Analysis Of Business, Financial Statement And Customer Satisfaction Of Lakshmi

Vilas Bank

A Project Submitted To
University Of Mumbai For Completion Of The Degree Of
Masters In Commerce

Under The Faculty Of Commerce

By

Sanjana Hanumant Kevale

Under the guidance of

Virendra Singh

S.M.Shetty College Of Science, Commerce & Management Studies,

Powai Mumbai 400072

November 2021

1
Analysis Of Business, Financial Statement And Customer Satisfaction Of Lakshmi
Vilas Bank

A Project Submitted To
University Of Mumbai For Completion Of The Degree Of
Masters In Commerce

Under The Faculty Of Commerce

By

Sanjana Hanumant Kevale

Under the guidance of

Virendra Singh

S.M.Shetty College Of Science, Commerce & Management Studies,

Powai Mumbai 400072

November 2021

2
 PAGES IN
SR. NUMBER Index
NUMBER

CHAPTER 01 INTRODUCTION

CHAPTER 02 RESEARCH METHODOLOGY

CHAPTER 03 LITERATURE REVIEW

Data Analysis, Interpretation and

CHAPTER 04
Presentation

CONCLUSIONS &
CHAPTER 05
SUGGESSIONS

CHAPTER 06 Bibliography

CHAPTER 07 ANNEXURE

3
 INTRODUCTION

What is a bank?
The lifeblood of trade, commerce, and industry is finance. The banking industry now serves as
the backbone of modern enterprise. The financial system is crucial to any country's development.
The word bank is derived from either the old Italian word banca or the French word banque,
both of which refer to a bench or a money exchange table. For the purpose of lending or
exchanging, European money lenders or money changers used to display (show) coins from
various countries in large heaps (quantity) on benches or tables.
It is a financial institution and a financial intermediary that receives deposits and invests them in
lending activities, either directly or indirectly through capital markets.A bank is a financial
institution that takes deposits, makes loans, pays checks, and offers other financial services. A
bank is a financial middleman that protects, transfers, exchanges, and lends money. One of the
most important functions of banks is to connect people with money, such as investors and
depositors, with those who need money, such as individuals or businesses requesting loans. A
bank serves as a conduit between consumers with capital deficiencies and those who have capital
surpluses. The medium of exchange is distributed through banks. Banking is a commercial
enterprise. To make money, banks must offer their services, which they must market and manage
in a competitive market. Banks are financial middlemen that store, move, trade, and lend money,
and they, like other businesses, must make a profit to stay in business. Understanding this
fundamental concept can help you comprehend how banking systems work as well as many
modern banking and finance trends.
The services that banks provide to their customers are nearly completely focused on managing
money or
finances for other individuals. Banks play a crucial role in our economy. The basic duty of banks
is to put
the money in their account holders' accounts to good use by lending it to individuals in need.
Money is a means of exchange, or a system for valuing goods and services that has been agreed
upon.
Precious stones, animal products, and other valuable things were once utilised as a means of
exchange,
and are still used in some places today

4
Before the invention of money, this method was in use for millennia. People used to trade
commodities or services in exchange for other things or services. This technique is also known as
the "Barter System," and it is an age-old method for people to trade services and things. Because
salt was necessary for survival and was a limited item at the time, Roman soldiers were
occasionally paid with it.
A medium of exchange could be anything with a predetermined value. Many different types of
money are used nowadays. Money is any thing or record that is widely accepted in a specific
socio-economic setting or country as payment for goods and services and debt repayment.
Money has four major functions: it is a medium of commerce, a unit of account, a store of value,
and, in the past, a standard of postponed payment. Money can be defined as any object or secure
verifiable record that performs certain functions
Money simply indicates how much something is worth, whether it is a new gadget or two hours
of your effort. A bank can function as your agent for using or protecting your money if you have
it.

What is the process of establishing a bank?

Banks and money are critical to the functioning of economies, and they have far-reaching
implications for entire cultures and nations. As a result, they are heavily regulated, with
numerous authorities and governments advising banks to follow tight protocols and rules. Banks
can be chartered by the federal or state governments in the United States, whereas the Indian
government sets the requirements for operating any bank or its branches. Most banks are
corporations or cooperative societies, and they may be owned by individuals, corporations, or a
combination of the two. Governments regulate banks all around the world to ensure the safety
and stability of the money supply and the country

