Download - Best Banks in India
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GROWTH
Deposits Loans and Advances
Fee Income
Operating Profits Market Share
Deposits
CASA
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SIZE
Deposits Operating Profit
Balance Sheet
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STRENGTHS
C-Capital Adequacyo CAR
o CAR Tier-1
A- Asset Qualityo Ratio of priority sector advances to total advances
o Ratio of secured advances to total advances
o Ratio of net NPA To net advances
M-Management Qualityo Business per employee (in Rupees Lakh)
o
Profit per employee (in Rupees Lakh)o Return on equity
o Return on advances
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STRENGTHS
o E- Earnings Quality
o Ratio of interest income to total assets
o Ratio of net interest income to total assets (Net Interest
Margin)
o Ratio of operating profits to total assets
o L-Liquidityo Return on assets
o Cash - Deposit Ratio
o Credit - Deposit Ratio
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SWOT ANALYSIS
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Strengths
HDFC bank is the second largest private banking sector in India having 2,201
branches and 7,110 ATMs HDFC bank is located in 1,174 cities in India and has more than 800 locations toserve customers through Telephone banking
The banks ATM card is compatible with all domestic and internationalVisa/Master card, Visa Electron/ Maestro, Plus/cirus and American Express.This is one reason for HDFC cards to be the most preferred card for shoppingand online transactions
HDFC bank has the high degree of customer satisfaction when compared toother private banks
The attrition rate in HDFC is low and it is one of the best places to work inprivate banking sector
HDFC has lots of awards and recognition, it has received Best Bank awardfrom various financial rating institutions like Dun and Bradstreet, Financial
express, Euromoney awards for excellence, Finance Asia country awards etc HDFC has good financial advisors in terms of guiding customers towards right
investments
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Weakness
HDFC bank doesnt have strong presence in Rural
areas, where as ICICI bank its direct competitor isexpanding in rural market
HDFC cannot enjoy first mover advantage in rural areas.
Rural people are hard core loyals in terms of banking
services. HDFC lacks in aggressive marketing strategies like ICICI
The bank focuses mostly on high end clients
Some of the banks product categories lack in
performance and doesnt have reach in the market
The share prices of HDFC are often fluctuating causing
uncertainty for the investors
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Opportunities
HDFC bank has better asset quality parameters
over government banks, hence the profit growth islikely to increase
The companies in large and SME are growing atvery fast pace. HDFC has good reputation in terms
of maintaining corporate salary accounts HDFC bank has improved its bad debts portfolioand the recovery of bad debts are high whencompared to government banks
HDFC has very good opportunities in abroad
Greater scope for acquisitions and strategicalliances due to strong financial position
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Threats
HDFCs nonperforming assets (NPA) increased
from 0.18 % to 0.20%. Though it is a slight variationits not a good sign for the financial health of thebank
The non banking financial companies and new age
banks are increasing in India The HDFC is not able to expand its market share asICICI imposes major threat
The government banks are trying to modernize tocompete with private banks
RBI has opened up to 74% for foreign banks toinvest in Indian market
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SWOT ANALYSIS
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Strengths
The bank has a network of 1,493 domestic branches and 8,324
ATMs
The bank has its presence in 971 cities and towns
The banks financial positions grows at a rate of 20% every year
which is a major positive sign for any bank
The companys net profit is Q3FY12 is 1,102.27 which has a
increase of 25.19% growth compared to 2011
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Weaknesses
Majorly they concentrated in corporate, wholesale banking, treasury
services, retail banking Foreign branches constitute only 8% of total assets
Very recently the bank started focusing its attention towards personalbanking and rural areas
The share rates of AXIS bank is constantly fluctuating in highermargins.
There are many fraudulent activities involved in credit cards.
Their financial consultants are not wise enough to guide thecustomers towards right investments.
Customer service has to improve a lot in order to be in race withother major players.
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Opportunities
Acquisitions to fill gap In 2009, Alliance with Motilal Oswal for online trading for 10 million customers
In 2010, acquired Enam Securities Pvt Ltd broking and investment banking
In Sep 2009, SEBI approved Axis Asset Management Co. for mutual fund business
No. of e-transactions increased from 0.7 million to around 2 million
Geographical expansion to rural market 80% of them have no access to formal lending
Now number of branches increased to 1493 from 339.
Last quarter there were 48 new branches opened across the Nation
Since its a new age banking there are lot of opportunities to have the advancetechnicalities in banking solutions compared to existing major players
The assets in their international operations are growing at a very faster pace with agrowth rate of 9%.
The concept of ETM (Everywhere teller machine) by AXIS Bank had a good response in
terms of attracting new customers in personal banking segment
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Threats
Since 2009, RBI has increased CRR by 100 basis points
Increased repo rate reverse repo rate by 50 points 11
times of late
Increasing popularity of QIPs due to ease in fund raising
RBI allowed foreign banks to invest up to 74% in Indian
banking Government schemes are most often serviced only by
govern banks like SBI ,Indian Banks, Punjab National
Bank etc
ICICI and HDFC are imposing strong threats in terms oftheir expansion in customer base by their aggressive
marketing strategies
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STRENGTHS
The capital adequacy ratio of YBL at 17.9% is well above
minimum requirements of 9%
Annualised RoA has been at or above 1.5% over last 4
years
Annualised RoE has been at or above 20% over last 4
years.
Over the years, YBL has brought down the cost to income
ratios to 36%-38%, far below the industry average.
Cost to income ratio of 45% and
High profitability per employee as compared to peers.
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WEAKNESSES
Small player in the banking space.
low market share - network of branches (~360)
relatively smaller than its peers.
brand awareness among retail customers is lower.
relatively lower CASA base due to higher exposure
to corporate banking.
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OPPORTUNITIES
Savings rate deregulation by the RBI has offered an
opportunity to gain significant savings account market shareby offering better rates and services to customers.
entry into new product or segments like retail assets - the
ability to cross sell product to retail customers would
enhance profitability over the long run. The large middle class population of India.
Smaller towns and rural India still provide a huge untapped
potential for expansion
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THREATS
The tight monetary policy adopted by the RBI with a view
to tame inflation could dampen corporate credit off take.
Overall business could also be impacted due to reduction in
asset quality and rise in NPAs.
Expansion may lead to increase in costs and overall
reduction in operating profit.
Recent regulatory changes including revised priority sector
norms, adoption of BASEL III norms could result in lower
profitability for the banking system in general.
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QUESTION
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THANK YOU
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