APRESENTATION

ON

INTRODUCTION

• Financial institutes deal with processing of money and other monetary transactions.

• Every financial institute goes through processes which are similar to the manufacturing process.

A CASE STUDY :

•IDBI stands for Industrial Development Bank Of India.

•Primarily set up to render monetary services to Indian industries.

•IDBI was found in the year 1964.

•It is an undertaking of the public sector.

THE WORKING OF IDBITHE WORKING OF IDBI

INPUTS OUTPUTPROCESS

INPUTS

• Every financial institute requires inputs.

• The main input for a bank is money in any form.

• For different banks, the sources of funds are different.

For IDBI, the main sources of income or inputs are :

1. FIXED DEPOSITS.

2. CURRENT DEPOSITS.

3. SAVINGS DEPOSITS.

Apart from these, the other sources are:

1. Interests on loans and borrowings.

2. Charges on services rendered.3. Overdrafts.

THE TANGIBLE INPUTS

The other inputs which are required in a financial institute are :

1. Manpower.2. Office and appliances.3. Machines and technology.

COMPARATIVE INPUT CLASSIFICATION

250.64

430.55 480

0

100

200

300

400

500

Monetary inputs (In Rs. Crores)

Fixed Deposits Current Deposits Savings Deposits

PROCESS

The intermediate processes of a financial institute includes:

1. Check clearance.2. Allocation of funds.3. Confirmation of accounts.4. Advertising.5. Negotiating instruments,

etc.

50

5

25

2510

3

05101520253035404550

Perc

enta

ge

% of Share

Parameter

Products

Advertisements

Manpower

Net-Banking

Phone banking

InvestmentSchemeNet work

THE PROCESS PARAMETERS OF IDBI BANK

EFFECTS OF ADVERTISEMENTS

100

67

43 40

0

20

40

60

80

100

No

of p

eopl

e re

mem

bere

d th

e ad

ds

No. of Days After ADDS

Positive Response

0-5 Days

6-10 Days

11-15 Days

More than 15 Days

OUTPUTS

The outputs of a financial institution are as follows :

1. Loans.2. Financial services.3. Security of savings.4. Instruments of negotiation, etc.

OUTPUT CLASSIFICATION

Loans 57%

Savings charges 13%

Interests. 17%

Charges on

negotiable instruments

13%

75%

25%95%

33% 22%

EFFICIENCY INTERNET BANKINGPRODUCT RANGE NETWORKPHONEBANKING

CUSTOMER’S RESPONSE

N=250

OUR FINDINGS

• The main source of money.• It pays an interest of 3.5% towards

savings deposits.• The main profits of the bank are

from these two accounts or deposits.

• The profit margin is less on Fixed Deposits.

• But fixed deposits act as a long term asset for the bank.

• The Annual turnover = Rs. 70,000 Crores.

LIMITATIONS

• Low rate of interest. • Low on marketing and advertising

strategies.• Competition from Private banks.

• The ambience and technology are not as developed.

• Lack of efficient human resources.

• Governed by rules and regulations.

RECOMMENDATIONS

• Necessary to open more branches.• More resources should be

allocated in the Indian market.• Short advertising campaign to

gain long term benefits with more intensity.

• The bank should alter the rates of interest.

• Pay more attention towards its FD’s.

• Make full use of technology.• Improve its production downtime.

CONCLUSION

THANK YOU …