5
 Banking In India
In India, modern banking began in the latter decade of the 18th century. The Bank of Hindustan,
founded in 1770 and liquidated in 1829–32, and the General Bank of India, founded in 1786 but
failed in 1791, were among the first banks. The State Bank of India is India's largest and oldest
bank that is still operational (SBI). In mid-June 1806 it was founded and began operations as the
Bank of Calcutta. It was called the Bank of Bengal in 1809. The other two were the Bank of
Bombay in 1840 and the Bank of Madras in 1843, all of which were formed by a presidential
government. The three banks amalgamated in 1921 to become the Imperial Bank of India, which
became the State Bank of India in 1955 after India's independence. The presidential banks, as
well as their predecessors, served as quasi-central banks for many years until the Reserve Bank
of India was founded in 1935 under the Reserve Bank of India Act, 1934.
The State Bank of India (Subsidiary Banks) Act, 1959, gave the State Banks of India authority of
eight state-associated banks in 1960. These are now known as the bank's affiliate banks. The
Government of India nationalized 14 major commercial banks in 1969, with Bank of India being
one of them. Six more private banks were nationalized in 1980. The majority of lenders in the
Indian economy are nationalized banks. Because of their scale and extensive networks, they
dominate the banking industry.
The Indian banking industry is divided into two types: scheduled and non-scheduled banks. The
scheduled banks are those included in the Reserve Bank of India Act, 1934's 2nd Schedule.
Nationalized banks, State Bank of India and its subsidiaries, Regional Rural Banks (RRBs),
foreign banks, and other Indian private sector banks are among the scheduled banks. On April 1,
2017, the State Bank of India (SBI) amalgamated its associate banks to form India's largest bank.
SBI now has a global ranking of 236 on the Fortune 500 index as a result of this transaction.
Commercial banks include both scheduled and non-scheduled commercial banks that are
governed by the Banking Regulation Act of 1949.
Banking in India is generally mature in terms of supply, product range, and reach, yet reaching
rural India and the poor remains a struggle. The government has taken steps to solve this by
extending the State Bank of India's branch network and providing microfinance through the
National Bank for Agriculture and Rural Development (NABARD).
The Indian banking industry is the most dominating part of the financial sector and plays a key
role in the country's economic development

6
Banks assist in the transfer of savings to investments and so promote economic growth.
Allocating savings to investments with a higher chance of yielding a higher return Commercial
banks and co-operative credit institutions make up India's banking sector, which is robust.
Scheduled commercial banks (SCBs) and non-scheduled commercial banks are two types of
commercial banks. SCBs are short-circuit breakers.

Types Of Bank
Banks come in a variety of shapes and sizes. Teaser: Different Types of Banks serve a wide range
of financial services in addition to storing deposits and lending money. The three primary
categories of banks are commercial, retail, and central banks. Recognize the distinctions between
the three:

Commercial Bank: A commercial bank is a financial organization that accepts deposits, provides
checking account services, makes various loans, and provides people and small companies with
basic financial products such as certificates of deposit (CDs) and savings accounts. The majority
of people do their banking with a commercial bank. It offer services such as checking and
savings accounts, credit cards, investment services, and other financial products. Previously, only
supplied credit and debit cards, bank accounts, deposits and loans, as well as secured and
unsecured loans, to businesses. Commercial banks are competing more with investment banks in
money market operations, bond underwriting, and financial consulting activities as a result of
deregulation.
Retail bank: It were created to assist those who were not served by commercial banks. Retail
banking, often known as consumer banking or personal banking, is a type of banking that focuses
on individuals rather than enterprises. Individual customers can use retail banking to manage
their money, obtain credit, and deposit funds in a secure manner. Individual customers should be
able to access basic financial services. Customers can use these institutions to save money, get
loans, and invest. They also provide a comprehensive range of financial services to a diverse
clientele. Safe deposit boxes, checking and savings accounting, certificates of deposit (CDs),
mortgages, and vehicle loans are examples of products and services offered by savings banks,
savings and loan associations, and credit unions

7
Central banks: A central bank, reserve bank, or monetary authority is an institution that regulates
a state's commercial banking system and manages the currency and monetary policy of that state
or formal monetary union. A central bank, unlike a commercial bank, has a monopoly on
growing the monetary base. Most central banks also have supervisory and regulatory powers to
maintain the stability of member institutions, prevent bank runs, and deter member banks from
engaging in irresponsible or fraudulent activities.

8
 Introduction On Lakshmi Vilas Bank

Lakshmi Vilas Bank is an Indian private sector bank established in 1926 in Karur district in
Tamil Nadu. Lakshmi Vilas Bank has is headquarters in Chennai India. It was founded on 3rd
November 1926, by VSN Ramalinga Chettiar. Subramanian Sundar was MD & CEO of Lakshmi
bank. Since 2020 Subramanian Sundar is the CEO.

As of November 2020, their are 566 branches in 19 states and 1 union territory.

On 27 November 2020, the bank was merged with the Indian subsidiary of DBS Bank

It is traded as BSE. 534690, NSE LAKSHVILAS. It gives banking as well as financial service.
The bank was defunct on 27 November 2020, 11 months ago.

On 27 November 2020, Lakshmi Vilas Bank, has been amalgamated with DBS Bank India
Limited. The scheme of amalgamation is under the powers of the Government of India and
Reserve Bank of India under the Section 45 of the Banking Regulation Act, 1949, India.

DBS is a leading financial services group in Asia and it is present in across 18 countries. With its
wide-ranging network of operations in Asia, DBS has been given the "Safest Bank in
Asia" award by Global Finance for 12 successive years from 2009 to 2020. DBS has been in
India since 1994 and we transformed our India operations to a wholly owned secondary (DBS
Bank India Limited) in March 2019 to expand our franchise and build larger scale. DCB was
also ranked No 1 in India by Forbes in 2020 list of the World’s Best Banks.
The bank was established to meet the financial needs of Karur
residents, as well as citizens involved in commerce, business,
and agriculture. The Reserve Bank of India granted the bank
a banking license, and it became a scheduled commercial
bank in 1958. The bank began spreading throughout India in
1974. Karnataka, Andhra Pradesh, Maharashtra, and other
important cities also have branches. In 1976, the bank was
designated as an Authorized Dealer in Foreign Exchange.
Core banking services were launched in 2006, and by 2008, all of the bank's branches had been
made compliant.

