,12,992 67,902 5,71,019

3.2. Savings Bank Deposits 8,87,267 1,86,220 43,567 1,42,653 36,427 11,09,915

3.3. Term Deposits 24,36,006 5,01,992 1,64,733 3,37,259 1,33,524 30,71,522

4. Borrowings 3,13,814 1,48,803 8,127 1,40,676 62,146 5,24,764

5. Other Liabilities and Provisions 1,94,497 59,221 10,783 48,438 64,080 3,17,798

Total Liabilities/Assets 44,41,114 11,50,809 2,68,977 8,81,831 4,33,219 60,25,141

1. Cash and Balances with RBI 2,70,858 75,858 16,915 58,943 19,097 3,65,812

2. Balances with Banks and

Money at Call and Short Notice 1,24,216 38,681 5,692 32,989 20,559 1,83,455

3. Investments 12,05,783 3,54,117 83,499 2,70,618 1,59,286 17,19,185

3.1 Government Securities (a+b) 10,08,371 2,41,192 60,819 1,80,374 1,17,492 13,67,055

a) In India 10,00,015 2,41,028 60,819 1,80,209 1,17,492 13,58,534

b) Outside India 8,356 165 - 165 - 8,521

3.2 Other Approved Securities 5,015 311 289 21 4 5,330

3.3 Non-Approved Securities 1,92,396 1,12,614 22,391 90,223 41,790 3,46,800

4. Loans and Advances 27,01,300 6,32,494 1,54,136 4,78,358 1,63,260 34,97,054

4.1 Bills purchased and

Discounted 1,40,817 27,462 8,957 18,505 21,306 1,89,585

4.2 Cash Credits, Overdrafts, etc. 10,74,500 1,58,71 68,119 90,600 65,923 12,99,141

4.3 Term Loans 14,85,984 4,46,3 77,060 3,69,252 76,03 1 20,08,328

5. Fixed Assets 34,466 10,239 2,357 7,882 4,859 49,564

6. Other Assets 1,04,491 39,421 6,378 33,043 66,158 2,10,070

These include 27 public sector banks (State Bank of India and its six associates, 19 nationalized

banks and IDBI

Bank Ltd.), 7 new private sector banks,15 old private sector banks and 32 foreign banks.


13/25

Trends in Income and Expenditure of Scheduled Commercial Banks

Item 2008-09 2009-10

AmountPercentage

variationAmount Percentagevariation

1. Income 463702 25.7 494271 6.6

a) InterestIncome

388482 25.9 415752 7.0

b) OtherIncome

75220 24.6 78519 4.4

2. Expenditure 410952 26.0 437162 6.4

a) InterestExpended

263223 26.5 272084 3.4

b) OperatingExpenses

89581 15. 9 99769 11.4

of which :Wage Bill

47974 20.1 55164 15.0

c) Provisionand

Contingencies

58,148 42.3 65,310 12.3

3. OperatingProfit

110897 32.7 122419 10.4

4. Net Profit forthe year

52750 23.5 57109 8.3

5. Net InterestIncome(1a-2a)

1,25,258 24.7 1,43,669 14.7

(Amount in ` crore)

Source: Profit and loss statements of respective banks.


14/25

Barclays

Barclays PLC (LSE: BARC,NYSE: BCS) is a global banking and financial services companyheadquartered in London, United Kingdom. As of 2010 it was the world's 10th-largest banking

and financial services group and 21st-largest company according to a composite measure byForbes magazine. It has operations in over 50 countries and territories across Africa, Asia,Europe, North America and South America and around 48 million customers. As of 30 June2010 it had total assets of 1.94 trillion, the third-largest of any bank worldwide (after BNPParibas and HSBC).

Barclays is a universal bank and is organized within two business 'clusters': Corporate &Investment Banking and Wealth Management, and Global Retail Banking. The Corporate &Investment Banking and Wealth Management cluster comprises three business units: BarclaysCapital (investment banking), Barclays Corporate (commercial banking) and Barclays Wealth(wealth management). The Global Retail Banking cluster comprises four business units:

Barclaycard (credit card and loan provision), Barclays Africa, UK Retail Banking and WesternEurope Retail Banking.

Organizational structure:

Barclays is headed by Marcus Agius, the Group Chairman, who joined the Board on 1September 2006 and succeeded Matthew Barrett as Chairman from 1 January 2007. Agius is alsothe senior executive Director of the BBC and was formerly Chairman ofBAA PLC, Chairman ofLazard in London and a Deputy Chairman of Lazard LLC until 31 December 2006.

