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Organizational Study of Dhanlaxmi Bank

CHAPTER-1 INTRODUCTION

Organizational Study of Dhanlaxmi Bank

REVIEW OF LITERATURE: RETAIL BANKING DEFINITION: Retail banking is typical mass-market banking where individual customers use local branches of larger commercial banks. Services offered include: savings and checking accounts, mortgages, personal loans, debit cards, credit cards, and so

The Retail Banking environment today is changing fast. The changing customer demographics demands to create a differentiated application based on scalable technology, improved service and banking convenience. Higher penetration of technology and increase in global literacy levels has set up the expectations of the customer higher than never before. Increasing use of modern technology has further enhanced reach and accessibility. The market today gives us a challenge to provide multiple and innovative contemporary services to the customer through a consolidated window as so to ensure that the banks customer gets Uniformity and Consistency of service delivery across time and at every touch point across all channels. The pace of innovation is accelerating and security threat has become prime of all electronic transactions. High cost structure rendering mass-market servicing is prohibitively expensive.
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Organizational Study of Dhanlaxmi Bank


Present day tech-savvy bankers are now more looking at reduction in their operating costs by adopting scalable and secure technology thereby reducing the response time to their customers so as to improve their client base and economies of scale. The solution lies to market demands and challenges lies in innovation of new offering with minimum dependence on branches a multi-channel bank and to eliminate the disadvantage of an inadequate branch network. Generation of leads to cross sell and creating additional revenues with utmost customer satisfaction has become focal point worldwide for the success of a Bank. Todays retail banking sector is characterized by three basic characteristics: Multiple products (deposits, credit cards, insurance, investments and securities) Multiple channels of distribution (call center, branch, internet) Multiple customer groups (consumer, small business, and corporate).

STRATEGIES FOR INCREASING RETAIL BANKING BUSINESS

Constant

product innovation to match the requirements of the

customer segments The customer database available with the banks is the best source of their demographic and financial information and can be used by the banks for targeting certain customer segments for new or modified product. The banks should come out with new products in the area of
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Organizational Study of Dhanlaxmi Bank


securities, mutual funds and insurance.

Quality service and quickness in delivery


As most of the banks are offering retail products of similar nature, the customers can easily switchover to the one, which offers better service at comparatively lower costs. The quality of service that banks offer and the experience that clients have, matter the most. Hence, to retain the customers, banks have to come out with competitive products satisfying the desires of the customers at the click of a button.

Introduction of new delivery channels


Retail customers like to interface with their bank through multiple channels. Therefore, banks should try to give high quality service across all service channels like branches, Internet, ATMs, etc.

Tapping
business

of unexploited potential and increasing the volume of

This will compensate for the thin margins. The Indian retail banking market still remains largely untapped giving a scope for growth to the banks and financial institutions. With changing psyche of Indian consumers, who are now comfortable with the idea of availing loans for their personal needs, banks have tremendous potential lying in this segment. Marketing departments of the banks be geared up and special training be imparted to them so that banks are successful in grabbing more and more of retail business in the market.
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Organizational Study of Dhanlaxmi Bank Infrastructure outsourcing


This will help in lowering the cost of service channels combined with quality and quickness.

Detail market research


Banks may go for detail market research, which will help them in knowing what their competitors are offering to their clients. This will enable them to have an edge over their competitors and increase their share in retail banking pie by offering better products and services.

Cross-selling of products
PSBs have an added advantage of having a wide network of branches, which gives them an opportunity to sell third-party products through these branches.

Business process outsourcing


Outsourcing of requirements would not only save cost and time but would help the banks in concentrating on the core business area. Banks can devote more time for marketing, customer service and brand building. For example, Management of ATMs can be outsourced. This will save the banks from dealing with the intricacies of technology.

Tie-up arrangements
PSBs with regional concentration can reap the benefit of reaching customers across the country by entering into strategic alliance with other such banks with intensive presence in other regions. In the
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present regime of falling interest and stiff competition, banks are aware that it is finally the retail banking which will enable them to hold the head above water. Hence, banks should make all out efforts to boost the retail banking by recognizing the needs of the customers. It is essential that banks would be imaginative in predicting the customers' expectations in the ever-changing tastes and environments. It is the innovative and competitive products coupled with high quality care for clients will only hold the key to success in this area. In short, bankers have to run very fast even to stay where they are now. It is the survival of the fastest now and not only survival of the fittest.

EMERGING ISSUES IN HANDLING RETAIL BANKING

KNOWING CUSTOMER
Know your Customer is a concept which is easier said than practiced. Banks face several hurdles in achieving this. In order to that the product lines are targeted at the right customers-present and prospective-it is imperative that an integrated view of customers is available to the banks. The benefits flowing out of cross-selling and up-selling will remain a far cry in the absence of this vital input. In this regard the customer databases available with most of the public sector banks, if not all, remain far from being enviable. What needs to be done is setting up of a robust data warehouse where from meaningful data on customers, their preferences, there spending patterns, etc. can be mined. Cleansing of existing data is the first step in this direction. PSBs have a long way to go in this regard.

Organizational Study of Dhanlaxmi Bank TECHNOLOGY ISSUES


Retail banking calls for huge investments in technology. Whether it is setting up of a Customer Relationship Management System or Establishing Loan Process Automation or providing anytime, anywhere convenience to the vast number of customers or establishing channel/product/customer profitability, technology plays a pivotal role. And it is a long haul. The Issues involved include adoption of the right technology at the right time and at the same time ensuring volumes and margins to sustain the investments. It is pertinent to remember that Citibank, known for its deployment of technology, took nearly a decade to make profits in credit cards. It has also to be added in the same breath that without adequate technology support, it would be well nigh possible to administer the growing retail portfolio without allowing its health to deteriorate. Further, the key to reduction in transaction costs simultaneously with increase in ability to handle huge volumes of business lies only in technology adoption. PSBs are on their way to catch up with the technology much required for the success of retail banking efforts. Lack of connectivity, stand alone models, concept of branch customer as against bank customer, lack of convergence amongst available channels, absence of customer profiling, lack of proper decision support systems, etc., are a few deficiencies that are being overcome in a great way. However, the initiatives in this regard should include creating flexible computing architecture amenable to changes and having scalability, a futuristic approach, networking across channels, development of a strong Customer Information Systems (CIS) and adopting Customer

Organizational Study of Dhanlaxmi Bank


Relationship Management (CRM) models for getting a 360 degree view of the customer.

ORGANIZATIONAL

ALIGNMENT

It is of utmost importance that the culture and practices of an institution support its stated goals. Having decided to take a plunge into retail banking, banks need to have a well defined business strategy based on the competitive of the bank and its potential. Creation of a proper organization structure and business operating models which would facilitate easy work flow are the needs of the hour. The need for building the organizational capacity needed to achieve the desired results cannot be overstated. This would mean a strong commitment at all levels, intensive training of the rank and file, putting in place a proper incentive scheme, etc. As a part of organizational alignment, there is also the need for setting up of an effective Corporate Marketing Division. Most of the public sector banks have only publicity departments and not marketing setup. A fully fledged marketing department or division would help in evolving a brand strategy, address the issue of alienation from the upwardly mobile, high net worth customer group and improve the recall value of the institution and its products by arresting the trend of getting receded from public memory. The much needed tie-ups with

manufacturers/distributors/builders will also facilitated smoothly. It is time to break the myth PSBs are not customer friendly. The attention is to be diverted to vast databases of customers lying with the PSBs till unexploited for marketing.
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PRODUCT INNOVATION
Product innovation continues to be yet another major challenge. Even though bank after bank is coming out with new products, not all are successful. What is of crucial importance is the need to understand the difference between novelty and innovation? Peter Drucker in his path breaking book: Management Challenges for the 21st Century has in fact sounded a word of caution: innovation that is not in tune with the strategic realities will not work; confusing novelty with innovation (should be avoided), test of innovation is that it creates value; novelty creates only amusement. The days of selling the products available in the shelves are gone. Banks need to innovate products suiting the needs and requirements of different types of customers. Revisiting the

features of the existing products to continue to keep them on demand should not also be lost sight of.

PRICING OF PRODUCT
The next challenge is to have appropriate policies in place. The industry today is witnessing a price war, with each bank wanting to have a larger slice of the cake that is the market, without much of a scientific study into the cost of funds involved, margins, etc. The strategy of each player in the market seems to be: under cutting others and wooing the clients of others. Most of the banks that use rating models for

determining the health of the retail portfolio do not use them for pricing the products. The much needed transparency in pricing is also missing, with many hidden charges. There is a tendency, at least on the part of few to camouflage the price. The situation cannot remain his way for

Organizational Study of Dhanlaxmi Bank


long. This will be one issue that will be gaining importance in the near future.

Retail Banking in India With a jump in the Indian economy from a manufacturing sector, that never really took off, to a nascent service sector, Banking as a whole is undergoing a change. A larger option for the consumer is getting translated into a larger demand for financial products and customisation of services is fast becoming the norm than a competitive advantage. With the Retail banking sector expected to grow at a rate of 30% [Chanda Kochhar, ED, ICICI Bank] players are focussing more and more on the Retail and are waking up to the potential of this sector of banking. At the same time, the banking sector as a whole is seeing structural changes in regulatory frameworks and securitisation and stringent NPA norms expected to be in place by 2004 means the faster one adapts to these changing dynamics, the faster is one expected to gain the advantage. In this article, we try to study the reasons behind the euphemism regarding the Retail-focus of the Indian banks and try to assess how much of it is worth the attention that it is attracting.

