Company Analysis Indian Bank

Banking Industry Trends: Banking industry constitutes of retail banking, investment and corporate banking and asset and wealth management. Europe has highest market share, contributing to 43% of global banking industry. Retail banking industry grew significantly in period 2006-11, wherein Asia Pacific banking industry grew much faster than both the European and North American regions. Asia pacific region with massive unbanked population in India and China offers immense opportunity for banking companies. Europe's crisis and the large government budget deficit in the US are expected to reduce government spending, resulting in sluggish short-term economic growth in both regions. Growing middle class populations and growing household incomes in emerging markets provide substantial opportunity for global banks. Technological advances are leading to dramatic shifts in the banking industry as the processing cost per transaction is approaching zero while simultaneously improving efficiency. These advantages are likely to increase trading volumes at the institutional level. Recent Developments in India: The RBI has taken a few important steps to make the Indian Banking industry more robust and healthy. This includes de-regulation of savings rate, guidelines for new banking licenses and implementation of Basel Norm III. Since March 2002, Bankex (Index tracking the performance of leading banking sector stocks) has grown at a compounded annual rate of about 31%. After a very successful decade, a new era has started for the Indian Banking Industry. According to a Mckinsey report, the Indian banking sector is heading towards being a high-performing sector. According to an IBA-FICCI-BCG report titled Being five star in productivity road map for excellence in Indian banking, Indias gross domestic product (GDP) growth will make the Indian banking industry the third largest in the world by 2025. According to the report, the domestic banking industry is set for an exponential growth in coming years with its assets size poised to touch USD 28,500 billion by the turn of the 2025 from the current asset size of USD 1,350 billion (2010). So, before going in its future, lets have a glance at its historical performance. PEST Analysis of Banking Industry: Political factors: Some of the major political factors affecting the Banking industry are : Focus on regulation of government Budget and budget measures Foreign Direct Investment limits Indian banking sector is least affected as compared to other developed countries- thanks to robust policy framework of RBI. Government affects the performance of banking sector most by legislature and framing policy. Government through its budget affects the banking activities. Securitization act has given more power to banking sector against defaulting borrowers. Stricter prudential regulations with respect to capital and liquidity gives India an

advantage in terms of credibility over other countries. The move to increase Foreign Direct Investment FDI limits to 49 % from 20% per cent during the first quarter of this fiscal came as a welcome announcement to foreign players wanting to get a foot hold in the Indian Markets by investing in willing Indian partners who are starved of net worth to meet CAR norms. The move to increase Foreign Direct Investment FDI limits to 49 percent from 20 percent during the first quarter of this fiscal came as a welcome announcement to foreign players wanting to get a foot hold in the Indian Markets by investing in willing Indian partners who are starved of net worth to meet CAR norms. Economic Factors: Every year RBI declares its 6 monthly policies and accordingly the various measures and rates are implemented which has an impact on the banking sector. The Economic measures affects the banking sector to boost the economy by giving certain concessions or facilities. If the savings are encouraged, then more deposits will be attracted towards the banks and in turn they can lend more money to the agricultural sector and industrial sector, therefore, booming the economy. If the FDI limits are relaxed, then more FDI are brought in India through banking channels In past 27 months RBI has changed its key monetary rates many times to curb inflation and other economic risks. Social Factors: Before the birth of the banks, people of India were used to borrow money local moneylenders, shahukars, shroffs. They were used to charge higher interest and also mortgage land and house. But after emergence of banks attitude of people was changed and they have started lending from the banks. Life style of India is changing rapidly. They are demanding high class products. They have become more advanced. Peoples needs and wants are increasing day by day. And this has this has opened opportunities for banking sector to tap this change. This has made things available easily to everyone. Increase in population is one of the important factor, which affect the private sector banks. Banks would open their branches after looking into the population demographics of the area. Newer branches are coming to serve the increasing population. This incentive to banks comes on the back of the continuing need to open more branches in these States in order to ensure more uniform spatial distribution. Literacy rate in India is very low compared to developed countries. Illiterate people hesitate to transact with banks. So, this impacts negatively on banks. But there is positive side of this as well i.e. illiterate people trust more on banks to deposit their money, they do not have market information. Opportunities in stocks or mutual funds.