Reporting directly to the Group Chairman is Robert Diamond, the Group Chief Executive, who

is responsible for the strategic direction and planning of all Barclays operations. Varley wasappointed to the role in September 2004 prior to which he served as Deputy Chief Executive(JanuarySeptember 2004) and Group Finance Director (20002003).

In November 2009, John Varley realigned Barclays' businesses into Global Retail Banking andCorporate and Investment Banking and Wealth Management. Global Retail Banking comprisesUK Retail Banking, Barclaycard, the retail operations in Western Europe and Emerging Marketsbusinesses, and retail operations and technology. Corporate and Investment Banking and WealthManagement comprise Barclays Capital, Barclays Commercial Bank and Barclays Wealth. Thisresulted in certain changes to the leadership team and an expansion of the Group ExecutiveCommittee (ExCo).
http://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=BARChttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/quickquote.html?ticker=bcshttp://en.wikipedia.org/wiki/Bankhttp://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Forbeshttp://en.wikipedia.org/wiki/BNP_Paribashttp://en.wikipedia.org/wiki/BNP_Paribashttp://en.wikipedia.org/wiki/HSBChttp://en.wikipedia.org/wiki/Universal_bankhttp://en.wikipedia.org/wiki/Barclays_Capitalhttp://en.wikipedia.org/wiki/Barclays_Capitalhttp://en.wikipedia.org/wiki/Investment_bankinghttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Barclays_Wealthhttp://en.wikipedia.org/wiki/Wealth_managementhttp://en.wikipedia.org/wiki/Barclaycardhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Marcus_Agiushttp://en.wikipedia.org/wiki/Matthew_Barretthttp://en.wikipedia.org/wiki/BAA_PLChttp://en.wikipedia.org/wiki/Robert_Diamondhttp://en.wikipedia.org/wiki/Robert_Diamondhttp://en.wikipedia.org/wiki/BAA_PLChttp://en.wikipedia.org/wiki/Matthew_Barretthttp://en.wikipedia.org/wiki/Marcus_Agiushttp://en.wikipedia.org/wiki/Loanhttp://en.wikipedia.org/wiki/Credit_cardhttp://en.wikipedia.org/wiki/Barclaycardhttp://en.wikipedia.org/wiki/Wealth_managementhttp://en.wikipedia.org/wiki/Barclays_Wealthhttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Investment_bankinghttp://en.wikipedia.org/wiki/Barclays_Capitalhttp://en.wikipedia.org/wiki/Barclays_Capitalhttp://en.wikipedia.org/wiki/Universal_bankhttp://en.wikipedia.org/wiki/HSBChttp://en.wikipedia.org/wiki/BNP_Paribashttp://en.wikipedia.org/wiki/BNP_Paribashttp://en.wikipedia.org/wiki/Forbeshttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/Bankhttp://www.nyse.com/about/listed/quickquote.html?ticker=bcshttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=BARChttp://en.wikipedia.org/wiki/London_Stock_Exchange


15/25

Barclays Group Profile

Type Public limited company

Traded as LSE: BARC NYSE: BCS

IndustryBanking

Financial services

Founded 1690

Headquarters One Churchill Place,Canary Wharf, London, United Kingdom

Area served Worldwide

Key people

Marcus Agius

(Group Chairman)

Robert Diamond

(Group Chief Executive)

Products

Retail banking

Commercial banking

Investment banking

Investment management

Private Equity

Revenue 31.440 billion (2010)

Operating income 6.065 billion (2010)

Net income 6.1 billion (2011)

Employees Approximately 145,000 (2011)