Potential for Retail in India: Is sky the limit? The Indian players are bullish on the Retail business and this is not totally unfounded. There are two main reasons behind this. Firstly, it is now undeniable that the face of the Indian consumer is changing. This is
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reflected in a change in the urban household income pattern. The direct fallout of such a change will be the consumption patterns and hence the banking habits of Indians, which will now be skewed towards Retail products. At the same time, India compares pretty poorly with the other economies of the world that are now becoming comparable in terms of spending patterns with the opening up of our economy. For instance, while the total outstanding Retail loans in Taiwan is around 41% of GDP, the figure in India stands at less than 5%. The comparison with the West is even more staggering. Another comparison that is natural when comparing Retail sectors is the use of credit cards. Here also, the potential lies in the fact that of all the consumer expenditure in India in 2001, less than 1% was through plastic, the corresponding US figure standing at 18%.

But how competitive are the players? The fact that the statistics reveal a huge potential also brings with it a threat that is true for any sector of a country that is opening up. Just how competitive are our banks? Is the threat of getting drubbed by foreign competition real? To analyze this, one needs to get into the shoes of the foreign banks. In other words, how do they see us? Are we good takeover targets? Going by international standards, a large portion of the Indian population is simply not bankable taking profitability into consideration. On the other hand, the financial services market is highly over-leveraged in India. Competition is fierce, particularly from local private banks such as HDFC and ICICI, in the business of home, car and consumer loans. There, precisely lie the pitfalls of such explosive
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growth. All banks are targeting the fluffiest segment i.e. the upwardly mobile urban salaried class. Although the players are spreading their operations into segments like self- employed and the semi-urban rich, it is an open secret that the big city Indian yuppies form the most profitable segment. Over-dependence on this segment is bound to bring in inflexibility in the business.

INDUSTRY PROFILE

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BANKING BASICS The Indian banking industry which is governed by the Banking Regulation Act of India, 1949 can be broadly classified into two major categories. Scheduled Banks Non-scheduled Banks

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RESERVE BANK OF INDIA (CENTRAL BANK AND SUPREME MONETORY AUTHORITY) SCHEDULED BANKS (96)

COMMERCIAL BANKS

CO-OPERATIVE BANKS

REGIONA FOREIGN L RURAL BANKS BANKS (40) (196)

PUBLIC SECTOR BANKS (27)

PRIVATE SECTOR BANKS (30)

URBAN COOPERATIVE BANKS (52)

SBI & ASSOCIATE BANKS (8)

OLD PRIVATE BANKS (22)

STATE COOPERATIVE BANKS (16)

OTHER NATIONALIZED BANKS


(19)

NEW PRIVATE BANKS (8)

FIGURE:-1 STRUCTRE OF INDIAN BANKING INDUSTRY Scheduled banks comprise commercial banks and the co-operative banks. In terms of ownership commercial banks can be further grouped into nationalized banks, the State Bank of India and its group banks, regional rural banks and private sector banks(old/new domestic and foreign) Banking regulation act of India, 1949 defines banking as accepting, for the purpose of lending or investment of deposits of money from the

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public, repayable on demand or otherwise and withdraw able by cheques, draft and order or otherwise.

In addition, Banks are allowed to perform certain activities which are ancillary to this business of accepting deposits and lending. A banks relationship with the public, therefore, revolves around accepting deposit and lending money. Another activity which is assuming increasing importance is transfer of money, both domestic and foreign, from one place to another. This activity is generally known as Remittance Business in banking parlance. The so called forex (foreign exchange) is largely a part of remittance. It involves buying and selling o0f foreign currencies. The law governing Banking Activities in India is called Negotiable Instrument Act 1881. The banking activities can be classified as: Accepting deposits from public/others Transferring money from one place to another Acting as trustees Keeping valuable in safe custody Collection business Deposits Loans Lending money to public HISTORY Banking in India originated in the last decades of the 18th century with The General Bank of India which came into existence in 1786. This was followed by The Bank of Hindustan. Both of these are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta (later Bank of Bengal) in June 1806. A
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couple of decades late, foreign banks like Credit Lyonnais started their Calcutta operations in 1850s. The first fully Indian owned bank was The Allahabad Bank, which was established in 1865.

By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India in 1906, in Mumbai. Both these were founded under private ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After Indias independence in 1947, the

Reserve Bank of India was nationalized and given broader powers.

POST-INDEPENDENCE The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal, paralyzing banking activities for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included:

In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India.

The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors.

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However, despite these provisions, control and regulations, banks in India except the State Bank of India, continued to be owned and operated by private persons. This changed with the nationalization of major banks in India on 19th July 1969. NATIONALIZATION By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the possibility to nationalize the banking industry. The Prime Minister of India expressed the intention of the GOI in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization." After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy. LIBERALISATION In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks.
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CURRENT SITUATION Currently, India has 96 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake), 31 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a combined network of over 53,000 branches and 49,000 ATMs. The industry is currently in a transition phase. On the one hand, the Public Sector Banks which are the mainstay of Indian banking system, are in the process of shedding their flab in terms of excessive manpower, excessive Non Performing Assets (NPAs) and excessive governmental equity, while on the other hand the private sector banks are consolidating themselves through mergers and acquisitions. With he growth in the Indian economy which is expected to be strong for services sector, the demand for the banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect mergers and acquisitions, takeovers and asset sales. Banking industry has completely moulded the system with some great technological developments and few revolutionary thoughts. Introduction of MIS (MANAGEMENT INFORMATION SYSTEM), HRIS (HUMAN RESOURCE INFORMATION SYSTEM), ERP SYSTEMS has made this system quick and efficient. Investment is the part of services sector which is facing a tough competition these days. Both the public and private sector banking institutions are the major players.

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The scenario which they have brought up in the market through their unpretentious hardworking and high quality work, has made a cluster breaking entry in the era of competition.

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TRADITIONAL BANKING Traditionally the relationship between bank and its customer has been on a one-to-one level via the branch network. This was put into operation with clearing and design making responsibilities at the individual branch level. The head office had the responsibility for the overall clearing network, the size of the branch network and the training of staff in the branch network. The branch monitored the organizations performance and set the decision making parameters, but the information available to both branch and their customers was limited to one geographical location.

Customer

Customer

Customer

Bank Branch Clearing Decision

Bank Branch Clearing Decision

Bank Branch Clearing Decision

Central clearing

Central clearing

FIGURE:-2 Traditional banking structure

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RELATIONSHIP BANKING The modern bank cannot rely on its branch network alone. Customers are now demanding new, more convenient, delivery systems. And services such as internet banking have a dual role for the customer thus increasing the productivity of this sector. They provide traditional banking service, but additionally offer much greater access to information on their account and on the banks many other services. To do this banking has to create information layers, which can be accessed both by bank staff as well as by the customers themselves. The use of interactive electronic links via the internet can go a long way in providing the customers with greater deal of information about both their financial situation and about the services offered by the bank. FIGURE:-3-RELATIONSHIP BANKING
Customers

Telephone, Branch, Electronic Banking, etc.

Shared Information

Clearing systems

Head Office Risk Monitoring

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Financial Statement Analysis : Financial Statements Analysis is largely a study of relationship among the various financial factors in a business as disclosed by a single set of statements and a study of trends of these factors as shown in a series of statements this is according to Myer.

Analysis is the process of critically examining in detail accounting information given in the financial statements. For the purpose of financial analysis, individual items are studied, their

interrelationships with other related figures established, the data is sometimes rearranged to have better understanding of the information with the help of different techniques or tools for the purpose. Analyzing financial statements is a process of evaluating relationships between component parts of financial statements to obtain a better understanding of firms position and performance. Objectives Of Analysis Of The Financial Statements : The present and future earnings capacity or profitability of the concern. The operational efficiency of the concern as a whole and of its various parts or departments.

The short term and long term solvency of the concern for the benefit of the debenture holders and trade credit.
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The comparative study in regard to one firm with another firm or one department with another department. The possibility of developments in future by making forecasts and preparing budgets. The financial stability of a business concern. The real meaning and significance of financial data. The long term liquidity of its funds.

Techniques (Tools Or Methods) Of Analysis And ANALYSIS AND INTERPRETATION: The following techniques can be used in connection with analysis and ANALYSIS AND INTERPRETATION of financial statements: a. Comparative financial statements b. Common measurement statements c. Trends percentages analysis d. Fund flow statement e. Net working capital analysis f. Cash flow statement g. Ratio analysis

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Introduction To Ratios: Ratio Analysis: The indicated quotient of two mathematical expressions. Ratio analysis is one of the powerful tools of the financial analysis. This is done to develop meaningful relationship between individual items or group of items usually shown in the periodical financial statements published by the concern. It shows the relationship between the two interrelated accounting figures as gross profit to sales, current assets to current liabilities, loaned capital to owned capital etc. A Ratio is the numerical or an arithmetical relationship between two figures. It is expressed where one number is divided by

another. A ratio can be used as a yardstick for evaluating the financial position and performance of a concern, because the absolute accounting data cannot provide meaningful understanding and ANALYSIS AND INTERPRETATION. A ratio is the relationship between two accounting items expressed mathematically. Ratio analysis helps the analyst to make

quantitative judgment with regard to concerns financial position and performance.

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Absolute figures are valuable but they standing alone convey no meaning unless compared another. Accounting ratios show inter-relationships which exist among various accounting data. When relationships among various

accounting data supplied by financial statements are worked out, they are known as accounting ratios.

