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Banking & Insurance Professionals

 
Started by : Swati Raut, Product Manager, Aviva   07 23 2010 09:46:21 +0000
Industry : BankingFunctional Area : India(Markets)
Keywords : banking trends
Activity:  102 views;  last activity : 09 14 2010 16:15:32 +0000

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The Indian banking industry is currently in a transition phase. On the one hand, the public sector banks, which are the mainstay of the Indian banking system, are in the process of consolidating their position by capitalising on the strength of their huge networks and customer bases. On the other, the private sector banks are venturing into a whole new game of mergers and acquisitions to expand their bases.

So users, what are the top 10 banking trends?

 
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1 2 3 4 5
1 Credit Delivery System
2 looking for mergers and acqusiiton
3 Offering a wide variety of services
4 Spread out your risk
5 CHANGE IN TREND
6 more focus on NPA's
7 Marketing Insurance instead of FDs
8 looking for mergers & aquusition
9 ASBA Accounts
10 One-stop solution for all financial needs
11 CASA and NonInterest Income

Credit Delivery System

idea posted by Swati Raut Product Manager, Aviva

RBI’s credit policy for the first half has underlined the need to accelerate credit flow to productive sectors, particularly to agriculture and small scale industries. Though there has been significant increase in the total volume of credit flowing to these sectors, sanctioning credit to these sectors is perceived to be too complex and time-consuming. Banks have therefore been advised by the RBI to implement the recommendations made by the one-man committee under the Chairmanship of Shri R.V.Gupta in regard to several procedural modifications on agricultural credit. Banks have been advised to delegate sufficient powers to their branch managers. To facilitate quicker submission of application for and delivery of loan, the Indian Banks Association has been requested to frame simpler application forms for agricultural loans.

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by m k mathai, senior manager, canara bank , broadway ekm  | 09 14 2010 16:15:32 +0000

simplify the rules for rural lending. allow banks to lend like the local money lender in the rural areas

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by puneet , Manager Admin  | 07 25 2010 13:22:58 +0000

good source of knowledge.

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looking for mergers and acqusiiton

idea posted by Vivekanand Research Consultant, Management Development Institute
always now banks are looking for consolidation or mergers
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by Sathish Suvarna, Retail Distribution, SBI  | 07 26 2010 10:53:07 +0000

PSUs Banks are the major contributors to the economic growth of modern India; PSU Banks have played a significant role in building the country’s infrastructure, enhancing national economic development, generating surpluses for capital formation and contributing to government revenue. Major areas - essential infrastructure goods and services, exploration and exploitation of oil and mineral resources, technology development and building of manufacturing capabilities in areas which are crucial in the long term development of the economy. Despite large-scale privatization across the world, public enterprises remain an important aspect of the economic activity in varying degrees. PSU Banks which have had strong financial results over many years and could tide over the recent turmoil faced by the financial industry especially the banking sector

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Offering a wide variety of services

idea posted by nitin jain Chartered Accountant

At the beginning of the 21st century, the biggest banks in the industrial world have become complex financial organizations that offer a wide variety of services to international markets and control billions of dollars in cash and assets. Supported by the latest technology, banks are working to identify new business niches, to develop customized services, to implement innovative strategies and to capture new market opportunities. With further globalization, consolidation, deregulation and diversification of the financial industry, the banking sector will become even more complex.

Although, the banking industry does not operate in the same manner all over the world, most bankers think about corporate clients in terms of the following:

  • Commercial banking - banking that covers services such as cash management (money transfers, payroll services, bank reconcilement), credit services (asset-based financing, lines of credits, commercial loans or commercial real estate loans), deposit services (checking or savings account services) and foreign exchange;
  • Investment banking - banking that covers an array of services from asset securitization, coverage of mergers, acquisitions and corporate restructuring to securities underwriting, equity private placements and placements of debt securities with institutional investors.

Over the past decade there has been an increasing convergence between the activities of investment and commercial banks, because of the deregulation of the financial sector. Today, some investment and commercial banking institutions compete directly in money market operations, private placements, project finance, bonds underwriting and financial advisory work.

Furthermore, the modern banking industry has brought greater business diversification. Some banks in the industrialized world are entering into investments, underwriting of securities, portfolio management and the insurance businesses. Taken together, these changes have made banks an even more important entity in the global business community.

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Spread out your risk

idea posted by nitin jain Chartered Accountant

Spread out your risk. You should not put all your money in high risk stocks. Try some lower risks and some higher risks. This is the best way to protect your money.

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CHANGE IN TREND

idea posted by s.baalu Consultant, XYZ LTD

IN ADDITION TO VARIOUS CHANGES MENTIONED BY FELLOW MEMBERS THERE IS A SEA CHANGE IN THE BANKING SYSTEM.CONTRARY TO THE YESTERYEARS` TREND OF VERY SMALL %  OF PEOPLE USING BANKS, A VERY GOOD % OF PEOPLE HAVE STARTED USING BANKS FOR VARIOUS PURPOSES,BANKS HAVE STARTED COMING CLOSER TO THE CUSTOMERS,ARE ON THE LOOK OUT FOR RELIABLE AND WORTHY CUSTOMERS.CUSTOMERS HAVE STARTED GETTING MORE BENEFITS BECAUSE OF THE COMPETITION AMONG ALL THE BANKS.

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more focus on NPA's

idea posted by Tushar Kamble Assistant Manager, AXIS Bank

In a recent interview of new central bank of india's head(i think Mr Srinivas),who has shown outstanding growth rate of more than 200% suggested that banks don't focus much on NON PERFORMING ASSETS,which increases their liablities.

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Marketing Insurance instead of FDs

idea posted by vijayasaravanan Partner, MS Contractors and Amway Business Owner

Banks are focusing on insurance and some even sell Ulips like deposits. Many will loose  customers in near future. Happy Mis selling.

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looking for mergers & aquusition

idea posted by arun kasar Sales/BD Manager, caprihans india ltd
companies should look for good firm relation
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ASBA Accounts

idea posted by Sandeep Kule Managing Director, Endeavor Finance & Tax Consultant

The new trend in Indian Banks started recently , a new feature of ASBA account is worth adding. ACCOUNT SUPPORTED BY BLOCKED AMOUNT (ASBA) for IPO.

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One-stop solution for all financial needs

idea posted by Raju V P Senior Manager, an International Bank

Traditionally, Banks were focussing on taking deposits and giving loans.  Slowly it was expanded to cover other services like safe deposit lockers, tax collections, etc.  Today Banks are striving to become one-stop solution - from selling insurance policies to acting as custodian to the shares to home finance, venture capital, investment advisory services, merger and acquisitions, managers to capital issues, project finance - you name it, they are in it.

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CASA and NonInterest Income

idea posted by kanukurthy sudershanrao Operations Manager, Andhra Bank

Banks are now concentrating on Current Accounts and Savings Accounts (CASA).  These help in increasing the customer base and also are a source of cheaper funds.  The Other area of concentration is increasing of Non-Interest Income by canvassing mutual funds, Insurance products etcetera.

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