Technological Factors: Technology plays a very important role in banks internal control mechanisms as well as services offered by them. Through the use of technology new products and service are introduced. It include technological aspects such as R&D activity, automation, technology incentives and the rate of technological change. Some of the technological changes which brought radical changes in banking industry are described below : 1. The latest developments in terms of technology in computer and telecommunication have encouraged the bankers to change the concept of branch banking to anywhere banking. The use of ATM and Internet banking has allowed anytime, anywhere banking facilities. 2. Automatic voice recorders now answer simple queries, currency accounting machines makes the job easier and self-service counters are now encouraged. 3. Credit card facility has encouraged an era of cashless society. The banks have now started issuing smartcards or debit cards to be used for making payments. These are also called as electronic purse. 4. Today banks are also using SMS and Internet as major tool of promotions and giving great utility to its customers. For example SMS functions through simple text messages sent from your mobile Technology advancement has changed the face of traditional banking systems. Technology advancement has offer 24X7 banking even giving faster and secured service. SWOT Analysis of Indian Banking Industry: Strengths: High standard regulatory environment. The policy makers, which comprise the Reserve Bank of India (RBI), Ministry of Finance and related overnment and financial sector regulatory entities, have made several notable efforts to improve regulation in the sector. Bank lending has been a significant driver of GDP growth and employment Presence of more number of Smaller banks that would likely to be impacted adversely. Approximately 53000 networks of branches spread all over the country provides easy access to entire spectrum of customers. Diversification in their operations Banks offer an entire gamut of services including insurance, investment banking, asset management, private equity, foreign exchange, payment of utility bills to customers, mobile and internet banking.

Large manpower with relevant banking skills to manage the operations.

Technological up gradation changing the way the banking is done. Anywhere banking and anytime banking has become a reality and thus making service faster, error free and competitive.

Banks have gained financial strengths in terms of Productivity and Profitability.

Weakness: Indian commercial banks, particularly PSBs have been witnessing the following challenges which have become bottlenecks in achieving competitive edge over their rivals. Low operating size High operating costs Inadequate deposit mobilization efforts High level of nonperforming assets Financial exclusion Complex and non-responsive organizational structures Credit to non-productive sectors like commercial estate Poor customer service Underutilized capacity particularly in rural areas Unsatisfactory work culture Feudalistic attitude of thee staff Ethnocentric and action flippant management Absence of organizational focus on the employees leading to their de motivation Inadequate access to global financial system The cost of banking intermediation in India is higher and bank penetration is far lower than in other markets Inadequate risk management skills particularly to cope with market risks and per Basel II norms Structural weaknesses such as a fragmented industry structure, restrictions on capital availability and deployment, lack of institutional support infrastructure, restrictive labour laws, weak corporate governance and ineffective regulations beyond Scheduled Commercial Banks (SCBs) The inability of bank managements (with some notable exceptions) to improve capital allocation, increase the productivity of their service platforms and improve the performance ethic in their organisations could seriously affect future performance. Opportunities: The market is seeing discontinuous growth driven by new products and services that include opportunities in credit cards, consumer finance and wealth management on the retail side, and in fee-based income and investment banking on the wholesale banking side. These require new skills in sales & marketing, credit and operations.

With increased interest in India, competition from foreign banks will only intensify. Given the demographic shifts resulting from changes in age profile and household income, consumers will increasingly demand enhanced institutional capabilities and service levels from banks. New private banks could reach the next level of their growth in the Indian banking sector by continuing to innovate and develop differentiated business models to profitably serve segments like the rural/low income and affluent/HNI segments; actively adopting acquisitions as a means to grow and reaching the next level of performance in their service platforms. Attracting, developing and retaining more leadership capacity Reach in rural India for the private sector and foreign banks. Large unbanked population which the industry can explore. With growth in SMEs, the opportunities for lending and making profits is huge.