9
 HISTORY OF LAKSHMI VILAS BANK

The Lakshmi Vilas Bank was established in 1926 by a group of seven Karur businessmen led by
V. S. N. Ramalinga Chettiar. Their goal was to meet the financial needs of persons working in
trading, industry, and agriculture in Karur and the surrounding areas. The bank was established
on November 3, 1926, under the Indian Companies Act, 1913, and received its certificate to
begin operations on November 10, 1926.
Following the passage of the Banking Regulations Act, 1949, and the establishment of the
Reserve Bank of India as the banking sector's regulator, the bank received its banking license
from the RBI on June 19, 1958, and on August 11, 1958, it was designated as a'scheduled
commercial bank,' indicating its ability to operate as a full-fledged commercial bank. Between
1961 and 1965, when the bank acquired nine other banks, Lakshmi Vilas Bank saw a significant
increase of its branch network. To take advantage of prospects in the pan-Indian market, the bank
began expanding its branch network beyond Tamil Nadu in 1974. As a result, branches were
formed in the neighboring states of Andhra Pradesh, Karnataka, and Kerala, as well as in major
financial centers like Mumbai, New Delhi, and Kolkata, as well as other important business
centers in Maharashtra, Gujarat, and Madhya Pradesh. Meanwhile, in 1976, the bank was
designated as an Authorized Dealer in Foreign Exchange, allowing it to offer a full range of
services to customers involved in international trade and international travellers. Data processing
and computerization began in earnest in 1993 by the bank's own in-house team, after
mechanisation was introduced in the Administrative Office as early as 1977. The Core Banking
Solution (CBS) was implemented in October 2006, and by March 2008, all of the bank's
branches had been moved to CBS.
The board of Lakshmi Vilas Bank approved a merger with Indiabulls Housing Financing Ltd, the
country's second largest housing finance company, on April 5, 2019. Shareholders of Indiabulls
will own 90.5 percent of the merged firm, which will be known as Indiabulls Lakshmi Vilas
Bank, while LVB will own the remaining 9.5 percent. [6] For the first nine months of FY1920,
the combined business will have a net worth of 19,472 crore and a loan book of 1,23,393 crore.
However, the initiative was shelved after the RBI declined to approve it.

10
 Product and services offered by Lakshmi Vilas Bank:

Commercial Banking: A commercial bank is a financial institution that accepts public deposits
and provides loans for consumption and profit-making investment.
To distinguish it from a retail bank and an investment bank, it can also refer to a bank, or a
section of a big bank, that deals with companies or large/middle-sized businesses. Commercial
banks include both private and governmental sector institutions.

Financial Services: Financial services are economic services offered by the finance industry,
which includes credit unions, banks, credit-card companies, insurance companies, accountancy
firms, consumer-finance firms, stock brokerages, investment funds, individual managers, and
some government-sponsored organisations.

Insurance: Insurance is a way of safeguarding against financial loss. It's a type of risk
management that's generally utilised to protect against the danger of a speculative or
unpredictable loss.An insurer, an insurance company, an insurance carrier, or an underwriter is a
company that sells insurance. A policyholder is a person or entity who purchases insurance,
while an insured is a person or entity who is covered by the policy. Although policyholder and
insured are frequently used interchangeably, coverage can sometimes extend to other insureds
who did not purchase the insurance. In exchange for the insurer's pledge to repay the insured in
the case of a covered loss, the policyholder assumes a guaranteed, known, and generally minor
loss in the form of payment to the insurer. The loss might be financial or non-financial, but it
must be reducible to monetary terms and usually involves something in which the insured has an
insurable interest based on ownership, possession, or a prior relationship.
The insured is given a document, known as an insurance policy, that spells out the terms and
conditions under which the insurer would compensate the insured, or their designated beneficiary
or assignee. he amount of money charged by the insurer to the policyholder for the coverage set
forth in the insurance policy is called the premium. If the insured experiences a loss which is
potentially covered by the insurance policy, the insured submits a claim to the insurer for
processing by a claims adjuster. A mandatory out-of-pocket expense required by an insurance
policy before an insurer will pay a claim is called a deductible (or if required by a health
insurance policy, a copayment

11
The insurer may hedge its own risk by taking out reinsurance, whereby another insurance
company agrees to carry some of the risks, especially if the primary insurer deems the risk too
large for it to carry.

