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Agenda PreludeIs real IT transformation likely to take place?

Drivers to IT transformation

IT Performance Measurement and Process Improvement

Various technology-based initiatives undertaken by Indian BanksImplementation Status

Why Low Banking?

Customer Satisfaction

The Success Story of SBI. Giant Softwares in Banking Sector..

Conclusion

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Prelude

The dramatic events ushering in the new century from globalization and a final, major wave of consolidation to regulatory changes and technology

breakthroughs are compelling banks to turn theirfocus toward efficiency and country relationshipdevelopment. *

*Goliath Industry and Market Reports on Bank Systems and Technology

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Is real IT transformation likely to take place?

Three converging forces appear to make it unavoidable:

Banks spreading across geographies.

Financial transactions are commoditized.Regulatory demands are unprecedented.

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Drivers to IT transformation

The next 10 years will be defined by:

Accelerated expansion

Process efficiency

Greater Country sophistication

More intense regulatory demands

Opening up markets in existing and new member countries

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IT Performance Measurement and ProcessImprovementThe areas where IT has most effectively been able tocontribute are:

TreasuryRetailCardsWholesale (including merchant banking)

Payment and Settlements

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Various technology-based initiatives undertakenby Indian Banks

Source: KPMG Survey Report, 2011

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Implementation Status

Source: KPMG Survey Report ,2010

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Why Low Banking?

Source: KPMG Survey Report ,2011

Main Reasonfor LowBanking

Penetration

Low level

of Awareness

Lack of Access toBankingFacilities

LowIncome

Unemployment &

Underemployment

Financial&

Educational Illiteracy

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Customer Satisfaction

Transparency Regulatory Requirements

Unique Identity Reaching Customers

CustomerSatisfaction

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The Success Storyof SBI.

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A glimpse of SBI...

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Profile of SBIBank Name Headquarter(City, State) Branches ATMs

State Bank of India Mumbai, Maharashtra 10,000 8500

State Bank of Bikaner &Jaipur

Jaipur, Rajasthan 833 336

State Bank of Hyderabad Hyderabad, Andhra Pradesh 965 450

State Bank of Indore Indore, Madhya Pradesh 301 235

State Bank of Mysore Bangalore, Karnatka 654 247

State Bank of Patiala Patiala, Punjab 766 353

State Bank of Travancore Trivendrum, Kerala 706 331

Source: State Bank of India Group

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Adoption of Core Banking....

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Time Line.

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Giant Softwares in Banking Sector..

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Conclusion

Core Banking has become an essentialcharacter for banking operations today.

Presence of private banks like ICICI,HDFCcompellsPSU banks to be technologically updated.

Adoption of Core Banking brought positivereturns for SBI despite the initial investmentbeing too high.

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