Threats: Competition among banks for highly rated corporates needing lower amount of capital may exert pressure on already thinning interest spread. Further, huge implementation cost may also impact profitability for smaller banks. The biggest challenge is the re-structuring of the assets of some of the banks as it would be a tedious process, since most of the banks have poor asset quality leading to significant Proportion of NPA. This also may lead to Mergers & Acquisitions, which itself would be loss of capital to entire system Huge surplus manpower, absence of good work culture, antiquated labour laws, inflexible and inefficient labour and existence of strong labour union. Competition from new players.

3. Competitor Analysis: Bank of India is one of the competitors of Indian Bank. Lets analyse

Nationalised Banks

Bank of India (Amount in '< crore) 2006-07 2819 41511 498.00 2.71 5895 119882 35493 85116 8936 1563 5496 2608 4.55 3.96 19.92 0.88 11.75 0.95 200708 2980 40557 652.00 4.95 10589 150012 41803 113476 12355 2117 8126 2645 5.37 3.97 15.38 1.25 12.04 0.52 200809 3109 40155 833.00 7.49 13495 189708 52607 142909 16347 3052 10848 3094 5.69 4.09 13.90 1.49 13.01 0.44 200910 3228 39676 1011.00 4.39 14230 229762 67080 168491 17878 2617 12122 3668 4.97 3.45 14.54 0.70 12.94 1.31 201011 3387 39785 1284.00 6.20 17291 298886 85872 213096 21752 2642 13941 5068 4.53 3.59 18.28 0.79 12.17 0.91 Group All Banks' Aggregat Aggregat 20102010-11 e e 11 45640 76696 475082 1004182 1144.77 987.38 6.95 205857 3127122 942837 2311478 256490 28625 164135 53819 4.93 4.27 16.41 1.03 13.47 0.92 7.00 509813 5616432 1916053 4298704 491665 79564 298891 123129 4.73 4.45 17.05 1.10 14.17 0.97

Items No. of offices No. of employees Business per employee (in '< lakh) Profit per employee (in (' lakh) Capital and Reserves & surplus Deposits Investment Advances Interest income Other income Interest expended Operating expenses Cost of Fund (CoF) Return on advances adjusted to CoF Wages as % to total expenses Return on Assets CRAR Net NPA ratio

Source: RBI

Competition: (as on july 20) (source: www.moneycontrol.com)

Name SBI Bank of Baroda PNB Bank of India Canara Bank IDBI Bank Union Bank Indian Bank

Last Price 2,132.00 696.35 819.40 324.55 402.40 92.65 191.90 184.75

Market Cap.
(Rs. cr.)

Net Interest Income 106,521.45 29,673.72 36,428.03 28,480.67 30,850.62 23,369.93 21,144.28 12,231.32

Net Profit (Rs. Cr.) 11,707.29 5,006.96 4,884.20 2,677.52 3,282.72 2,031.61 1,787.13 1,746.97

Total Assets (Rs. Cr.) 1,335,519.24 447,321.46 458,194.01 384,535.47 374,160.20 253,376.80 235,984.44 141,419.20