Subsidiaries Barclays Bank PLC
http://en.wikipedia.org/wiki/Types_of_business_entityhttp://en.wikipedia.org/wiki/Public_limited_companyhttp://en.wikipedia.org/wiki/Public_limited_companyhttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=BARChttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.nyse.com/about/listed/quickquote.html?ticker=bcshttp://en.wikipedia.org/wiki/Financial_serviceshttp://en.wikipedia.org/wiki/One_Churchill_Placehttp://en.wikipedia.org/wiki/Canary_Wharfhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Marcus_Agiushttp://en.wikipedia.org/wiki/Marcus_Agiushttp://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/wiki/Robert_Diamondhttp://en.wikipedia.org/wiki/Chief_executive_officerhttp://en.wikipedia.org/wiki/Retail_bankinghttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Investment_bankinghttp://en.wikipedia.org/wiki/Investment_managementhttp://en.wikipedia.org/wiki/Private_Equityhttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/Barclays_Bank_PLChttp://en.wikipedia.org/wiki/File:Barclays_logo.svghttp://en.wikipedia.org/wiki/Barclays_Bank_PLChttp://en.wikipedia.org/wiki/Subsidiaryhttp://en.wikipedia.org/wiki/Net_incomehttp://en.wikipedia.org/wiki/Earnings_before_interest_and_taxeshttp://en.wikipedia.org/wiki/Pound_sterlinghttp://en.wikipedia.org/wiki/Private_Equityhttp://en.wikipedia.org/wiki/Investment_managementhttp://en.wikipedia.org/wiki/Investment_bankinghttp://en.wikipedia.org/wiki/Commercial_bankhttp://en.wikipedia.org/wiki/Retail_bankinghttp://en.wikipedia.org/wiki/Chief_executive_officerhttp://en.wikipedia.org/wiki/Robert_Diamondhttp://en.wikipedia.org/wiki/Chairmanhttp://en.wikipedia.org/wiki/Marcus_Agiushttp://en.wikipedia.org/wiki/United_Kingdomhttp://en.wikipedia.org/wiki/Londonhttp://en.wikipedia.org/wiki/Canary_Wharfhttp://en.wikipedia.org/wiki/One_Churchill_Placehttp://en.wikipedia.org/wiki/Financial_serviceshttp://www.nyse.com/about/listed/quickquote.html?ticker=bcshttp://en.wikipedia.org/wiki/New_York_Stock_Exchangehttp://www.londonstockexchange.com/exchange/prices-and-news/stocks/prices-search/stock-prices-search.html?nameCode=BARChttp://en.wikipedia.org/wiki/London_Stock_Exchangehttp://en.wikipedia.org/wiki/Ticker_symbolhttp://en.wikipedia.org/wiki/Public_limited_companyhttp://en.wikipedia.org/wiki/Types_of_business_entity


16/25

Barclays PLC

Barclays is a major global financial services provider engaged in retail and commercial banking,credit cards, investment banking, wealth management and investment management services, withan extensive international presence in Europe, the USA, Africa and Asia.

With over 300 years of history and expertise in banking, Barclays operates in over 50 countriesand employs over 140,000 people.

Barclays moves,lends, invests and protects money for over 49 million customers and clientsworldwide.

Barclays in India

Barclays Corporate India is led by Karan Bhagat, Country Head and Managing Director andservices the needs of over 400,000 clients and customers across the country.

Barclays opened its doors to commercial customers in November 2006 and today has a roster of

over 2000 clients. Barclays Corporate, India is focused on servicing the needs of large Indian

corporate, the corporate in the SME sector, and Indian companies looking to grow overseas.

Barclays offers its clients a broad spectrum of services including loans, deposits, payments &

cash management services, trade finance and treasury solutions.

The consumer banking division, launched in May 2007, offers primarily mass affluent customers

a growing suite of products and services. These include arguably the best Premier services

offering in the country, with products ranging from secured and unsecured lending to cash

management investment products and insurance. Barclays Corporate also offers Hello Money,

a revolutionary mobile banking service that combines technology and convenience.

Barclays Corporate currently has a network of over 50 distribution points through its network of

branches and Barclays Finance outlets across the country. Barclays Finance was launched in

March 2008, as a non banking finance company, to bolster the Barclays Corporate footprint in

the country.

Investing in the community is an important part of Barclays sustainability strategy. Globally,

Barclays has focused efforts on financial inclusion, entrepreneurship, education, enterprise and

helping people into employment.


17/25

Promoters and shareholding pattern:

Barclays Bank PLC is a public limited company registered in England and Wales under number1026167. The Bank was incorporated on 7th August 1925 under the Colonial Bank Act 1925 andon 4th October 1971 was registered as a company limited by shares under the Companies Acts

1948 to 1967. Pursuant to The Barclays Bank Act 1984, on 1st January 1985 the Bank was re-registered as a public limited company and its name was changed from Barclays BankInternational Limited to Barclays Bank PLC.

