Presentation on how to open a bank
- 1. PRESENTED BY ANURAG TRIPATHI SHUBHAM SINGH BAGHEL
- 2. Type – Private Industry – Banking, Financial Service Founded – November 2001 Location – vibhuti khand, gomti nagar, Lucknow. Products- Credit Cards, Consumer Banking, Corporate Banking, Finance and Insurance, Mortgage Loans, Private Banking, Wealth Management, Investment Banking No. of employees-30
- 3. “Wisdom” It signifies that : We take care of our people Knowledge and experiences Reasonable justice. “A place where you can bank on”
- 4. Registered under companies Act 1956 FORM III - Licensed under section 22 of the banking regulation Act, 1949 and governed by the provisions of the banking regulation Act, 1949 RBI Act 1934 Payment and settlement systems Act, 2007 Credit information companies (regulation) Act, 2005 http://www.advocatekhoj.com/library/rules/bankin gregulation/form3.php?Title=Banking%20%20%20 Regulation%20(Companies)%20Rules,%201949&S Title=Form%20III
- 5. Deposit insurance and credit guarantee corporation Act, 1961 Suitable operation as per section 42(6)(a) of the RBI Act, 1934 NBFC under section 45- IA of the RBI Act, 1934 SEBI Act, 1996 IRDA Act, 1999 Company incorporated in partnership Act,1932
- 6. As per RBI guidelines act,1934. to establish a private bank, minimum capital INR 200 cr. So three promoters bring INR 25 cr each and chairman bring INR 50 cr. Worth INR 75 cr would be the company’s value And INR 100 cr will be debt money. (INR 50 CR Debenture and INR 50 CR Loan from RBI) Infrastructure Infrastructure is passed over & maintained from existing company ( NBFC) Note - All promoters investment transfer from former company(NBFC) which changed into bank.
- 7. Net profit- INR -(1,139,8348) Balance sheet size- INR 300 cr Total deposits – INR 40,000,000 Total advances- INR 30,600,000 Capital adequacy ratio – 11.12% Cash ratio – 61.20
- 8. 1. CASA (Current Account Saving Account) 2. Salary Account 3. Credit Card Facilities 4. Individual financing 5. Wealth Management 6. Project Financing 7. Working Capital Financing
- 9. Chairman Deputy MD (Treasurer) Deputy MD (Marketing) Deputy MD ( Finance) Deputy MD (HR) Managing director
- 11. Finance (CFO) Financial analyst Personal banker CA Asst. manager HRD HR EXECUTIVE SKILLS TRAINING ADMINISTRATOR CAREER DEVELOPMENT COUNSELOR HR MANAGER
- 12. Vision To be a leading provider of financial services in India and enhance our positioning among global banks through sustainable value creation Provide short term loan with less paper work. Provide loan on low interest rate. Maintain high standards of governance and ethics Maintain customer relationship.
- 13. Measurably increase total online application completions, accounts opened, and loan accounts funded. Build consumer confidence by assisting with complex product and service decisions. Up-sell and cross-sell loyal customers, increasing lifetime value. Use best practices to target visitors with the highest potential to produce valuable business.
- 14. Reduce service costs and increase agent productivity. Foster long-term customer satisfaction. Prevent cancellations and product downgrades. Optimize your website with real-time monitoring and reporting that guides marketing strategies and tactics.
- 17. Target Customer: This segment is for the corporate banking :- 1. Salary Class ( Minimum INR1.5 Lakhs per annum) 2. Small Scale Business ( Minimum Turnover INR 10 Lakhs per annum) 3. Advisory Customer for investment and wealth management
- 18. This segment is for Retail Banking:- 1. Upper Middle Class Person. 2. Lower Middle Class Person. 3. Working Class. Loans Personal Loan ( Maximum up to INR 5 Lakhs). House Loan ( Maximum up to INR 12 Lakhs). Education Loan ( Maximum up to INR 7 Lakhs). Loan for buying a equipment ( Maximum up to 10 Lakhs).