Invesstment Banking: A financial services organization or corporate division that participates in

advisory-based financial transactions on behalf of people, companies, and governments is known
as an investment bank. Traditionally connected with corporate finance, a bank like this might
help a customer raise money by underwriting or serving as the client's agent in the issue of
securities. An investment bank may also provide ancillary services such as market making,
derivatives and equity securities trading, and FICC services to corporations involved in mergers
and acquisitions (M&A) (fixed income instruments, currencies, and commodities). In addition to
their investment research businesses, most investment banks also include prime brokerage and
asset management sections. The Bulge Bracket (highest tier), Middle Market (mid-level
enterprises), and Boutique Market are the three types of businesses that make up the industry
(specialized businesses).
Investment banks do not accept deposits, unlike commercial and retail banks.
The United States maintained a division between investment banking and commercial banking
from the introduction of the Glass–Steagall Act in 1933 until its repeal by the Gramm–Leach–
Bliley Act in 1999. Other industrialised countries, including the G7, have not kept such a
distinction in the past. The Volcker Rule establishes some institutional separation of investment
banking services from commercial banking as part of the Dodd–Frank Wall Street Reform and
Consumer Protection Act of 2010 (Dodd–Frank Act of 2010).
All investment banking activity falls into one of two categories: "sell side" or "purchase side."
The "sell side" entails trading securities for cash or other securities (e.g., facilitating transactions,
market-making), as well as securities promotion (e.g. underwriting, research, etc.). The "buy
side" entails advising institutions that purchase investing services. The most frequent types of
buy-side businesses include private equity funds, mutual funds, life insurance companies, unit
trusts, and hedge funds.
An investment bank can also be divided into private and public activities, with a screen between
the two to prevent data from being shared. The bank's private portions deal with confidential
insider information that isn't publicly available, while the public areas, such as stock research,
deal with publicly available information

12
In order to provide investment banking services in the United States, an advisor must be a
registered broker-dealer and be regulated by the Securities and Exchange Commission (SEC) and
the Financial Industry Regulatory Authority (FINRA).

Mortgage Loan: A mortgage loan, or simply mortgage, is a loan used by real estate buyers to
raise cash to purchase real estate, or by current property owners to borrow finances for any
reason while putting a lien on the property being mortgaged. Mortgage origination is the
procedure by which the loan is "secured" on the borrower's property. This means that if the
borrower defaults on the loan or otherwise fails to comply with its conditions, a legal process is
put in place that permits the lender to take ownership of and sell the secured property
("foreclosure" or "repossession") to pay off the loan. The term "mortgage" comes from a Law
French term that meant "death pledge" in the Middle Ages and refers to the pledge ceasing
(dying) when the obligation is satisfied or the property is removed through foreclosure. "A
borrower giving consideration in the form of a collateral for a benefit (loan)" is another way to
characterise a mortgage. The term "mortgage" comes from a Law French term that meant "death
pledge" in the Middle Ages and refers to the pledge ceasing (dying) when the obligation is
satisfied or the property is removed through foreclosure. "A borrower giving consideration in the
form of a collateral for a benefit (loan)" is another way to characterise a mortgage.
Individuals who are mortgaging their homes or firms who are mortgaging commercial property
are both examples of mortgage borrowers (for example, their own business premises, residential
property let to tenants, or an investment portfolio).
Depending on the country, the lender will most likely be a financial institution such as a bank,
credit union, or building society, and the loan arrangements can be made directly or indirectly
through intermediaries. The size of the loan, the loan's term, the interest rate, the manner of
repayment, and other parameters of mortgage loans can all vary significantly. The lender's rights
over the secured property take precedence over the borrower's other creditors, which means that
if the borrower goes bankrupt or insolvent, the other creditors will only be reimbursed their debts
owed to them if the mortgage lender is paid in full first.

Private Banking: Private banking refers to banking, investment, and other financial services
given by banks and financial institutions primarily to high-net-worth individuals (HNWIs), who
are described as having a lot of money or a lot of assets. Private banking is a more specialised
type of wealth management that caters to the ultra-wealthy.
13
The phrase "private" refers to customer service that is more personalised than that provided by
mass-market retail banks, and is usually provided by dedicated bank advisers. It mainly consisted
of banking services (deposit taking and payments), discretionary asset management, brokerage,
limited tax advising services, and some basic concierge-type services, all of which were provided
by a single authorised relationship manager until recently.

Retail banking: It is also known as consumer banking or personal banking, is when a bank
provides services to the general public rather than businesses, corporations, or other banks,
which is referred to as wholesale banking. Savings and transactional accounts, mortgages,
personal loans, debit cards, and credit cards are all examples of retail banking services.
Investment banking and commercial banking are distinct from retail banking. It can also refer to
a bank's specific customer service division or department.
❑ Typical banking services offered by retail banks include:
• Transactional accounts
• Checking accounts (American English)
• Current accounts (British English)
• Savings accounts
• Debit cards
• ATM cards
• Credit cards
• Traveler's cheques
• Mortgages
• Home equity loans
• Personal loans
• Certificates of deposit/Term deposits

• Wealth Management: Individuals and families ranging from affluent to high-net-worth (HNW)
and ultra-high-net-worth (UHNW) individuals and families are served by wealth management
(WM) or wealth management advice (WMA). It is a discipline that entails organising and
arranging money in order to aid in the growth, preservation, and protection of wealth while
passing it on to the family in a tax-efficient and wishes-based manner. Tax planning, wealth
protection, estate planning, succession planning, and family governance are all part of wealth
management.
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 Type of loan offered by LVB