143,066.76 28,716.59 27,792.30 18,646.05 17,826.32 11,844.45 10,565.04 7,940.00

Indian Bank It is an Indian state-owned financial services company headquartered in Chennai, India. It has 18,782 dedicated staff members, 1956 branches and is one of the big public sector banks of India. It has overseas branches in Colombo, Jaffna, Singapore, and 240 correspondent banks in 70 countries. Since 1969 the Government of India has owned the bank, which celebrated its centenary in 2007. It is the only Indian Bank other than State Bank of India to feature in the List of Fortune 500 Companies in the World. Indian Bank offers a wide variety of Banking Products and Services to its customers, including various Deposit Schemes, Loan Options, Financial Services, Stock Investment Services and a number of specialized services such as Remittance, Collection, 7 Day Banking Branches, Cash Management and Electronic Funds Transfer. History Indian Bank is one of the indigenous banks of India that emerged as a result of the Swadeshi Movement during the British Raj. The bank was established on 15th of August, 1907. One of the prime figures associated with the establishment of the bank was V. Krishnaswamy Iyer, a lawyer from Madras (Now Chennai). The bank soon spread its wings outside India too, and opened its branch in Colombo, Sri Lanka in the year 1932 and Rangoon, Burma in 1940. The bank was further nationalized by the Government of India in the year 1969. Other factual data relating to Indian Bank Year of Establishment Headquarters

Chairman & Managing Director No of Staff Subsidiaries

1907 Wing '2-C', No.254-260 , Avvai Shanmugam Salai, Royapettah Chennai - 600 014. Mr. T.M. Bhasin 18782 Indbank Merchant Banking Services Ltd IndBank Housing Ltd. IndFund Management Ltd

Total business revenue Net Profit

Rs 211988 crores Rs 1746 crores

Shareholding Pattern: (moneycontrol.com) Shareholding belonging to the category : "Promoter and Promoter Group" Total Shares held Shares pledged or otherwise encumbered

No.

Name of the Shareholder Number

As a % of grand total Number (A) + (B) + (C) -

% of Total shares held

As a % of grand total (A) + (B) + (C)

President of India Total

343,820,000 80 343,820,000 80

Shareholding belonging to the category : "Public and holding more than 1% of the Total No.of Shares" No. Name of the Shareholder Total Shares held 10,415,499 4,554,820 Shares as % of Total No. of Shares 2.42 1.06

1 2

Life Insurance Coporation of India Stichting Pensidenfonds ABP HDFC Standard Life Insurance Company Ltd Total

7,275,986

1.69

22,246,305

5.

Management Team: Name T M Bhasin B Raj Kumar N Krishna Mohan Amarjit Gupta M Butchi Rami Reddy Chintaman Mahadeo Dixit Rajeev Rishi Shaktikanta Das M Jayanath Sanjay Maken Narendra Kumar Agrawal

Designation Chairman and Managing director Executive Director Nominee Director Non Official Part Time Director Non Official Part Time Director Shareholder Director Executive Director Nominee Director Employee Director Non Official Part Time Director Shareholder Director

Profile of Key People: Mr. T.M. Bhasin: Shri T.M. Bhasin has assumed charge as Chairman & Managing Director of Indian Bank on 1st April 2010. Prior to assuming charge as Chairman & Managing Director, he was Executive Director of United Bank of India since 7th November 2007. EDUCATIONAL & PROFESSIONAL QUALIFICATIONS of Shri T M Bhasin are as under:-

MBA (Finance) from Faculty of Management Studies, (FMS), University of Delhi. (1984-87) Advanced Financial Management Programme at JFK School of Government, Harvard ,US (2004). LL.B. from Campus Law Centre, University of Delhi (1980-83) Certified Associate of Indian Institute of Bankers (CAIIB) (1988) M.Sc.(Gold Medalist) (1975-77) One Year Course in Criminology and Forensic Science (Delhi University Topper) (1983-84) Diploma in Office Organisation & Procedures from Punjab University, Chandigarh. (1982)

SPECIAL ACHIEVEMENTS Authored a Book on E-Commerce in Indian Banking 616 pages published by Authors Press, New Delhi (2002). Authored well researched articles on contemporary issues in renowned national dailies and Banking Journals / Magazines. As Honorary Secretary, IBA Delhi Chapter during August 2000 to November 2007 period coordinated and organized all major Banking Seminars, Bankers meets and other events under the aegis of IBA at Delhi.