- 19. Wisdom Bank promote itself through various media such as 1. Print Media 2. Hoardings 3. Radio 4. Movie Theatres
- 20. Wisdom Financial Services has a pricing strategy based on competition ,RBI guidelines and customer demand. It follows the guidelines of Reserve Bank of India because banking sector has highly competitive. Government policy heavily affects the pricing policy of banking sector.
- 21. Wisdom Bank has as its physical evidence through – ◦ websites , ◦ a business card , ◦ paper work, ◦ cheque book, ◦ pass book, ◦ demand draft, ◦ ATM
- 22. Corporate sector Schools & colleges Medium size investor
- 24. 1. First of all, we’ll conduct a job analysis by asking former employees to complete a PIQ (Position Information Questionnaire) 2. From this we find out ,according to them what are the key behaviours that are required to perform the task. 3. What organisation needs {KSA} for expected performance 4. Identify the gap 5. Steps to be taken to fulfill the gap.
- 25. Kotak Mahindra Bank Share price- INR 1135.35 Mkt cap (CR) – INR 2165559.39 Product – corporate banking, investment banking. Market strategy- pricing, advertising & distribution strategies. HDFC Bank Share price- INR1966.80 Mkt cap (CR) – INR 534482.14 Product – credit cards , private banking. Market strategies – segmentation , targeting, positioning etc.
- 26. ICICI Bank Share price – INR 320.55 Mkt Cap (CR) – INR 205832.54 Market strategy – pricing and market share in consumer banking.
- 27. Gold credit card 3X reward point against every INR 100 of retail spend Eligibility – minimum salary INR 10000/- monthly Maintenance charge – INR 600/- P.A Maximum limit – INR 40000/- monthly Platinum PVR card Spend INR 10000 per month get 2 tickets of PVR Eligibility – minimum salary INR 25000/- monthly Maintenance charge – INR 550/- P.A Maximum limit- INR 60000/- monthly
- 28. Indigo card 15% discount on indigo air ticket up to INR 10,000/- Eligibility – salary INR 40,000/- monthly Maintenance – INR 700/- P.A Maximum limit – INR 2,50,000/- monthly Business platinum card Insurance – air accident cover up to INR 25 lakhs Eligibility – salary INR 60,000/- monthly Maintenance – INR 1000/- P.A Maximum limit – INR 3,00,000/- monthly
- 29. Lifestyle card 20% of discount from INR 2,000 to INR 6,000 spend in any restaurant in India Eligibility – salary INR 50,000/- Maintenance charge – INR 700/- Maximum limit- INR 2,00,000/-
- 30. 1. Demographic: A. Location- Metros City, divisional Cities. B. Occupation- Business Class, Salary Class. 2. Age: i. Senior Citizen ( Above 60 Years) ii. Major ( 18-60 years) iii. Minor ( Less than 18 years) 3. Psychographic Variables: People who believes in modern banking with higher set of service in internet banking, on-line bill payment service, on-line ticket booking service.
- 31. 1. If your business idea is unique and realistic then we at Wisdom Bank give you freedom and flexibility to design your own business of banking service. 2. Our free SMS alerts updates you on status of your account balance, recent transactions. 3. Choose a number of your choice as your account number. 4. We will at your service for 12 hours in a day from morning 8 a.m. to evening 8 p.m.
- 32. 1. We have 50 crore surplus capital from our existing business (NBFC) other than partner capital that is 200 crore. So, we brought 25 crore from the surplus amount for maintaining capital of 200 crore. 2. We already had signed an agreement stating- If any director leaves the organisation he has to leave his 25% stake with the bank itself. Moreover, he can not work in any similar organisation for at least 3 years. According to agreement, before leaving the organisation employee give advance notice before 6 months.
- 33. We can invest more in securities out of our cash and earn interest and dividend to compensate loss from increasing SLR, CRR and bank rate. OR We give more loan at a same rate of interest for maintaining same level of financial position. SLR , CRR and bank rate will effect same to other competitors as well, so interest rate will be change for others. Deflation will increase.
- 34. Contribution = sales – variable cost = 90560402.4-3012500 = 87547902.4 BEP = fixed cost / contribution = 99946250/ 87547902.4 = 1.14 Approx.- 1.5 years.