Lakshmi Vilas Bank and DBS Bank have amalgamated as of November 25, 2020.Lakshmi Vilas
Bank is a government-owned commercial bank that serves people's financial requirements. The
following businesses are eligible for an MSME loan from the bank:
• Individuals
• Partnerships
• private limited companies
• public limited companies
• HUFs, and any other legally permissible entity
• HUF is not allowed to be a partner in a partnership.
• MSMEs that work in the trading, manufacturing, and service industries

Interest Offered BY LVB:

• Rates of Interest Loans to MFIs for financing to small businesses: 10.90% and up
• Loans to medium-sized businesses: 10% and up (Working Capital)
• Loans under the PMEGP start at 12.75 percent and go up from there.
• From 11.75 percent onwards with the Lakshmi Rental Loan
• Commercial Vehicle Loan from Lakshmi: 11.25 percent and up
• Small Business Loan Lakshmi: 14 percent and up
• Food and agro-based processing unit loans: 10.75 percent and up

Types Of MSME Loan:

❑ Business term Loan:
• Lakshmi Vilas Bank - Company Term Loan
• Interest Rate As per business needs
• Age Limit Max. 70 years at loan maturity
• The minimum loan amount is Rs. 25 lakh
• The maximum loan amount is Rs. 5 crore.
• 120-month repayment period

15
❑ Business Credit Loan:
• Interest based on the needs of the business.
• Limit Operative Account with Fixed Overdraft Limit
• Minimum Loan Amount Rs. 25 lakh
• Maximum Loan Amount Rs. 5 crore
• Renewable 1 year later
• Stock statements and DP up keep are done on a monthly basis is not required.
• Business must have been in operation for at least three years.

❑ Cash Credit Loan:

• Interest Rates are determined by the lending policies of the bank.
• The type of loan Open a Cash Credit Account (OCC)
• Repayment Every year, the Tenure Account must be renewed.
• Margin of 25% on stocks and 50% on receivables is required,
• with collateral equal to the company's loan amount charged on fixed assets.
• Customers who already have an account can take advantage of this service
• Finance-backed security hypothecation of current assets

In addition to various MSME loans, Lakshmi Vilas Bank also provides Kissan Credit Cards,
Agriculture Term Loans, Commercial Vehicle Loans, Lakshmi Rental Loans, and Export Credit
Loans.

❑ Required Documents:
• Completed Application Form
• Photos the size of a passport
• Returns on GST
• Financial Statements Estimated and Projected
• Last two years' KYC paperwork for the applicant, guarantors, and promoters Financials that
have been audited Statements of Flow/Cash Flow, Profitability Estimates, and DSCR
Calculations
• All company/enterprise registrations/approvals Collateral property papers
• Additional documentation as required

16
❑ Lakshmi Vilas Bank Personal Loan Overview
• Minimum Interest Rate 11.4 percent p.a
• loan amount: Rs.10,000 There is no upper limit.
• 0.25 percent of the loan amount is charged as a processing fee. For secured overdrafts, a
minimum of Rs.100 is required; for demand loans, a minimum of Rs.50 is required.

If you want to apply for a Lakshmi Easy Loan, you'll need to submit a list of documents to the
bank. Some of the documentation that will be necessary are listed below:
• Identification proof
• Address proof is required.
• Bank statement
• proof of age
• Working men and women's pay stubs and Form 16

Eligibility
The loan is available to anyone with National Savings Certificates (NSCs), Kisan Vikas Patras
(KVPs), or Life Insurance Corporation (LIC) insurance. Individuals who hold these documents
in a group can also apply.

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 LAKSHMI VILAS BANK Branches in MUMBAI

The list of LAKSHMI VILAS BANK branches in the MUMBAI District of MAHARASHTRA State
is shown below.

DHAMTARI BRANCH
Address: DOOR NO 10, OPPOSITE TO MAHAVIR DHARMASTALA, RAIPUR
ROAD,DHAMTARI
District: MUMBAI
State: MAHARASHTRA
IFSC Code: LAVB0000220
KANDIVALI BRANCH
Address: NO 31 32 33 CENTRUM PREMISES CO OP SOCITIES LTD LOKHANDWALA
TOWNSHIP AKURLI ROAD MUMBAI 400101
District: MUMBAI
State: MAHARASHTRA
IFSC Code: LAVB0000322
KHAR BRANCH
Address: SHOP NO 2 DARVESH GRAND FOURTH ROAD KHAR WEST
District: MUMBAI
State: MAHARASHTRA
IFSC Code: LAVB0000323
MALAD WEST BRANCH
Address: MANAS BUILDING, KHANDELWAL LAYOUT, PLOT NO - 12
District: MUMBAI
State: MAHARASHTRA
IFSC Code: LAVB0000422
COMMERCIAL BANKING BRANCH MUMBAI BRANCH
Address: BHARAT HOUSE 104 BS MARG FORT MUMBAI MAHARASTRA 400001
District: MUMBAI
State: MAHARASHTRA
IFSC Code: LAVB0000994

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 Lakshmi Vilas Bank's SWOT Analysis