Mr Rajeev Rishi: Shri. Rajeev Rishi has assumed charge as Executive Director of Indian Bank on 1st October 2010. Before joining Indian Bank, he was the General Manager of Oriental Bank of Commerce with rich experience in banking having worked in various parts of the country such as Chandigarh, Bhubaneswar, Kolkata, Dehradun, Pune, Mumbai, Ludhiana etc. He belongs to Chandigarh (UT) and holds degree in BA, LLB.

Mr. B Rajkumar: Shri B Raj Kumar, Executive Director of Indian Bank assumed charge on 1st January, 2012. Aged 56 years, Shri B Raj Kumar started his career with Andhra Bank in December, 1978 and has more than 33 years of experience of serving the bank. He is a Post Graduate in Engineering with MBA.and CAIIB .He has a wide field exposure having worked in various branches of Andhra Bank, viz., Bhilai, Chowringhee-Kolkata, Kurnool, Coimbatore, Bangalore, Trivandrum, Mumbai etc. He was also General Manager of Hyderabad and New Delhi zones of the Bank. He was heading the Integrated Treasury of Andhra Bank as General Manager and before joining Indian Bank, has gained expertise in the field of Investments and

International Banking. He has attended a number of training programmes that includes a programme on Derivates in Integrated Treasury Management at Asian Institute of Management, MANILA.

Financial performance of the company: (www.moneycontrol.com)

Yearly Results of Indian Bank (All fig in Rs.Crores) Mar '12 Sales Turnover Other Income Total Income Total Expenses Operating Profit Profit On Sale Of Assets Profit On Sale Of Investments Gain/Loss On Foreign Exchange VRS Adjustment Other Extraordinary Income/Expenses Total Extraordinary Income/Expenses Tax On Extraordinary Items Net Extra Ordinary Income/Expenses Gross Profit Interest PBDT Depreciation Depreciation On Revaluation Of Assets PBT Tax Net Profit Dividend Tax Dividend (%) Earnings Per Share Book Value Equity Reserves Face Value 12,231.32 1,179.83 13,411.15 3,382.27 8,849.05 -----52.33 --10,028.88 7,813.32 2,267.90 --2,267.90 520.93 1,746.97 --40.65 -429.77 8,807.63 10.00 Mar '11 9,361.03 1,181.89 10,542.92 2,583.54 6,777.49 --------7,959.38 5,324.92 2,634.46 --2,634.46 920.39 1,714.07 --39.88 -429.77 7,496.77 10.00 Mar '10 7,714.37 1,316.41 9,030.78 2,125.99 5,588.38 --------6,904.79 4,553.18 2,351.61 --2,351.61 796.62 1,554.99 --36.18 -429.77 6,217.25 10.00

Performance (march 2012): Product Name Income on investments Interest on Balances with RBI Interest/Discount on Adv/Bills Others

Unit Rs. Rs. Rs. Rs.

value (Rs.Cr) 2,790.32 17.13 9,423.87 0.00

Qty (Nos.) 0 0 0 0

%Sales Turnover 22.81 0.14 77.05 0.00

Source:http://www.indiainfoline.com/Markets/Company/Background/Finished-Goods/IndianBank/532814

Nationalised Banks

Indian Bank
(Amount in crore) Group All Banks'

'<

Items

2006-07

200708

2008-09

2009-10

201011

Aggregat
2010-11 e

Aggregate
2010-11

No. of offices No. of employees Business per employee (in '< lakh) Profit per employee (in (' lakh) Capital and Reserves & surplus

1478 20892 364.00 3.64 3841

1577 20548 488.00 4.91 5160

1680 19993 617.00 6.23 7136

1792 19641 761.00 7.92 8272

1894 19311 930.00 8.88 9521

45640 475082 1144.77 6.95 205857

76696 1004182 987.38 7.00 509813

Deposits Investment Advances Interest income Other income Interest expended Operating expenses Cost of Fund (CoF) Return on advances adjusted to CoF Wages as % to total expenses Return on Assets CRAR Net NPA ratio