Importance Of Ratio Analysis: Ratio analysis stands for the process of determining and presenting the relationship of items and groups of items in the financial statements. It is an important technique of financial analysis. It is a way by which

financial stability and health of a concern can be judged. The following are the main points of importance of ratio analysis: 1)Useful in financial position analysis: Accounting ratios reveal the financial position of the concern. This helps the banks, insurance

companies and other financial institutions in lending and making investment decisions. 2)Useful in simplifying accounting figures: According ratios simplify, summarize and systematize the accounting figures in order to make them more understandable and in lucid form. They highlight the

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interrelationship, which exists between various segments of the business as expressed by accounting statements. Often the figures standing alone cannot help them convey any meaning and ratios help them to relate with other figures. 3) Useful In Assessing Operational Efficiency: Accounting ratios help to have an idea of the working of a concern. The efficiency of the firm becomes evident when analysis is based on accounting ratios. They diagnose financial health by evaluating liquidity, solvency, profitability, etc. This helps the management to assess financial requirements and the capabilities various business units. 4) Useful in forecasting purposes: If accounting ratios are calculated for a number of years, then trend is established. This trend helps in setting up future plans and forecasting. For example, expenses as a percentage of sales can be easily forecasted on the basis of sales and expenses of the past years. 5) Useful in locating the weak spots of the business: Accounting ratios are of great assistance in locating weak spots in the business even though the overall performance may be efficient. Weakness in financial structure due to incorrect policies in the past or present are revealed through accounting ratios. For example, if a firm finds that increase in

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distribution expenses is more than proportionate to the results expected or achieved, it can take remedial steps to overcome this adverse situation. 6) Useful in comparison of performance: Through accounting ratios comparison can be made between one department of a firm with another of the same firm in order to evaluate the performance of various departments in the firm. Manager is naturally interested in such

comparison in order to know the proper had smooth functioning of such departments. organization. Limitations Of Accounting Ratios : Ratio analysis is very important in revealing the financial position and soundness of the business. But, in spite of its advantages, it also has some limitations which restrict its use. These limitations should be kept in mind while making use of ratio analysis for interpreting the financial statements. The following are the main limitations of accounting ratios: 1) False results if based on incorrect accounting data: Accounting ratios can be correct only if the data is correct. Sometimes, the information given in the financial statements is affected by window dressing i.e. showing position better than what actually is. Ratios also help him to make any change in the

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2) Ignores qualification factors: Accounting ratios are tools of quantitative analysis only. But sometimes qualification factors may

surmount the quantitative aspects. The calculations derived from the ratio analysis may be distorted. 3) No idea of probable happenings in future: Ratios are an attempt to make an analysis of the past financial statements, they are historical documents. In the present scenario of complexities of the business, it is important to have an idea of the happenings in future. 4) Variation in accounting methods: The tow firms results are compatible with the help of accounting ratios only if they follow the same accounting methods or bases. Comparison will become difficult if the two concerns follows the different methods of providing depreciation or valuing stock. 5) No common standards: It is very difficult to lay down a common standard for comparison because circumstances differ from concern to concern and the nature of each industry is different. For example, a business with current ratio of more than 2:1 might not be in a position to pay current liabilities in time because of an unfavorable distribution of current assets in relation to liquidity.

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Financial ratio analysis groups the ratios into categories which tell us about different facets of a company's finances and operations. An overview of some of the categories of ratios is given below.

atios These are ratios, which show the extent that debt is used in a company's capital structure.

These are ratios which give a picture of a company's short term financial situation or solvency.

These are ratios which use turnover measures to show how efficient a company is in its operations and use of assets.

These are ratios which use margin analysis and show the return on sales and capital employed

Solvency Ratios These are ratios which give a picture of a company's ability to generate cash flow and pay it financial obligations

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CHAPTER 2COMPANY PROFILE

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Dhanlaxmi Bank Ltd At a Glance

Type

Public company Private sector (BSE: 532180, NSE: DHANBANK)

Industry

Banking Financial services Insurance

Founded Headquarters

1927 Dhanlaxmi Bank Ltd, Dhanalakshmi Buildings, Naickanal Thrissur, Kerala, India

Key people Products

GN Bajpai, PG Jayakumar Investment Banking Commercial Banking Retail Banking Private Banking Mortgage

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Credit Cards

Website

Dhanbank.com

Dhanlaxmi Bank Ltd. was incorporated in 1927 at Thrissur, Kerala by a group of ambitious and enterprising entrepreneurs. Over the 86 years that followed, Dhanlaxmi Bank with its rich heritage has earned the trust and goodwill of clients. It is due to their strong belief in the need to seek innovation, deliver best service and demonstrate responsibility that they have grown from strength to strength. Be it in the number of customers, the scale of business, the breadth of our product offerings, the banking experience we offer or the trust that people invest in them. With more than 670 touch points across India at your service; their focus has always been on customizing services and personalizing relations.

Dhanlaxmi Bank Ltd (BSE: 532180, NSE: DHANBANK) is an old private sector bank headquartered in Thrissur City, Kerala, India. The bank was focusing mostly on Southern states like Karnataka, Tamil Nadu, Andhra Pradesh and Kerala but it is looking for a pan India presence since the last few years.

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Dhanalakshmi Bank Ltd was incorporated on 14 November 1927 by a group of enterprising entrepreneurs at Thrissur city, the "Cultural Capital of Kerala" with a capital of Rs 11,000 and 7 employees. It became a Scheduled Commercial Bank in the year 1977. It has today attained national stature with 275 branches and 404 ATMs spread over the states of Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Maharashtra, Gujarat, Delhi, West Bengal, Madhya Pradesh, Punjab, Uttar Pradesh, Rajastan, Chandigarh, Goa, and Haryana. The Dhanalakshmi Bank has deployed technology widely as an instrument for enhancing the quality of customer service. It has introduced Centralized Banking Solution (CBS) on the Flexcube Platform at all its branches for extending anywhere/anytime/anyhow banking to its clientele through multiple delivery channels. The bank has set-up a stateof-the-art Data Centre in Bangalore, to keep the networked system operational round the clock. A Disaster Recovery Centre is also operational at Thrissur for meeting various contingencies. Current employee strength is around 4400

VISION AND MISSION


"To become a strong and innovative bank with integrity and social responsibility and to maximize customer satisfaction and the satisfaction of its employees, shareholders and the community." To be amongst the top 5 Private Sector Banks in terms of Banks Balance sheet size Profits
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Branch network Asset Quality To be a large profitable A rated bank.

AFFILIATIONS
Major Exchange Houses UAE Exchange Centre LLC Al Ahalia Money Exchange Bureau

Foreign Correspondent Banks Deutsche Bank Trust Company Americas Wachovia Bank NA - A Wells Fargo Company Commerzbank AG National Westminister Bank PLC Insurance Partner Bajaj Allianz

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Milestones
1927 - Founded on 14 November, 1927, at Thrissur, Kerala 1975 - Set up the first branch outside the home state of Kerala, at Chennai Mount Road 1977 - Designated as Scheduled Commercial Bank by the Reserve Bank of India (RBI) 1980 - 100-strong branch network 1986 - Total business of Rs. 100 crores 1996 - First public issue. Total business of Rs. 1,000 crores 2000 - Installed the first ATM 2002 - First Rights Issue 2002 - Platinum Jubilee year 2007 - Total business of Rs. 5,000 crores. 80th Anniversary year 2008 - Total business of Rs. 7,500 crores. Second Rights Issue 2009 - Opened 45 new branches and 102 new ATMs 2010 - Raised Rs. 381 crores through QIP in July 2010, Opened 20 new branches and 280 new ATMs, launched new brand identity; created platform for a unified image 2011- Launched its 275th branch in Jan 2011; ATM network expanded to 456, Total asset base for the bank was Rs.14,268 cr, as on 31.03.2011.

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Organizational Study of Dhanlaxmi Bank Growth and Development of Dhanalaxmi Bank


1927 - The Dhanalaxmi Bank Limited (DBL) was incorporated. It took banking business of all kinds. 1991 - 2,30,000 shares issued. 1992 - The Bank opened a branch at Veerappan Chatram. It also opened an Extension Counter at Hyderabad; Our Extension Counter at Nanthencode, Trivandrum was upgraded to a full fledged branch. - On 22nd April, the bank opened a branch at Peelamedu. - 3,50,000 shares issued to the public. 1993 - Modernisation has begun in the Bank with the inauguration of EDP Section in the Central Office on 28-01-'93. Computer support has been extended to all the three Regional Offices also. - Computer supported banking will be introduced in several selected branches during the course of the year 1993-'94. Some of the branches will be provided with on-line computer facilities. Efforts are also on to build up in house expertise in software development. 1994 - Rights equity shares issued at a prem. of Rs 25 per share. 1995 - The Bank has co-managed 5 issues, participated in 60 public issues in the capacity of Bankers to the Issue and extended underwriting support to 104 Public Issues. - The the Bank has entered in the field of project appraisal. Requests for 26 bridge loans were also entertained. - New branches of the bank were opened at Chevarambalam (Kozhikode Dist.), Ponnani (Malappuram Dist.) and Muvattupuzha (Ernakulam Dist.). - 80,00,000 No. of equity shares of Rs 10 each issued at a prem. of Rs 40 per share. 1996 - The bank had offered 80 lacs equity shares of Rs.10/- each at a
36