SWOT analysis is a strategic planning technique that was created at Stanford in the 1970s. The
acronym SWOT stands for Strengths, Weaknesses, Opportunities, and Threats, and it is a
structured planning tool for evaluating the four characteristics of an organization, project, or
business endeavour. A SWOT analysis is a basic yet effective framework for utilising an
organization's strengths, addressing its weaknesses, reducing threats, and maximising
opportunities.
A SWOT analysis entails determining the organization's strengths and weaknesses, as well as the
opportunities and threats that exist in the market. It can be used to investigate a variety of
business situations, including:When deciding on the best strategy to accomplish future growth,
an organization might do a SWOT analysis for each of its products, services, and markets.It's
critical to gain a handle on the present condition at the start of a project. Appreciating your
strengths, researching possibilities, evaluating weaknesses, and detecting dangers are all good
ways to get your startup off to a good start.
The SWOT analysis will assist you in understanding the company's position, allowing you to
generate ideas and make decisions on how to capitalise on strengths, exploit opportunities,
mitigate weaknesses, and protect against threats. The following are four advantages of
conducting a SWOT analysis for your company:
Identify Fundamental Competencies - It gives you a clear picture of your core skills and helps
you to build on them to fulfil your business goals
Recognize Your Weaknesses - One of the first steps in improving your organization is to
recognise its flaws. It exposes your flaws and gives you the opportunity to correct them.
It will assist you in exploring the opportunities that are available to you. You can use this to
create strategic growth strategies that are based on your strengths and shortcomings.
Recognize Potential Dangers - It aids in the analysis of potential threats to your firm, allowing
you to make appropriate modifications to corporate policies and actions. It also makes it easier to
make backup or alternate plans, as well as contingency plans, and so on.

Lakshmi Vilas Bank's SWOT analysis examines the brand's strengths, weaknesses, opportunities,
and threats. The internal aspects in the Lakshmi Vilas Bank SWOT Analysis include strengths
and weaknesses, while the exterior factors are opportunities and threats SWOT Analysis is a
tried-and-true management paradigm that allows a company like Lakshmi Vilas Bank to evaluate
its business and performance to its competitors. Lakshmi Vilas Bank is a well-known name in
19
the
banking and financial services industry.
 The following are the strengths identified in Lakshmi Vilas Bank's SWOT Analysis;
1. Concentrate on high-quality financial products

Strength 2. Social inclusion through cross-sectoral initiatives

3. A multifaceted approach to asset management4. Provides work for over 1600
persons

In the Lakshmi Vilas Bank SWOT Analysis, the following are the weaknesses:
1. It has a moderate presence in India, as it is primarily found in the south.
Weakness 2. 2. A lack of marketing results in a lack of visibility.

The opportunities in Lakshmi Vilas Bank's SWOT Analysis are as follows:

1. SME banking in the near future

Opportunities 2. Banking on the international stage

3. Retail banking, corporate banking, and bank assurance are the three main areas of
focus.

The following are the threats identified in Lakshmi Vilas Bank's SWOT Analysis:
1. The economic downturn
Threat
2. Extremely competitive market
3. Banking Regulations that are Strict

20
 FINANCIAL POSITION
Due to a "severe deterioration" in the company's financial status, the Reserve Bank of India
issued a month-long ban on Lakshmi Vilas Bank on November 17, 2020. [8] The Reserve Bank
of India issued a notification declaring that Lakshmi Vilas Bank's financial status is insufficient
to pay out its depositors and announcing a month moratorium during which depositors will be
able to withdraw a limited amount of money. Lakshmi Vilas Bank Ltd.'s financial status has been
steadily deteriorating, with the bank experiencing losses over the last three years, eroding its net
worth. The losses are projected to persist due to the lack of a clear strategic plan, diminishing
advances, and growing non-performing assets (NPAs), according to the RBI. On the same day,
the RBI unveiled a proposed merger between LVB and DBS Bank India Limited, which would
result in a write-off of LVB's paid-up share capital and its delisting from all stock markets. From
November 27, 2020, the ban was lifted, and all LVB branches became DBS Bank India
branches. In addition, the RBI requested that the bank write down 316.80 crores in Tier-II
bonds.

The Lakshmi Vilas Bank Ltd. placed under Moratorium

Incorporated in 1926.The Lakshmi Vilas Bank Ltd.'s (the bank's) financial status has been
steadily deteriorating, with the bank sustaining constant losses over the last three years, eroding
its net value. The losses are projected to continue in the absence of a credible business plan,
diminishing advances, and growing non-performing assets (NPAs). The bank has been unable to
raise sufficient capital in order to resolve its negative net worth and ongoing losses. Furthermore,
the bank is dealing with a steady withdrawal of deposits and inadequate liquidity. In recent years,
it has also faced major governance concerns and procedures, which has resulted in a decline in
its performance. In September 2019, the bank was placed under the Prompt Corrective Action
(PCA) framework due to a breach of PCA requirements as of March 31, 2019.
The Reserve Bank had been in constant contact with the bank's management, looking for ways to
supplement capital funds in order to meet capital adequacy requirements. The Reserve Bank was
informed by the bank's management that it was in talks with a number of investors. However, it
failed to make any specific proposals to the Reserve Bank, and the bank's efforts to boost its
capital by merging with a non-banking financial company (NBFC) appear to have come to a halt.
As a result, the bank-led initiatives to use market processes have not yielded results. Because
bank-led and market-led revival efforts are preferable to regulatory resolution, the Reserve Bank
made every effort to assist such a process and provided many opportunities for the bank's
management to develop a credible revival plan or amalgamation scheme, which never
21
materialized. Meanwhile, the bank was experiencing regular liquidity outflows.
After considering these developments, the Reserve Bank has concluded that, in the absence of a
credible revival plan, there is no alternative but to apply to the Central Government for a
moratorium under section 45 of the Banking Regulation Act, 1949, in order to protect depositors'
interests and maintain financial and banking stability. As a result, the Central Government has
placed a thirty-day ban, commencing today, after reviewing the Reserve Bank's request.
The Reserve Bank guarantees the bank's depositors that their funds will be adequately protected,
and that there is no need to be concerned. The Reserve Bank has devised a scheme for the bank's
merger with another banking firm in accordance with the provisions of the Banking Regulation
Act. The Reserve Bank will work hard to put the Scheme in place as soon as the Central
Government approves it. before the moratorium's expiration date, ensuring that depositors are
not subjected to excessive hardship or inconvenience for any longer than is strictly necessary.
The Reserve Bank has also given the bank certain instructions under section 35 A of the Act,
ibid.