47091 20878 29058 4195 823 2413 1247 4.97 4.93 24.01 1.46 14.14 0.35

61046 21915 39839 5213 1006 3159 1400 5.46 4.71 21.22 1.64 12.74 $ 0.24

72582 22801 51397 6830 1035 4222 1588 6.13 5.02 19.84 1.62 13.98 0.18

88228 28268 62146 7714 1316 4553 1730 5.56 4.66 19.30 1.67 12.71 0.23

105804 34784 75250 9361 1182 5325 1926 5.39 4.94 18.38 1.53 13.56 0.53

3127122 942837 2311478 256490 28625 164135 53819 4.93 4.27 16.41 1.03 13.47 0.92

5616432 1916053 4298704 491665 79564 298891 123129 4.73 4.45 17.05 1.10 14.17 0.97

Source: Reserve Bank of India

SWOT Analysis of Indian Bank: Strenghts: 1. Rural banking expertise 2. Strong international network of banks with 240 overseas correspondent banks in 70 countries 3. High end banking technology with core banking at all 1956 branches 4. It has 22,000 employees 5. Diversified banking activities under 3 subsidiaries i.e. Indbank Merchant Banking Services Ltd, IndBank Housing Ltd, IndFund Management Ltd Weakness: 1. Less presence in India as it has competition in urban areas as well as rural areas 2. Limited advertising in comparison with leading banks 3. Low number of ATMs and branches as compared to other big bank brands Opportunity: 1. Urban market banking and retail banking 2. Favourable Government rural schemes 3. More expansion in untapped rural markets Threat: 1. Economic crisis and fluctuating market scenarios 2. Highly competitive environment

3. Stringent Banking Norms by Govts and RBI.

Various strategies Employed by the Indian Bank:

(http://www.sebi.gov.in/dp/indianbank.pdf)

1. Developing Technological capabilities: The development of efficient means of reaching customers and processing transactions is a key element of the managements goal to expand their profitability and to capitalize on opportunities for organic growth. They have revised their IT strategy and taken initiatives including the implementation of the Core Banking Solutions through their wide area network, increasing the number of ATMs and introducing alternate delivery channels (e.g., internet banking, mobile banking and telebanking). They seek to improve their services by using technology for better credit management, extending their rural reach and increasing data storage capabilities. They are also evaluating opportunities to implement certain technological advancements such as e-enabled smart card technology and participating in egovernance. They believe that technology offers unparalleled opportunities to reach out to their customers in a cost-efficient manner. 2. Maintaining and enhancing their franchise in the agriculture and SME sectors: The management intends to maintain and enhance the banks position as one of the leading banks for agricultural lending in India. They have introduced innovative products such as Kisan credit cards, which provide farmers with convenient and assured financing for their production, investment and consumption activities. They have a dominant presence in the agriculture sector, particularly in southern India. They also intend to further expand their agricultural sector lending activities to other areas. Another aspect of their strategy is to further strengthen their ties with the