Organizational Study of Dhanlaxmi Bank


premium of Rs.40/- on each share aggregating to Rs.40 crores. - The bank entered into leasing business. - New branches of the bank were opened at Karur (Tamilnadu), Dasarahalli (Bangalore), Chembur Mumbai (Maharashtra), T. Nagar Chennai (Tamilnadu) and Valancherry (Kerala). - 82,35,545 No. of equity shares of Rs 10 each issued at a prem. of Rs 40 per share allotted through public issue. 1997 - The bank is celebrating the 70th year of service to the nation. The Bank's corporate philosophy is `service to the poor and needy'. - The Bank opened five more branches during the year at Surat, Ahmedabad, Fort Mumbai, Service Branch at Chennai and Industrial Finance Branch at Kochi. The Bank also opened five Extension Counters including the one at Guruvayur. - 11 branches were fully computerised during the year thereby totalling the fully computerised branches to 26. Back offices of five branches were also computerised. - The Investment Information and Credit Rating Agency has rated the bank's bond issue with a `LA' rating , indicating adequate safety. - The Trichur-based Dhanalakshmi Bank has been granted a full-fledged foreign exchange licence by the Reserve Bank of India (RBI). The bank had made a public issue of 80,00,000 equity shares of Rs.10 each at a premium of Rs.40 per share in February, 1996. Prior to the public issue, the shares of the bank were spread over 18,000 shareholders. 1998 - Dhanalakshmi Bank has launched two new deposit schemes -Dhanam Plus and Dhanam Double Plus -- in Bangalore. - The bank had offered 82 lakh shares at a premium of Rs. 40 per share through the public issue. 1999 - DHANALAKSHMI Bank, which has computerised 70 per cent of its business transactions, is now globally accessible on the Internet and
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Organizational Study of Dhanlaxmi Bank


can be visited at http://www.dhanbank.com, an official release from the bank has said. - THE Dhanam Kisan card will be launched by Dhanalakshmi Bank on October 28. - Thrissur-based Dhanalakshmi Bank proposes to introduce Web-based banking services in the new millennium. 2000 - The new rates for domestic deposits had become effective April 22 and for NRE/NRNR deposits from May 1. - The Kerala-based Dhanalakshmi Bank has received clearance from the RBI to allot shares on a pro rata basis to the subscribers of its public issue held in 1996. - The Bank has opened seven-day banking in select branches in Thiruvananthapuram, Ernakulam and Bangalore. 2001--Dhanalakshmi Bank inaugurated its first ATM Centre in Chennai at Anna Nagar on August 23 -Dhanalakshmi Bank has opens its first ATM in bangalore 2002 -Dhanalakshmi Bank introduces new home loan scheme called Dhanam platinum jubilee home loan advantage -The Dhanlakshmi Bank Ltd has fixed February 16, 2002 as the record date for the purpose of issue of four equity shares of Rs 10/- each at a premium of Rs 5/- per share on rights basis for every three existing equity shares held. -Ties up with MetLife India to distribute life insurance products of MetLife India 2003 -Dhanalakshmi Bank sets up 3 branches in Thrissur -Unveils cobranded product DhanLife with MetLife India, makes foray into insurance -Ties up with United India Insurance Co. in order to market insurance products via all the bank's branches -Mr B Muthuswamy, Managing Director and CEO has resigned and the charge handed over to Mr K A Menon, Executive Director.
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Organizational Study of Dhanlaxmi Bank


-Dhanalakshmi Bank inaugurates its Mumbai Treasury Department on Oct 29 - Dhanalakshmi Bank has taken over a 18,000 square feet property of Pentasoft Technologies under Securitisation Act 2004-Dhanalakshmi Bank introduces new bill payment services -Dhanalakshmi Bank takes possession of part of Devaki Hospital -Dhanalakshmi Bank unveils new loan scheme for 2 wheelers -Dhanalakshmi Bank Ltd has informed that Sri TR Madhavan has been appointed as its Managing Director & Chief Executive Officer at the Board Meeting held on February 23, 2004. - Launches heath insurance scheme in association with United India Insurance company -Delist from Madras Stock Exchange (MSE) with effect from September 7, 2004

2005 - Dhanalakshmi Bank joins IDRBT managed ATM network -Dhanalakshmi Bank inks rupee-drawing agreement with Oman firm -Dhanalakshmi Bank appoints Mr Prasad as new CEO -Dhanalakshmi Bank unveils new housing loan product 2007- Dhanalakshmi Bank Ltd has appointed Mr. K Srikanth Reddy as Additional Director, at the Board meeting held on October 29, 2007. 2008 - Dhanalakshmi Bank Ltd has appointed Mr. S Santhanakrishnan as Additional Director, at the Board meeting held on June 30, 2008. -The company has issued rights in the ratio of 1:1 at a premium of Rs. 52/-Per Share. 2009 - Dhanalakshmi Bank has appointed Mr Bipin Kabra as Chief Financial Officer (CFO), who has over 16 years of experience in financial services industry. His past assignments include stints in ICICI as well as SBI and Reliance group. Prior to joining the Dhanalakshmi Bank, he was associated with Zee group. He has spent considerable period in banking, insurance, merchant banking and treasury.
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Organizational Study of Dhanlaxmi Bank


BUINESS OVERVIEW
Dhanlaxmi Bank has reported an 11.8 per cent rise in net profit at Rs. 26.06 crore in the 12 months ended 31 March 2011, against Rs.23.30 crore, a growth of 11.8 per cent. Total income rose to Rs.1,053.19 crore from Rs.625.56 crore. The financial year 2011 was a year for consolidation for the Bank. On all parameters, including important ones such as business growth, net interest margin and NPA control, it was a good year. Net interest margin for the year was around 2.7 percent. The bank's loan-book witnessed a sharp growth largely on account of a greater thrust on the retail segment and diversification across regions, the release said. The bank's total income increased from Rs 182.40 crore in the quarter ended 31 March 2010 to Rs. 342.2 crore, recording a growth of 87.6 per cent. Non-interest income rose from Rs. 31.9 crore to Rs. 46.1 crore as a result of a focused thrust on fee-based business. Dhanlaxmi Bank has deployed technology widely. It has introduced Centralised Banking Solution (CBS) on the Flexcube Platform at all its branches for extending anywhere/anytime/anyhow banking to its clientele through multiple delivery channels. The bank has set-up a Data Centre in Bangalore, to keep the networked system operational round the clock. A Disaster Recovery Centre is also operational at Thrissur for meeting various contingencies.

Name change The bank has also changed its name from Dhanalakshmi Bank to Dhanlaxmi Bank which will have a new corporate identity. FITCH, a leading international branding and design consultancy had designed the new identity for the bank.
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Organizational Study of Dhanlaxmi Bank


Partnerships The bank is a depository participant of NSDL (National Security Depository Limited) offering Demat services through select branches. Bank is offering Online trading in association with Destimoney securities. It has partnered AGS Infotech for installation of ATMs. It offers VISA branded debit and credit cards to customers. It is also offering insurance services through Bajaj Allianz Life Insurance company as their Bancassurance partner.

Credit cards In March, 2010, the bank launched Dhanlaxmi Bank Platinum and Gold Credit cards. ACHIEVEMENTS Serviced business worth Rs. 21,595 crores as on 31 March 2011, comprising deposits of Rs. 12,530 crores and advances of Rs. 9,065 crores. Earned a net profit of Rs. 26.1 crores for the financial year ended 31st March 2011, with a capital adequacy ratio of 11.8% (Basel II) during the same period. Put in place the Real Time Gross Settlement (RTGS) and National Electronic Fund Transfer (NEFT) systems to facilitate large value payments and settlements online in real time, on a transaction-bytransaction basis. Set up NRI Boutiques (Relationship Centres) across nine locations in Kerala and Tamil Nadu, with plans to open specialized NRI outlets at potential locations with emphasis on impeccable service levels. Bank is a major player in micro credit in Kerala and the Bank's outstanding under micro credit was Rs. 266 crores at the end of March 2011. Attained ISO 9001-2000 certification for the Bank's corporate office at Trissur and industrial finance branch at Kochi.
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Organizational Study of Dhanlaxmi Bank


FINANCIAL INCLUSION INITIATIVES Surpassed the RBI's benchmark of priority sector lending of 40% by advancing Rs. 2565.86 crores as at March end 2011, accounting for 50.90% of net bank credit of net bank credit. Surpassed RBI's recommended norm of 18% advances with respect to agricultural credit by lending Rs.922.27 crores as as at March end 2011, accounting for 18.30% of net bank credit of net bank credit. Outstanding of Rs. 814.29 crores were under weaker sections, accounting 16.15% of net bank credit of net bank credit as against the RBI benchmark of 10% as at March end 2011. Outstanding in the area of micro credit totaled Rs. 336.23 crores as at March end 2011. Kissan Credit Cards for Rs. 3.91 crores were issued to 1200 farmers as at March end 2011. Opened 1,09,711 no-frills accounts with outstanding of Rs. 26.05 crores as at March end 2011, as part of financial inclusion initiatives.

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Organizational Study of Dhanlaxmi Bank

CHAPTER:-3 ORGANIZATIONAL DESIGN, BUSINESS LEVEL FUNCTIONS & PROCESSES


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Organizational Study of Dhanlaxmi Bank


ORGANIZATIONAL STRUCTURE: MATRIX ORGANIZATIONAL STRUCTURE

The matrix organization is an attempt to combine the advantages of the pure functional structure and the product organizational structure. This form is identically suited for companies, such as construction, that are project-driven. In a matrix organization, each project manager reports directly to the vice president and the general manager. Since each project represents a potential profit centre, the power and authority used by the project manager come directly from the general manager. Information sharing is mandatory in such an organization, and several people may be required for the same piece of work. However, in general, the project manager has the total responsibility and accountability for the success of the project. The functional departments, on the other hand, have functional responsibility to maintain technical excellence on the
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Organizational Study of Dhanlaxmi Bank


project. Each functional unit is headed by a department manager whose prime responsibility is to ensure that a unified technical base is maintained and that all available information can be exchanged for each project. The basis for the matrix organization is an endeavor to create synergism through shared responsibility between project and functional management. Other advantages of a pure matrix organizational form, to project management, include:

Because key people can be shared, the project cost is minimized Conflicts are minimal, and those requiring hierarchical referrals are more easily resolved There is a better balance between time, cost and performance Authority and responsibility are shared Stress is distributed among the team

One advantage of a matrix structure is that it facilitates the use of highly specialized staff and equipment. Rather than duplicating functions as would be done in a simple product department structure, resources are shared as needed. In some cases, highly specialized staff may divide their time among more than one project. In addition, maintaining functional departments promotes functional expertise, while at the same time working in project groups with experts from other functions fosters crossfertilization of ideas. The disadvantages of a matrix organization arise from the dual reporting structure. The organization's top management must take particular care to establish proper procedures for the development of projects and to keep communication channels clear so that potential conflicts do not arise and hinder organizational functioning. In theory at least, top management is responsible for arbitrating such conflicts, but in practice power struggles between the functional and product manager can prevent successful implementation of matrix structural arrangements.