All of the issued ordinary share capital of Barclays Bank PLC is owned by Barclays PLC

1. Barclays PLC (the "Company") was notified on 14 September 2010 that, on 10 September 2010,

following the reinvestment of the interim dividend for the year ended 31 December 2010, the following

Directors/Persons Discharging Managerial Responsibilities ("PDMR") had received ordinary shares in

the Company as follows at a price of 324.20p per share:

Director/PDMR No. of shares received

M Agius 352

T Kalaris 9,882

2. The trustee of the Barclays Group Sharepurchase Plan ("Sharepurchase"), an HM Revenue and

Customs approved all employee share plan, informed the Company on 14 September 2010 that, on 10

September 2010 it had acquired, and now held as bare trustee of Sharepurchase, the following

ordinary shares in the Company, following the reinvestment of the interim dividend for the year ended

31 December 2010, for the following Directors/PDMRs at a price of 317.46p per share:


J Varley 13

C Lucas 7

M Harding 3

C Turner 16

3. The Company was notified on 14 September 2010 by the Administrators of the Dividend


18/25

Reinvestment Plan (the "Plan") that on 10 September 2010, following the re-investment of the interim

dividend for the year ended 31 December 2010, the following Directors/PDMRs (or their connected

persons) had received ordinary shares in the Company under the Plan at a price of 320.99p per share.

The number of shares received is as follows:


R Broadbent 45

C Lucas 311

M Harding 5

A Jenkins 41

C Turner 338

4. The independent nominee of the Barclays ESAS Nominee Arrangement notified the Company on 14

September 2010 that it had on 10 September 2010 exercised its discretion and re-invested the interim

dividend for the year end 31 December 2010 in ordinary shares of the Company at a price of 320.90p

per share for the following Directors/PDMRs. The number of shares received is as follows:


J Varley 370

R E Diamond Jr 4,718

J Del Missier 2,937

M Harding 77

T Kalaris 1,619

A Jenkins 181

R Le Blanc 460


19/25

R Ricci 735

C Turner 61

5. The independent nominee of the Barclays Corporate Nominee Arrangement notified the Company

on 14 September 2010 that it had on 10 September 2010 exercised its discretion and re-invested the

interim dividend for the year ended 31 December 2010 in ordinary shares of the Company at a price of

320.90p per share for the following Directors/PDMRs. The number of shares received is as follows:


J Varley 514

C Lucas 260

R Le Blanc 32

C Turner 255

The revised total shareholding for each Director following these transactions is as follows:

Director Beneficial Holding Non-Beneficial Holding

M Agius 114,716 -

R Broadbent 38,724 -

R E Diamond Jr 9,541,989 -

C Lucas 187,796 -

J Varley 980,422 -

HOLDER SHARES %OUT VALUE* REPORTED


20/25

DIMENSIONALFUNDADVISORSLP 7,621,859 0.25 125,227,143 JUN 30,2011

PRICE(T.ROWE)ASSOCIATESINC 6,909,639 0.23 113,525,368 JUN 30,2011

SCOUTINVESTMENTS,INC. 5,302,091 0.17 87,113,355 JUN 30,2011

ROBECO INVESTMENT MANAGEMENT,

INC.3,111,753 0.10 51,126,101 JUN 30,2011

MANAGED ACCOUNT ADVISORS,LLC 3,077,940 0.10 50,570,554 JUN 30,2011

BRANDESINVESTMENTPARTNERS

L.P.2,703,857 0.09 44,424,370 JUN 30,2011

ALLIANZ GLOBAL INVESTORS OF

AMERICA L.P.2,292,023 0.08 37,657,937 JUN 30,2011

JPMORGANCHASE&COMPANY 2,045,483 0.07 33,607,285 JUN 30,2011

FIRSTTRUSTADVISORSLP 1,579,013 0.05 25,943,183 JUN 30,2011

NORTHERNTRUSTCORPORATION 1,496,621 0.05 24,589,483 JUN 30,2011

Products and services

Barclays is a global financial services provider, engaged in retail and commercial banking, credit

cards, investment banking, wealth management and investment management services all over the

world.

Personal and premier banking

From basic accounts in developing markets to financial expertise in high street branches,Barclays services include credit cards, insurance, loans, mortgages and more.

Online Banking

Personal Banking

Premier Banking
http://group.barclays.com/What-we-do/Products-and-services/Personal-and-premier-bankinghttps://ibank.barclays.co.uk/olb/w/LoginMember.dohttp://www.barclays.co.uk/http://www.barclays.co.uk/premierhttp://www.barclays.co.uk/premierhttp://www.barclays.co.uk/https://ibank.barclays.co.uk/olb/w/LoginMember.dohttp://group.barclays.com/What-we-do/Products-and-services/Personal-and-premier-banking


21/25

Barclaycard

Corporate and business banking

Barclays supports businesses all over the world with services to suit their location, ambitions,challenges and scale, from local enterprises to multinational corporations.

Business banking

Barclays Corporate

Wealth management

Barclays Wealth focuses on private and intermediary clients worldwide, providing international

and private banking, investment management, fiduciary services, and brokerage.