22
 Current Position Of Lakshmi Vilas Bank

India called upon called upon a foreign institution to take over Lakshmi Vilas Bank's assets and
liabilities. That should stoke interest of other global banks

The failure of Lakshmi Vilas Bank is the third large deposit-taking institution to fall in 15
months, and the first since the coronavirus outbreak began. Rather than letting a zombie lender
remain after a half-baked rescue, the central bank wisely decided to put Lakshmi Vilas Bank Ltd.
to rest. Even better, a foreign institution has been enlisted to take over the assets and liabilities.
This should pique the curiosity of other major financial institutions.
The moth-eaten LVB will vanish, with all of its assets wiped out. Only its deposits will be
recorded on the accounts of DBS Group Holdings Ltd.'s India unit, Singapore's largest bank. This
is a far more elegant solution than the Reserve Bank of India's handling of Punjab &
Maharashtra Co-operative Bank Ltd.'s implosion in September, when the bank's loan book was
essentially tied to one bankrupt shantytown developer. The shady lender is attempting to sell
itself, though it's unclear why anyone would touch it with a ten-foot stick. Larger PMC
depositors are still stranded, despite the RBI's directives, more than a year later.
The chaotic bailout of Yes Bank Ltd. in March exemplified the refusal to give a failed institution
a proper burial. Authorities permanently wrote down $1.2 billion of Yes Bank's liabilities without
wiping off the existing equity, the first total loss imposed on Additional Tier 1 bondholders by
any country. They subsequently turned to the government-controlled State Bank of India for
further funding. Yes, formerly a significant corporate lender, was destroyed from within by
fraudulent underwriting by prior management. It may not be known whether it has been rescued
until March 2022. Until then, Covid-19 has served as a useful regulatory shield for delaying the
recognition of stressed assets.
Even before the March lockdown, LVB was battling to stay afloat. The lender's Tier 1 capital
ratio fell to negative 1.83 percent as a result of the disruption, putting it beyond redemption. DBS
obtains 563 branches, 974 ATMs, and a $1.6 billion retail liability franchise by swallowing the
94-year-old lender's assets and liabilities.
After SBM Group of Mauritius, the Singapore bank became the second foreign bank to turn its
India operations into a wholly owned subsidiary. DBS Bank India Ltd., on the other hand, hasn't
really expanded outside of big cities. LVB will assist it in expanding its reach into the more
23
industrialized southern state of Tamil Nadu, which is home to Singapore's ethnic Indian
population. According to Bloomberg Intelligence analyst Diksha Gera, further expansion in the
country could lead to the India subsidiary being listed on the Mumbai stock exchange.
The agreement puts to rest rumours that if the RBI couldn't find a suitable rescuer on its own, it
would resort to the state-owned Punjab National Bank. An uncle-nephew jeweller combo
allegedly duped Punjab National into a $2.1 billion fraudulent loan-guarantee ride is hardly the
kind of operational strength and financial vigour depositors want to see in a white knight. The
RBI's decision to widen the search beyond a "national team" is a positive indicator in this regard.
It demonstrates the regulator's desire for strict control over banking assets. Overseas institutions
will be considered on par (nearly) with domestic institutions if they incorporate locally.
Standard Chartered Plc, Citigroup Inc., and HSBC Holdings Plc all have stronger India
relationships and larger branch networks than DBS. However, the requirement that 25% of new
branches in any given year be in unbanked rural areas did not pique their interest in establishing
local subsidiaries. However, given that DBS is gaining scale in India's capital-starved banking
industry through a merger approved by the regulator, others, including HSBC, may see
comparable chances.
DBS Chief Executive Officer Piyush Gupta has used the balance sheet of the bank's Indian unit
to bring in an extra $336 million in capital, as the British bank needs to reduce its excessive
reliance on the Hong Kong market, which is caught in the middle of a financial cold war
between China and the United States. Noel Quinn, his HSBC equivalent, should take a break
from his cost-cutting plans to consider the chance. Although LVB was a minor private-sector
bank, the Indian government seeks to merge the country's 12 state-owned banks into four. There
could be a prize for being Indian in the M&A world.

