Banking
Summary:
The Indian banking system consists of 12 public sector banks, 22 private sector banks, 46 foreign banks, 56 regional rural banks, 1485 urban cooperative banks and 96,000 rural cooperative banks in addition to cooperative credit institutions.
Govt to set up Asset Restructuring and Management Companies to take over stressed assets of banks, thereby facilitating operational ease
Increased emphasis on digital payments and UPI, and initiatives like the PM Jan Dhan Yojana has increased the reach of banking sector
The creation of new banking entities like 'Payment Banks' and 'Small Business Banks' made banking infrastructure more robust.
Step 1
Marketing
Advertising
Branding
Sales Support
Step 2
Sales Multichannel
Management
Acquisition
Offering
Market Expansion
Step 3
Customer & Stakeholder Relationship Management
Focus on specific groups (NRIs, HNIs)
Regulatory Compliance
Step 4
Product
Product Offering
Product Expansion
Step 5
Transaction
Payments
Clearings & Settlement
Trading
Cost Drivers
Service costs such as transaction services, ATM services
Employee Benefits
Cost of funds/resourced borrowed
Operational efficiency of branches
Non-performing assets
Asset Liability Mismatch
All write-offs and provisions
Infrastructure Costs (physical & Tech)
Revenue Drivers
Loan Outstanding (Lending)
Investment Yield
Ancillary Services (Guarantees, Letter of Credit etc.)
Foreign Exchange Business
Asset Turnover
Customer mix
Branch Network
Product Mix & Differentiation
Growth Drivers
Economic growth of country
Government/RBI Regulations
Geographical expansion of banking
Technological Innovations (Digitization)
Infrastructure growth
Big projects approvals, Financial Literacy
Key Customers
Individuals
HNI Consumers
Micro, Small & Medium Businesses
Large Businesses
Govt and govt agencies
Key Players
SBI
HDFC
ICICI
PNB
Channels
Largely face to face interactions (branches etc.)
Online banking, ATM services growing
Mobile Banking growing rapidly
Business Correspondents (3rd parties engaged where branches are not available)