Barclays Wealth

Offshore banking and investments

Services for clients moving to or working in the UK

History

2011Barclays agrees to acquire Eggs UK credit card assets, consisting of approximately

1.15 million credit card accounts with approximately 2.3bn of gross receivables.

2011 Barclays announces its 2010 Full Year Results, reporting profit before tax of 6.1bn.

2010 Barclays acquires Standard Life Bank.

2009Barclays completes its acquisition of PT Akita, a privately owned bank with ten outletsin three cities in Indonesia. The move makes Indonesia the 15th country to become

part of Barclays Global Retail and Commercial Banking Emerging Markets Business

Unit.

2008Barclays acquires Lehman Brothers North American investment banking and capital

markets businesses.
http://www.barclays.co.uk/premierhttp://www.barclays.co.uk/premierhttp://www.barclaycard.com/http://group.barclays.com/What-we-do/Products-and-services/Corporate-and-business-bankinghttp://www.barclays.com/business/http://www.barclayscorporate.com/http://group.barclays.com/What-we-do/Products-and-services/Wealth-managementhttp://www.barclayswealth.com/http://www.offshore.barclays.com/http://www.res-non-dom.barclays.com/http://www.res-non-dom.barclays.com/http://www.offshore.barclays.com/http://www.barclayswealth.com/http://group.barclays.com/What-we-do/Products-and-services/Wealth-managementhttp://www.barclayscorporate.com/http://www.barclays.com/business/http://group.barclays.com/What-we-do/Products-and-services/Corporate-and-business-bankinghttp://www.barclaycard.com/


22/25

2008Barclays acquires leading Russian bank Expobank. The bank becomes part of Barclays

Global Retail and Commercial Banking Emerging Markets Business Unit .

2003Barclays purchases wealth management firm Gerrard Management Services Ltd, to

become the UKs largest private client investment manager.

2003Banco Zaragozano, one of the largest private banks in Spain, is acquired, making

Barclays the countrys sixth largest bank.

2001

Barclays partners with five international banks to launch the first ever global ATM

alliance, providing over 40 million customers with free access to member banks

ATMS.

2000 Barclays acquires Woolwich, a leading mortgage bank and former building society.

1989 Barclays opens its first branch in India.

1985 Barclays UK and Barclays International are merged to form Barclays PLC.

1982 Barclays Bank Ltd becomes Barclays Bank PLC.

1981 A Barclays Representative Office opens in Beijing, China.

1981Barclays is the first foreign bank to file with the Securities and Exchange Commission

in Washington DC, USA.

1940 The Union Bank of Manchester is absorbed by Barclays.

1925

Barclays Bank (Dominion Colonial and Overseas - DCO) is established by the merger

of the Colonial Bank, the Anglo Egyptian Bank and the National Bank of South Africa.

This goes on to add businesses across Africa, the Middle East and the West Indies.

1922 Barclays Bank (Overseas) is incorporated. The name later changes to Barclays Bank(France).

1918The business amalgamates with the London Provincial and South Western Bank to

become one of the UKs big five banks.


23/25

1917 Barclay & Company Limited becomes Barclays Bank Limited.

1916 The organization takes over the United Counties Bank in the Midlands.

1902 The business obtains a listing on the London Stock Exchange.

1896The company joins 19 other private banking businesses to form Barclay & Company

Limited, with 182 branches and deposits of 26m.

1690John Freame and Thomas Gould start trading as goldsmith bankers in Lombard Street,

in the City of London.

Strategy and business model

Customer and client focus

Our customers and clients are at the centre of our strategy and business model. Putting their

needs first is essential to developing a long-term sustainable business.

Geographic spread

We aim to meet the needs of our clients and build a business with diverse revenue sources,

business segments, customer and clients and geographic exposure.

Product breadth

The most successful banks are those that serve their clients across all their needs though a wide

range of distribution channels.

Risk management


24/25

Effective risk management underpins all the commercial decisions we take. As a global universal

bank we are well placed to understand the risks our clients take because of the breadth and depth

of the relationships we have with them.

Financial discipline

As we look to execute our strategy and build the business, it is essential to ensure that we retainfinancial discipline required to deliver returns.

How barclays manage its performance

While business model and strategy determine the shape and

direction of Barclays, performance is managed against a

specific set of key performance indicators (KPIs).

These KPIs are closely aligned to our execution priorities in

order to deliver on our goal of generating top quartileshareholder returns over time.

Barclays also adopted multiple business model like other banks. It also adopted B2B B2CC2C.


25/25

Barclays.lalittiwari.dm10b19.Date15 September

Documents

Transcript of Barclays.lalittiwari.dm10b19.Date15 September