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Organizational Study of Dhanlaxmi Bank


BUSINESS MIX OF DHANLAXMI BANK:-

BUSINESS MIX
MICRO/AGRI, 11% RETAIL, 13%

TAG, 14%

WBG, 62%

RETAIL

TAG

WBG

MICRO/AGRI

Graph:-2.1 BUSINESS MIX OF DHANLAXMI BANK


GEOGRAPHICAL BUSINESS MIX

80% 70% 60% 50% 40% 30% 20% 10% 0% 31/03/2009 KERALA

70% 56% 44% 30%

15/02/2010 NON KERALA

Graph:-2.2 GEOGRAPHICAL BUSINESS MIX OF DHANLAXMI BANK


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Organizational Study of Dhanlaxmi Bank


STRATEGICAL ASPECTS OF DHAN BANK:1. MARCH TOWARDS PAN INDIA EXPANSION:-

Dhanalakshmi Bank Ltd. (Dhanbank) has vision to be one of the top 5 Indian private banks in the near future. To attain this goal, Dhanbank has huge expansion plans to tap the potential lying in other places outside Kerala. Dhanbank is expected to open up 66 new branches and 389 new ATMs in the current financial year. Dhanbank will convert its 26 extension counters into full fledge branches in the current year, taking the total no. of branches to 273 in the current year. Dhanbank is expected to have 400 branches & 600 ATMs by the end of FY2010-11.

GRAPH:-2.3 NETWORKING ANALYSIS Dhanbank has got a contract with a German company, AGS, to handle its new ATM opening based on only opex no capex model. As per this model, AGS would be responsible for setting up new ATMs at strategic locations and to maintain the ATMs. Cost incurred to Dhanbank would be on number of transactions Dhanbank has 65% of its branches in state of Kerala. Out of the new branches few would be located in rural areas of Kerala and other would be mainly in Maharashtra & Gujarat & Northern areas, as these areas has the highest portion of deposits and loan off-take, from the total business of Indian banks. Opening of new rural branches would help Dhanbank to tap the huge potential lying in the rural areas.
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Organizational Study of Dhanlaxmi Bank


Dhanbank is expecting to add 900-1000 accounts daily after achieving the 273 branches target. This would help to bring in more CASA deposits.

2. Brand Transformation: Dhanbank is in process to strengthen its brand in the market. Ogilvy & Mather and Fitch have been appointed as marketing consultants; this would help the bank to reach to the new customers and to strengthen its brand image in the market. Dhanbank has appointed Ogilvy & Mather as its agency for the banking business to chart out a new brand proposition and communication strategy. O&M, Indias leading communication agency will help the Bank to design and implement a comprehensive go-to market communication approach. The agency will help the Bank in its endeavor to create an entirely new customer experience and to incorporate a young and contemporary look across all customer touch-points. 3. Margins heading north: Improvement in margins might be seen in the near future on the basis of: Increase in CASA: Increase in number of branches is expected to bring in 900 to 1000 accounts daily; this would help to grow the CASA deposits. Dhanbank targets to achieve CASA of 30% in medium span of time. As CASA deposits are low cost deposits this would lead to lower cost of deposits.

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Organizational Study of Dhanlaxmi Bank

GRAPH:-2.4- INCREASE IN CASA

Increase in NRI deposits: At present out of the total deposits, the NRI deposits are approx. 6%. Dhanbank has its major presence in Kerala and this area has huge potential of NRI deposits. Dhanbank plans to tap as much NRI deposits as possible, as these are low cost deposits. A special NRI deposit handling team is setup to tap this category of deposits Yield on Investments: In FY2008-09, yield on investments went down as Dhanbank had major holding in T-bills. Now Dhanbank plans to invest in the government securities, this is expected to increase the yield on investments, as the govt. securities yield better returns than T-bills. Repricing of deposits to decrease cost of deposits: In the present low interest rate scenario, Dhanbank is to benefit from the repricing of deposits. This will decrease the cost. Repricing could continue benefiting bank up to 1 year. 4. Venture into new business segments: Fee & Commission based business would be the focus of Dhanbank. This category of income leads to higher ROE & EPS as it does not require capital expenditure and it leads to regular stream of income. Dhanbank has taken various initiatives to increase its other income sources. With the increasing number of branches and deeper reach to retail clients would be a catalyst for the income from Fee & commission based income.

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Organizational Study of Dhanlaxmi Bank


Insurance distribution: Dhanbank has got into a tie up with Bajaj Allianz for its Life Insurance & general insurance product distribution. A special team of 300 marketing officers is set-up for insurance distribution business. Mutual fund distribution: As part of their wealth management, Dhanbank intends to distribute leading mutual fund schemes. Professional would be joining for MF product distribution and the bank would have a similar strategy as in case of its insurance distribution business. Other Products: Dhanbank is expected to come up with new products like gold coins, Travelers cheques, and forex services. The bank plans to offer 3in1 account whereby the customer would be provided with the routine banking relationship (Savings A/C) along with Demat A/C and a trading platform. AMC: Dhanbank is planning to get into Asset Management business. It is planning to enter the asset management business by buying into an existing fund, the investment is likely to be around Rs15-20 Cr. to buy stake in an existing AMC. Venture Capital: The bank is also looking at setting up a wholly-owned venture capital firm soon. Bank would put in about Rs.2000 Cr. in VC to invest in new start ups. The expected annual return from VC business is approx. 25%.

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Organizational Study of Dhanlaxmi Bank


PRODUCT SUITE:Following chart shows the various products and services offered by DHAN LAXMI BANK-

Figure:-2- PRODUCT SUITE OF DHAN BANK PRODUCTS AND SERVICES OF DHAN BANK:1. Personal Banking

Accounts:- Saving Account, Current Account, Term Deposit Loans:-Personal Loans, Home Loans, Auto Loans, Other Loans Depository Services Locker Facilities Forex Services:- Foreign Currency Cash, Cheque Deposits, Foreign Currency DD, Remittances.

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Organizational Study of Dhanlaxmi Bank

2. Corporate Banking

Cash Management (CMS) Credit:- Industrial Advance, Trade Advance, Import Export, Agriculture Assistance Salary Account Forex & Trade:-Forex Services, Export Services, Import Services

3. NRI Banking

Accounts & Deposits:- NRE Account, NRO Account, Recurring & TD, FCNRY FD, Returning NRIs Money Transfer:-Draft Drawing, Rupee Drawing, Money Transfer, Overseas Corresp. NRI Home Loan Investments:-Portfolio, Repatriation, Non-repatriation, Immovable properties.

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Organizational Study of Dhanlaxmi Bank

4. Micro (SME) & Agri-Banking


Dhanam Kissan Vahana Kissan Card Agri gold Loan Micro Credit - MFI Micro Credit - SHGs

5. Financial Planning

TABLE 2.1 Table showing competitor analysis vs. Dhanlaxmi Bank


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Organizational Study of Dhanlaxmi Bank


S.N o.
1

FEATURE ICICI BANK


AVERAGE MONTHLY BALANCE DEBIT CARD FACILITY MOBILE BANKING RTGS/NEFT COLLECTIO N OF OUTSTATIO N CHEQUES DERMAND DRAFT INTERNET BANKING SALARY ACCOUNT SWEEP IN AND AWEEP OUT FACILITY STOP PAYMENT PAY ORDERS BILL PYT FACILITY INTEREST ON FD <1.5 YR ANY BRANCH BANKING VARY AS PER PRODUCT FREE CHARGEABL E ON CHARGE BASIS Rs. 50 PER CHEQUE AS PER RBI NORMS FREE YES IN SOME ACCOUNTS

HDFC BANK
VARY AS PER PRODUCT FREE CHARGEAB LE ON CHARGE BASIS Rs. 50 PER CHEQUE AS PER RBI NORMS FREE YES NO

AXIS BANK
VARY AS PER PRODUCT FREE CHARGEABL E ON CHARGE BASIS Rs. 50 PER CHEQUE AS PER RBI NORMS FREE YES NO

YES BANK
VARY AS PER PRODUC T FREE CHARGEA BLE ON CHARGE BASIS Rs. 50 PER CHEQUE AS PER RBI NORMS FREE YES NO

DHANLAX MI
VARY AS PER PRODUCT FREE FREE BOTH 5-5 FREE PER MONTH FREE 5 OUTSTATION CHEQUES PER MONTH 5 D.D. FREE PER MONTH FREE YES YES,FREE

2 3 4 5

6 7 8 9

10 11 12 13

CHARGEABL E CHARGED AS PER NORMS YES 7%

CHARGEAB LE CHARGED AS PER NORMS YES 7.5%

CHARGEABL E CHARGED AS PER NORMS YES 7.25%

CHARGEA FREE TO SOME BLE EXTENT CHARGE D AS PER NORMS YES 7% 5-25 P. O .FREE PER MONTH YES 7.75%

14

YES

YES

YES

YES

YES

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Organizational Study of Dhanlaxmi Bank

Table 2.2 Table showing features of competitors vs. Dhanlaxmi Bank

S.No FEATURE .
1 MUTUAL FUND INVESTMENT GENERAL INSURANCE LIFE INSURANCE NRI BANKING AGRI BANKING HOME LOANS CORPORATE LOANS OTHER CREDIT SERVICES CUSTOMER CARE DEPARTMENT CREDIT CARD FACILITY ONLINE TRADING INTERNET BANKING MOBILE BANKING