agricultural community by providing training and social support programs for the rural populace. They intend to focus on giving loans to SMEs to facilitate their establishment, expansion and modernization of businesses. They have identified and created a separate business segment for SMEs and introduced centralised processing of credit applications to quicken the credit decisions and improve lending to this particular segment. 3. Enhancing their retail banking business and focus on small businesses: They intend to continue their focus on growing their retail banking business. The retail sector has emerged as a rapidly growing opportunity for banks that have the skills and infrastructure to adequately service this market. The keys to their retail strategy are developing new products and services, networking their branches, improving customer service and developing their distribution channels, including their ATMs and internet banking facilities. In addition, they believe that there is potential to generate additional revenue by focusing on higher value-adding products and by increasing cross-selling across their different distribution channels. They expect that by increasing the sale of high margin products, such as mutual fund products, insurance products, and credit and debit cards, they will also increase their fee-based revenue. They place emphasis on financing and nurturing small entrepreneurial activities. Their focus is to provide loans to entrepreneurs for certain activities, such as the purchasing of commercial space and new or second hand shops. 4. Build upon and expand their rural area business: They have traditionally had a strong presence in the rural and semi urban areas. They believe there is substantial potential for expanding their business by increasing their focus and leveraging their strength in these areas, including rolling out new products and services and increasing the accessibility of their products. They have focused on playing an active role in providing microfinance through SHGs. They believe that financial inclusion would pave the way for marketing of their products and services to people who do not have access to banking services. 5. Strengthen and expand their corporate and commercial product and service offerings: They seek to strengthen their position in the corporate and commercial sector by expanding their product and service offerings to growth-oriented small, medium and large sized businesses. They seek to increase their customer base by offering innovative products and servicing the needs of these customers through specialized branches. Additionally, they seek to cross-sell their fee-based products and services to their current customer base and thereby increase our income from these products and services. 6. Maintaining high asset quality standards through comprehensive risk management: They have improved their loan and investment portfolios by carefully targeting their customer base and implementing a risk assessment process and other risk monitoring and remedial procedures. They actively monitor their loans and reassess their credit

ratings once a year or more frequently if they are at risk. They also apply aggressive remedial policies to recover non-performing loans. In addition, they maintain internal policy guidelines concerning exposure to individual industries and concentration of loans. 7. Leveraging on strong brand equity and expansive branch network: They are currently celebrating their centenary and they believe that they enjoy a strong brand perception. We strive to further build our Indian Bank brand through a focused marketing approach and using our widespread network of branches and other delivery channels. They plan to use the brand equity enjoyed by the Bank to enhance our business. They have adopted a new symbol to commemorate their centenary celebrations.

8. Attract and retain skilled and experienced professionals: They believe the recruitment, training and retention of skilled and experienced professionals are essential to the success of their business. They intend to continue attracting the appropriate level of talent from across India through the right mix of recruitment and retention strategies. 9. Control their costs: They have made a concerted effort to achieve a low overall cost of funds. They strive to do this by seeking operating efficiencies, developing deposit products with lower costs and regularly reviewing their costs for areas where we can achieve cost controls while continuing to develop their business. 10. Pursuing selective strategic alliances: They aim to deliver a comprehensive range of financial products under one brand with a view to become a financial supermarket. They have signed a Memorandum of Understanding (MoU) with Oriental Bank of Commerce and Corporation Bank to create a strategic alliance with a view to collectively face the challenges of consolidation, convergence and competition without sacrificing the legal identity of the Bank to harness the economies of scale. Additionally, they have entered into alliances with mutual funds, life insurers and non-life insurers to distribute their products. They have also signed an MoU with the ministry of Railways to install and operate ATMs at select Railway Stations. They will continue to seek to enter into strategic alliances with other banks and financial institutions where management believes such alliances will provide advantages to their core business.

References: 1. http://www.indianbank.in/ 2. http://www.sebi.gov.in/dp/indianbank.pdf 3. http://www.indiainfoline.com/Markets/Company/Background/Finished4. 5. 6. 7.

Goods/Indian-Bank/532814 http://blogs.reuters.com/great-debate/2012/03/13/three-disturbing-trends-incommercial-banking/ www.moneycontrol.com http://finance.yahoo.com/news/research-markets-global-banking-industry210800014.html http://global.banking.2020.s3-website-us-east1.amazonaws.com/chap04.html#landscape

8. www.wikipedia.com 9. http://www.businesswire.com/news/home/20120717006797/en/ResearchMarkets-Global-Banking-Industry-2012-2017-Total 10. http://myiris.com/newsCentre/storyShow.php?fileR=20120511151817038&dir=201 2/05/11&secID=resultanal