ICICI BANK
YES,ICICI DYNAMIC,ICI CI GROWTH etc. ICICI LOMBARD ICICI LIFE INSURANCE YES YES YES YES YES YES YES YES

HDFC BANK
YES,HDFC TOP 200 YES YES YES YES YES YES YES YES YES YES

AXIS BANK
YES

YES BANK
YES

DHANLAXMI
THIRD PARTY PRODUCTS THIRD PARTY PRODUCTS THIRD PARTY PRODUCTS YES ONLY IN SOUTH INDIA ONLY IN SOUTH INDIA YES ONLY IN SOUTH INDIA YES ONLY IN SOUTH INDIA YES, IN ALLIANCE WITH DESTIMONEY SECURITIES LTD. YES YES

2 3 4 5 6 7 8 9 10 11

YES YES YES YES YES YES YES YES YES YES

YES YES YES YES YES YES YES YES YES YES

12 13

YES YES

YES YES

YES YES

YES YES

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Organizational Study of Dhanlaxmi Bank


COMPETITOR ANALYSIS AT A GLANCE:Table:- 2.3

S.No. FEATURE
1 BRANCHES

ICICI BANK
1544

HDFC BANK
1725

AXIS YES BANK BANK


905 150

DHANLA XMI
273

ATM

4816

4232

3894

216

453

4 5

MARKET CAPITALIZA TION IN CRORE Rs. TOTAL ASSETS

100,180. 00

94,942.22

52996 .04

9762.04

1149.27

286,059.7 7

139,011.39

156,74 8.35

31,688.8 9

6,795.02

NET SALES 25,706.93 IN CRORE Rs. (RECENT) NET PROFIT 4024.98 IN CRORE Rs. (RECENT)

16,332.26

11,638. 2,369.71 02 2514. 53 477.74

534.57

2244.94

23.30

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Organizational Study of Dhanlaxmi Bank


MARKET SHARE ANALYSIS:Following table represents the current market capitalization of different private commercial banks.
NAME OF COMPANY

ICICI HDFC AXIS YES DHANLAXMI OTHERS TOTAL Table:-2.4

MARKET CAPITALIZATION In crore Rs. 100,180.00 94,942.22 52,996.04 9,72.04 1149.27 63952.16 322981.73

PERCENTAGE 31% 29% 16% 3% .03% 20.97% 100%

MARKET SHARE ANALYSIS ON THE BASIS OF MARKET CAPITALIZATION


31%
29%

20.97% 3% 16%

ICICI

DHANLAXMI, 0.03%

HDFC

AXIS

YES

DHANLAXMI

OTHERS

Graph:- 2.5-MARKET SHARE ANALYSIS Depiction:-ICICI is the market player of private commercial bank segment with highest market share of 31%. HDFC and AXIS bank are market followers with 29% & 16% market share respectively. Dhanlaxmi has very low market share in the segment (=0.03%), rest 20% share is from others including INDUSIND BANK, BANK OF RAJASTHAN, KOTAK MAHINDRA, FEDERAL BANK, KARNATAKA BANK etc.

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Organizational Study of Dhanlaxmi Bank

CHAPTER: - 4 DATA ANALYSIS AND INETERPRETATIO N

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Organizational Study of Dhanlaxmi Bank

4.1 TABLE SHOWING KIND OF BANKS OPTED BY CUSTOMERS ON THE BASIS OF THEIR NEEDS:Table:- 4.1
KIND OF BANK PUBLIC SECTOR BANKS PRIVATE BANKS OTHERS NO. OF CUSTOMERS 35 55 10 PERCENTAGE 35% 55% 10%

Depiction:-The survey depicts that around 55% customers have opted public sector banks, while 35% are the customers of private banks. Rest 10% is from others including foreign banks and cooperative banks customers. Interpretation:- A large no. of customers still dont have faith in private banks, they still avail public sector nationalized banks for their banking requirements. Private sector banks can target these customers with better strategies.

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Organizational Study of Dhanlaxmi Bank

CHART NO.: 4.1 CHART SHOWING KIND OF BANKS OPTED BY CUSTOMERS ON THE BASIS OF THEIR NEEDS

KINDS OF BANKS OPTED BY CUSTOMERS


55%

10% 35% 0%

PUBLIC SECTOR BANK CUSTOMERS

PRIVATE BANK CUSTOMERS

OTHERS

Chart no. -4.1 Interpretation:- A large no. of customers still dont have faith in private banks, they still avail public sector nationalized banks for their banking requirements. Private sector banks can target these customers with better strategies.

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Organizational Study of Dhanlaxmi Bank


4.2 TABLE SHOWING CRITERIA OF SELECTING THE BANK FOR BANKING REQUIREMENTS:Table:- 4 .2
SELECTION CRITERIA REFERENCE PROXIMITY BRAND IMAGE PRODUCTS SERVICES NETWORKING AND NO. RESPONDENTS 19 30 08 22 21 OF PERCENTAGE 19% 30% 08% 22% 21%

Depiction:-As per survey about 30% respondents selected their bank on the basis of proximity of branch. Effective networking is the reason of selecting the bank for 21% customers, while 19% and 22% customers choosed their bank due to reference of known persons and products and services of the bank respectively. Rest 8% customers considered brand image of the bank while choosing it. Interpretation:-Survey depicts that proximity and products and services are the major factors which customer keeps in mind before selecting the bank. Some of the respondents selected the bank because it was referred to them by their relatives/friends etc.

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Organizational Study of Dhanlaxmi Bank


CHART NO. 4.2 CHART SHOWING CRITERIA OF SELECTING THE BANK FOR BANKING REQUIREMENTS

SELECTION CRITERIA AS PER SURVEY

21%

19%
REFERENCE

22% 8%

30%

PROXIMITY BRAND IMAGE PRODUCTS AND SERVICES NETWORKING

Interpretation:-Survey depicts that proximity and products and services are the major factors which customer keeps in mind before selecting the bank. Some of the respondents selected the bank because it was referred to them by their relatives/friends etc.

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Organizational Study of Dhanlaxmi Bank


4.3 TABLE SHOWING SATISFACTION LEVEL OF PUBLIC SECTOR BANK CUSTOMERS:Table:-4.3
SATISFACTION LEVEL VERY SATISFIED SOMEWHAT SATISFIED SOMEWHAT DISSATISFIED VERY DISSATISFIED NO. OF RESPONDENTS 06 20 06 03 % 17% 60% 19% 4%

Depiction:- Satisfaction level of public sector bank customers is about 75% as per the survey. Interpretation: - 25% respondents from public sector banks were not satisfied with the services. Some of the reasons for this dissatisfaction are as below: Poor customer relationship management Complex procedures.

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Organizational Study of Dhanlaxmi Bank


CHART NO. 4.3 CHART SHOWING SATISFACTION LEVEL OF PUBLIC SECTOR BANK CUSTOMERS

SATISFACTION LEVEL
VERY DISSATISFIED

4%

SOMEWHAT DISSATISFIED

18%

SOMEWHAT SATISFIED

60%

VERY SATISFIED

18%

VERY SATISFIED SOMEWHAT DISSATISFIED

SOMEWHAT SATISFIED VERY DISSATISFIED

Interpretation: - 25% respondents from public sector banks were not satisfied with the services. Some of the reasons for this dissatisfaction are as below: Poor customer relationship management Complex procedures.

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Organizational Study of Dhanlaxmi Bank


4.4 TABLE SHOWING SATISFACTION LEVEL OF PRIVATE SECTOR BANK CUSTOMERS:Table:- 4.4
SATISFACTION LEVEL VERY SATISFIED SOMEWHAT SATISFIED SOMEWHAT DISSATISFIED VERY DISSATISFIED NO. OF RESPONDENTS 24 20 6 5 % 47% 39% 12% 2%

Depiction:- Survey depicts that 47% respondents from private bank customers were very satisfied with the bank while around 40% were somewhat satisfied. Interpretation:- As per survey satisfaction level is higher in private bank customers as compared to customers from public sector bank. following are the reasons of dissatisfaction of private bank customers: Process delay. Service quality. Hidden charges. Behavior of the employees at branch.

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Organizational Study of Dhanlaxmi Bank


Chart :-4.4 CHART SHOWING SATISFACTION LEVEL OF PRIVATE SECTOR BANK CUSTOMERS

SATISFACTION LEVEL
VERY DISSATISFIED

2%

SOMEWHAT DISSATISFIED

12%

SOMEWHAT SATISFIED

39%

VERY SATISFIED
VERY SATISFIED SOMEWHAT DISSATISFIED SOMEWHAT SATISFIED VERY DISSATISFIED

47%

Interpretation: As per survey satisfaction level is higher in private bank customers as compared to customers from public sector bank. following are the reasons of dissatisfaction of private bank customers: Process delay. Service quality. Hidden charges. Behavior of the employees at branch.

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Organizational Study of Dhanlaxmi Bank


4.5 RELATION BETWEEN SELECTION CRITERIA AND SATISFACTION LEVEL:Table:-4.5
SELECTION CRITERIA REFERENCE PROXIMITY BRAND IMAGE PRODUCTS AND SERVICES NETWORKING NO. OF RESPONDENTS VERY SATISFIED RESPONDENTS PERCENTAGE

19 30 8 22 21

3 6 4 12 5

16% 20% 50% 54% 23%

Depiction:-Survey depicts that those respondents who choosed their bank on the basis products and services, 54% out of them were very satisfied with their bank. Respondents who choosed their bank on the basis of its brand image, 50% out of them were very satisfied. Interpretation:-As per survey results there is a relation between selection criteria and satisfaction level. A private commercial bank has to be strong in terms of following factors for 100% customer satisfaction:1. Brand image 2. Product differentiation 3. Network efficiency

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CHART NO. 4.5 CHART SHOWING RELATION BETWEEN SELECTION CRITERIA AND SATISFACTION LEVEL

ANALYSIS OF RELATIONSHIP BETWEEN SELECTION CRITERIA AND SATISFACTION LEVEL


100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

50% 84% 80%

46% 77%

50% 16% 20%

54% 23%

VERY SATISFIED

OTHERS

Interpretation:-As per survey results there is a relation between selection criteria and satisfaction level. A private commercial bank has to be strong in terms of following factors for 100% customer satisfaction:1. Brand image 2. Product differentiation 3. Network efficiency

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4.6 DOES YOUR BANK GIVE YOU REGULAR UPDATES ABOUT NEW PRODUCT AND SERVICES? Table:- 4.6
REGULAR UPDATES YES NO SOMETIMES NO. OF RESPONDENTS 64 17 19 PERCENTAGE 64% 17% 19%

Depiction:- As per survey 65% respondents say their bank give them regular updates on new products and services launched, while about 20% say their bank does not give them regular updates. Interpretation:-Regularly updating the customer about new products and services or any change in existing one is an effective tool of service positioning.

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CHART NO:-4.6 CHART SHOWING ANALYSIS OF REGULAR PRODUCT UPDATES GIVEN BY A BANK

ANALYSIS OF REGULAR PRODUCT UPDATES


0% 19%

17% 64%

YES NO SOMETIMES

Interpretation:- Regularly updating the customer about new products and services or any change in existing one is an effective tool of service positioning.

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4.7 TABLE SHOWING MOBILE BANKING AND INTERNET BANKING SERVICES: PATTERN OF USAGE TABLE NO.: 4.7
USE OF MODERN WAY OF BANKING NO. OF RESPONDENTS YES 37 NO 46 SOMETIMES 17

Depiction:- Survey depicts that only 35% respondents are using mobile banking and internet banking service regularly, whereas around 50% customers are still not using these services. Interpretation:- The reason behind lacking no. of mobile and ebanking users are : Hidden charges Unawareness. Complex procedures, etc

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CHART NO:-4.7 CHART SHOWING MOBILE BANKING AND INTERNET BANKING SERVICES: PATTERN OF USAGE

USE OF MOBILE AND INTERNET BANKING


NO 46% YES 37%

SOMETIMES 17%

0% YES NO SOMETIMES

Interpretation: - The reason behind lacking no. of mobile and ebanking users are : Hidden charges Unawareness. Complex procedures, etc

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4.8 TABLE SHOWING AWARENESS ABOUT DHANLAXMI BANK IN BANGALORE:TABLE NO. 4.8
AWARENESS LEVEL YES NO SOMEWHAT NO. OF RESPONDENTS 37 54 9 PERCENTAGE 37 54 9

Depiction:- As per survey 54% respondents said that they dont know about Dhanlaxmi bank . 37% respondents said that they know about Dhanlaxmi bank through their personal sources. Interpretation:- Awareness level of Dhanlaxmi Bank is not so high in BANGALORE . Advertisement campaign has not started thats why people know about it through their personal sources.

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CHART :-4.8 CHART SHOWING AWARENESS ABOUT DHANLAXMI BANK IN BANGALORE

AWARENESS LEVEL OF DHANLAXMI

SOMEWHAT

9%

NO

54%

YES

37%

YES

NO

SOMEWHAT

Interpretation: Awareness level of Dhanlaxmi Bank is not so high in BANGALORE . Advertisement campaign has not started thats why people know about it through their personal sources.

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4.9 TABLE SHOWING RISK TAKING ABILITY WITH RESPECT TO DIFFERENT INCOME LEVELS:Table:-4.9
RISK TAKING ABILITY INCOME GROUP VERY HIGH HIGH MIDDLE HIGH MODERATE LOW TOTAL

6 8 6

4 22 32

2 2 18

12 32 56

Depiction:- Survey depicts that : 50% respondents from very high income group can take high risk while investing, whereas around 35% respondents want to invest in those options which are less risky. Around 15% respondents from very this group wants to avoid risk while investing their money 65%customers from high income group are interested in investing those options having moderate risk whereas 20% can go for high risk categorized investment options; rest 15% wants to avoid the risk. 55% customers from middle income group can take moderate risk. Around 30% respondents want to avoid the risk of investment, rest 10% can go for high risky investment options. Interpretation: As we go from very high income group to middle income group risk taking ability decreases. Customers from middle income group want to avoid investment in ULIPS, equity market and other equity market linked investment options. Customers from very high income can take high risk while investing their money as compared to respondents from other income groups.
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CHART NO. : 4.9 CHART SHOWING RISK TAKING ABILITY WITH RESPECT TO DIFFERENT INCOME LEVELS
70

66%
57% 50%

60

50

40

34%
30

32% 25% 16% 9% 11%

20

10

0 VERY HIGH(>50000 MONTHLY) HIGH(30000-50000 MONTHLY) HIGH MIDDLE(<30000 MONTHLY) LOW

MODERATE

Interpretation: As we go from very high income group to middle income group risk taking ability decreases. Customers from middle income group want to avoid investment in ULIPS, equity market and other equity market linked investment options. Customers from very high income can take high risk while investing their money as compared to respondents from other income groups.

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4.10 ANALYSIS OF RISK TAKING ABILITY IN INVESTMENT AT DIFFERENT LEVELS OF AGE:Table:-4.10


RISK TAKING ABILITY HIGH MODERATE AVOIDER <40 YEARS 15 26 8 >40 YEARS 5 31 15

Depiction:- Survey depicts that: 31% respondents from, 40 yrs age group wants to invest money in high risky investment options. 50% wants to be in moderate risk category. Only 10% respondents from >40 age group want to put their money in high risk categorized options whereas around 30% want to avoid risk. Interpretation:- There is a relationship between risk taking ability and age of the respondent. Risk taking ability decreases with increasing age.

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CHART NO.: 4.10 CHART SHOWING ANALYSIS OF RISK TAKING ABILITY IN INVESTMENT AT DIFFERENT LEVELS OF AGE

RISK TAKING ABILITY


70%

61%
60% NO. OF RESPONDENTS 50% 40%

50% HIGH RISK TAKER 29% 19% 10% MODERATE RISK TAKER RISK AVOIDER

31%
30% 20% 10% 0% <40 YEARS

>40 YEARS AGE GROUPS

Interpretation: There is a relationship between risk taking ability and age of the respondent. Risk taking ability decreases with increasing age.

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Dhanlakshmi bank Parent Company Category Sector Tagline/ Slogan USP Government of India Bank Banking and finance Tan Man Dhan Innovative Bank with integrity and social responsibility STP Segment Target Group Positioning Individual and Industry banking Industrial Sector Complete Banking solutions SWOT Analysis 1. Varied Financial products for different customer segments 2. Strategic tie-ups with leading players for various products like insurance etc. 3. Schemes for social initiatives aligned with government schemes 4. Has around 275 branches, 4400 employees and over 500 ATMs 1. Low presence across India as it is limited to a few states 2. Marketing is very limited as compared to other banks 3. Lack of retail banking as compared to popular banks 1. Rural banking for higher penetration 2. International banking, where Indians are present

Strength

Weakness

Opportunity

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1. Economic slowdown 2. Highly competitive environment 3. Stringent Banking Regulations Competition

Threats

Competitors

1. Lakshmi Vilas Bank 4. ICICI Bank 2. Karur Vyasa Bank 5. HDFC Bank 3. Federal Bank 6. Axis Bank

SWOT ANALYSIS - Strong Network in South India - Experience and Expertise - Late entry in to North, East & West Indian Markets

- Unlimited Transactions Through - Dhanlaxmi Bank Only Focused on ATM From Any Bank Without Kerala & South India Earlier Charge -ATM Card Can be - Less No. of Branches and ATMs As Used Compared to Competitors WEAKNESSES

Internationally - Attractive Fixed Deposit Rates (10.25%) STRENGTHS

- Expansion Option in North , East & - Big Players in the Industry West India - Customers are Service-oriented - A False Rumor of Reliance Taking Over the Bank

- Customers Keep Fluctuating From - Nationalized Banks are Growing Banks to Banks OPPORTUNITIES Fast - Economic Conditions In India - RBIs Policy Regarding CRR THREATS

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FINANCIAL ANALYSIS RATIO ANALYSIS

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Mar '12 Mar '11 Mar10

Investment Valuation Ratios


Face Value Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit / Share (Rs) Free Reserves Per Share (Rs) 10.00 -23.33 166.2 4 61.77 75.95 42.54 108.54 87.51 10.00 0.50 -6.16 10.00 1.00 -2.80

Profitability Ratios
Interest Spread Adjusted Cash Margin(%) Net Profit Margin Return on Long Term Fund(%) Return on Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Revaluations Return on Assets Including Revaluations 85.54 99.21 68.64 -7.56 141.3 6 15.87 16.02 85.54 99.21 68.64 3.02 5.13 3.08 5.29 2.49 80.56 3.73 95.83 4.20 -5.70 4.03 3.93 3.26 5.27

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Management Efficiency Ratios
Interest Income / Total Funds Net Interest Income / Total Funds Non Interest Income / Total Funds Interest Expended / Total Funds Operating Expense / Total Funds Profit Before Provisions / Total Funds Net Profit / Total Funds Loans Turnover Total Income / Capital Employed(%) Total Assets Turnover Ratios Asset Turnover Ratio 0.10 4.42 4.16 0.10 0.08 0.08 -0.80 0.16 10.56 0.23 0.13 9.36 0.34 0.14 9.09 -0.79 0.48 0.51 3.23 3.00 2.69 7.92 5.74 5.74 0.78 1.09 0.92 1.86 2.53 2.43 9.78 8.27 8.17

Profit And Loss Account Ratios


Interest Expended / Interest Earned Other Income / Total 7.41 11.68 10.11 82.24 70.75 73.71

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Organizational Study of Dhanlaxmi Bank


Income Operating Expense / Total Income 30.60 32.04 29.64

Balance Sheet Ratios


Capital Adequacy Ratio Advances / Loans Funds(%) Debt Coverage Ratios Credit Deposit Ratio Investment Deposit Ratio Cash Deposit Ratio Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax 0.92 1.06 1.09 -0.07 0.11 1.11 6.87 16.21 7.21 14.83 8.35 16.13 73.24 32.88 71.69 28.87 67.97 29.79 9.49 65.65 12.47 88.98 12.99 82.15

LEVERAGE RATIOS
Current Ratio Quick Ratio 0.04 23.94 0.04 38.70 0.03 13.66

Cash Flow Indicator Ratios


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Organizational Study of Dhanlaxmi Bank


Dividend Payout Ratio Net Profit Dividend Payout Ratio Cash Profit Earning Retention Ratio Cash Earning Retention Ratio Adjusted Cash Flow Times Mar '12 Earnings Per Share 13.58 Book Value 85.54 99.21 68.64 3.06 3.63 Mar '11 Mar '10 -304.61 215.78 -87.90 77.20 -80.50 66.80 -11.95 22.31 -19.10 32.18

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Organizational Study of Dhanlaxmi Bank

CHAPTER-5 SUMMARY OF FINDINGS, SUGGESTIONS & CONCLUSION

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Organizational Study of Dhanlaxmi Bank


FINDINGS: As per the survey conducted, it is noticed a good sector of the people prefer to be customers of nationalized banks. This can be very well explained by the fact that nationalized banks are acquainted with the Government and ups and downs in business will not affect the existence of the bank. Also the RBI has good control over the working of these banks and there for the customers have a sense of security in investing in these banks. However it is also seen that a good percentage of people also opt for private banks such as ICICI, HDFC, AXIS bearing in mind the amount of experience they posses in the field of banking. Survey results show that customers from private sector banks are more satisfied as compared to customers from public sector banks. it was found that there is a direct relationship between brand image/product differentiation and satisfaction of the customer. Customer demographic plays important role while preparing penetration strategies. Dhanlaxmi has the retail products with unique features which others dont have, but some of the services it is selling in alliance with third parties. Product line of Dhan Bank is not as diversified in Jaipur as their competitors have. Market share of Dhan Bank is not as high as compared to ICICI, HDFC, AXIS and YES BANK. The reasons for above or in other words the hidden reason for all of the is: # Liberal credit

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Organizational Study of Dhanlaxmi Bank


# Credit available in all the branches # Head office instructions for lending # No proper follow up # Aiming for super profit # Poor legal action # Defect in cash recovery target/achievement

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Organizational Study of Dhanlaxmi Bank


SUGGESTIONS & RECOMMENDATIONS: The bank should introduce new delivery channels via opening more branches and ATMs in Bangalore to improve network efficiency. Effective advertisement campaign can help the bank to increase business in Bangalore. TV commercials, Hoardings posters can be some of the mediums to increase the awareness of Bank in Bangalore. Bank should launch the whole product line in Jaipur to emerge its position in competition. Bank should target 5 km area around the branch office because survey depicts that most of the customers selected their bank on the basis of proximity. Bank should constantly innovate their products as per customer requirements. Dhanlaxmi Bank should maintain the consistency in service quality for total customer satisfaction. The bank should invest in funds more profitably as it also has to pay interest on the deposits it accepts. Proper precautions should be taken to avoid such situations in future Added efforts should be made to increase advances to total deposits ratio as it is a source of income for the bank. The advances made by the bank as a percentage of its deposits has increased showing efficient utilization of its funds

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The bank has not maintained its lending and borrowing rate, this is not appreciable and the bank should maintain a good and balanced lending and borrowing rate, in the stiff competition the industry in going through. The organization has adopted some measures to reduce the cost. Operational expenses have continuously decreased in the last three financial years. A good monitoring system has been placed to keep a check on the expenses. The bank has been increasing the earnings per share and the profitability of the bank has been improving considerably. This shows that the bank has been winning the confidence of the customers The return on capital employed has an increasing trend. If the return on capital employed is high, the financial institution extends its fresh loans. It helps management for further development of business in future and a high return satisfies share holders. Return on capital employed of the company is satisfactory. The low debt equity ratio indicates that the claim of outsiders is lesser than the share holders against the companys assets. It gives higher margin of safety to the creditors at the time of companys liquidation. The owners funds in case Dhanlaxmi Bank are more than the outsiders funds in all the years which signifies that the long term creditors are relatively less.

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The organization has to take preventive and be cautious measures so that the Current assets to Networth ratio increases at a constant rate and the company has a satisfactory current assets to Networth ratio. From the current liabilities to Net worth Ratio we can see that the liability base of the concern will not provide an adequate cover for long-term creditors. Therefore the firm should take preventive and cautious measures to reduce the ratio as if the ratio keeps increasing; it would be difficult to obtain the long term funds. The bank is in a quiet a good position to meet the contingent expenditure due to its high liquidity position but its important to see the profitability position of the bank. The bank may have to carefully scrutinize its liquidity position and try to increase the profitability

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CONCLUSION Banking system is changing in phase. From legendary used applications banks need to divert and stay update with the latest technology In the economy customer is the king, the bank needs to change is; business strategies. Banking system is indispensible. To remain in the competition, technology is must.

Dhanlaxmi Bank has been successful in satisfying its customers at the ground level. The bank has made the platform on which the bank is already in the process of its Business Review Process. Its standards are heading towards the global market with a competitive edge of technology.

Dhanlaxmi Bank is now among those few banks that are receiving World Bank loans for their technology up gradation and infrastructure.

I have successfully been able to accomplish my objective of undertaking the project.

From my research as indicated and my personal experience, I can state that Dhanlaxmi Bank has been working towards a progressive and healthy future towards the achievement of global banking standards by making an attempt towards up gradation of its infrastructure and services to cater its customers banking needs.

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BIBLIOGRAPHY
http://www.moneycontrol.com/financials/dhanalakshmibank/results/quart erly-results/DB01 http://www.dhanbank.com/aboutus/about_us.aspx http://www.dhanbank.com/investor_relations/inv_financials.aspx http://economictimes.indiatimes.com/dhanalakshmi-bankltd/stocks/companyid-8970.cms http://en.wikipedia.org/wiki/Dhanlaxmi_Bank http://www.business-standard.com/india/news/dhanlaxmi-bank-to-raisers-200-crore-by-early-january/198140/on http://money.rediff.com/companies/Dhanlaxmi-Bank-Ltd/14030067

BOOKS, JOURNALS: COMPANY BROCHURES ANNUAL REPORTES OF DHAN BANK BUSINESS ECONOMICS JOURNAL KOTHARI, C. R. ,RESEARCH METHODOLOGY

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Organizational Study of Dhanlaxmi Bank ANNEXURE: QUESTIONNAIRE


1. NAME2. AGE 3. E-MAIL4. CONTACT 5. EDUCATION 6. MONTHLY INCOME 7. PROFESSIONA) SALARIED B) SELF EMPLOYED (..) C) OTHERS Q. 1 WHICH BANK(S) YOU ARE USING FOR YOUR CURRENT BANKING REQUIREMENTS? Q. 2 WHICH BANKING PRODUCTS YOU ARE AVAILING? A) SAVING ACCOUNT B) CURRENT ACCOUNT C) LOCKER D) FIXED DEPOSIT E) CREDIT Q.3 YOU CHOOSED YOUR BANK ON THE BASIS OFA) PROXIMITY B) NETWORKING C) PRODUCTS AND SERVICES D) REFRENCES E) TIMING F) BRAND IMAGE Q.4 DO YOU USE THE MODERN AND SMART WAY OF BANKING? A) YES B) NO C) SOMETIMES Q.5 DOES YOUR BANK GIVES YOU REGULAR UPDATES FOR NEW PRODUCTS AND SERVICES? A) YES B) SOMETIMES C) NO D) NEVER Q. 6 HOW MUCH YOU ARE SATISFIED WITH THE SERVICES, YOUR BANK IS PROVIDING TO YOU? A) VERY SATISFIED B) SOMEWHAT SATISFIED C)SOMEWHAT DISSATISFIED D) VERY DISSATISFIED Q. 7 WOULD YOU LIKE TO GET SOME ADDITIONAL BENEFITS FROM YOUR BANK? A) YES B) NO
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IF YES WHAT KIND OF? ................................................................................................................... Q. 8 WHAT KIND OF INVESMENT YOU ARE INTO FOR SECURING YOUR FUTURE? A) FIXED DEPOSIT B) INSURANCE C) MUTUAL FUNDS D) SHARES/BONDS E) REAL ESTATES F) OTHERS Q. 9 WHAT IS THE PURPOSE OF YOUR INVESTMENT A) PROFITABILITY B) LIQUIDITY D) TAX BENEFIT C) SECURITY

Q. 10 WHAT IS YOUR PREFERENCE FOR INVESTMENT, STARTING FROM 1ST RANK TO SUBSEQUENT RANKINGS? MUTUAL FUNDS (.) INSURANCE (.) GOLD (.) REAL ESTATE (.) SHARES/BONDS (.) FIXED DEPOSITS (.) Q.11 HOW MUCH YOU SPEND YEARLY TOWARDS INVESTMENT ACTIVITIES? A) LESS THAN 1 LAC B) B/W 1-2LACS C) B/W 2-3 LACS D) MORE THAN 3 LACS Q. 12 DO THE INSURANCE PLAN YOU ARE INTO COVERING YOUR RISK PROPERLY? A) NO B) YES IF NO / YES, HOW? ......................................................................................................... Q. 13 HAVE YOU EVER HEARD ABOUT DHANLAXMI BANK? A) YES B) NO IF YES, HOW DID YOU COME TO KNOW ABOUT THE BANK?

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