24
WHAT IS THE LAKSHMI VILAS BANK (LVB) CRISIS?

The company was founded in 1926 by seven Tamil Nadu residents to meet the financial needs of
small companies in their community. They were granted a banking license in 1958, and by 1970,
the company had established a pan-Indian presence. The bank operates 566 branches and 918
ATMs in 19 states and one union territory across the country.
The banking system in India has experienced substantial disruptions in the last two years.
Following the catastrophe at PMC Bank and the problem at YES Bank, Lakshmi Vilas Bank's
future appears to be in risk as well. LVB was founded in 1926 by a group of merchants led by
VSN Ramalinga Chettiar to assist small enterprises, but it gradually shifted its focus to large
businesses. As a result, it was doomed.

What is happening at Lakshmi Vilas Bank currently?

On October 17, 2020, the Reserve Bank of India seized control of a faltering Lakshmi Vilas
Bank and forced its merger with DBS Bank, Singapore's largest lender. The Reserve Bank of
India (RBI) banned deposit withdrawals from banks at Rs 25,000 per day for a month in
November (till December 17, 2020). After observing the bank struggle to find a partner to help it
achieve required capital buffers, the regulator stepped in. The whole paid-up share capital,
reserves, and surpluses of LVB would be written off under the rescue plan.

What went wrong for LVB?

The bank was established to cater to the financial needs of small businesses. However, LVB
shifted its focus from SMEs to large businesses. It provided a loan worth Rs 794 crore to former
promoters of pharma major Ranbaxy and Fortis Healthcare — Malvinder Singh and Shivinder
Singh — against fixed deposits of Rs 794 crore. This proved to be a major misstep for the lender.
In 2018, Religare Finvest, an arm of Religare Enterprises Limited, sued a Delhi branch of LVB
to redeem fixed deposits worth about Rs 800 crore that the bank invoked to recover loans to the
Singh brothers. After the case was filed, RBI put LVB under prompt corrective action (PCA) in
September 2019 due to which the bank was not able to issue fresh loans or open a new branch
anywhere. The PCA has not been revoked to date. Currently, the case is sub judice and two
employees of the bank have been arrested.

25
What will happen to LVB customers?
While LVB would cease to exist, its deposits will appear on the books of DBS Group Holdings
Ltd.'s India unit. Depositors' and workers' interests shall be safeguarded.

Removal of directors
On September 25, 2020, shareholders of Lakshmi Vilas Bank removed seven directors from the
business in one fell swoop, including temporary MD and CEO S Sundar. According to sources,
the bank's stockholders were dissatisfied with an increase in bad loans, value erosion, and the
bank's grim outlook.
Along with the remaining four senior bank employees, the RBI nominated three members —
Meeta Makhan, Shakti Sinha, and Satish Kumar Kalra — to oversee the bank's daily operations.

How the cash-starved Lakshmi Vilas Bank failed to find a suitor?

The proposed merger between LVB and India Bulls Housing Finance fell through.
LVB has started discussions with India Bulls Housing Finance. The bank, however, was refused
RBI approval for the merger barely one month after being placed under the PCA framework. The
bank had no choice except to seek capital from a different source.
Clix Capital and Lakshmi Vilas Bank Merger LVB announced that it was in talks with Clix
Capital. Clix Capital, according to media reports, indicated that LVB's upheaval had put the
purchase in peril.
The RBI compelled LVB to merge with the local arm of Singapore's largest lender, DBS Bank, on
October 17, 2020.

26
Small shareholders of Laxmi Vilas Bank in trouble due to negligent attitude of
RBI

There are 98,000 shareholders in the bank. Out of them, there are 96,380 small shareholders who
own stake worth less than Rs 2 lakh in the bank
Published: 21 Nov 2020, 5:32 PM By Kumund Das

Shareholders of Laxmi Vilas Bank (LVB), on which a moratorium was imposed by RBI on
Tuesday, are likely to be shown the door. Even as the new promoter, DBS Bank, has made an
announcement of infusing Rs 2500 crore in the merged entity, nobody is talking of what will
happen to the huge money put by these small shareholders.
RBI has placed the private sector lender under moratorium for 30 days and proposes to merge the
bank with DBS Bank. Moreover, the regulator has capped deposit withdrawals by customers to
Rs 25,000.
There was no swap arrangement for Global Trust Bank (GTB) shareholders when the private
sector bank was amalgamated with the state-run lender Oriental Bank of Commerce (OBC) in
2004.
The RBC issued a Moratorium Order on 24 July 2004. Before GTB's winding up, Goldman
Sachs owned 4% of the bank and the IFC owned 5%. OBC acquired GTB on 14 August 2004.
Shareholders in GTB received nothing for their shares; depositors, however, suffered no loss.
Even though RBI was fully aware of the problems brewing up in the bank, it kept mum over the
entire issue. And now came its statement that there is nothing for the shareholders to get out of
the merger process. There are 98000 shareholders in the bank. Out of them, there are 96,380
small shareholders who own stake worth less than Rs 2 lakh in the bank. These shareholders hold
8.07 crore shares in the bank with them.
According to the banking regulator, the private sector lender has seen a steady decline in its
financials, incurring losses over the last three years.
“In absence of any viable strategic plan, declining advances and mounting non-performing assets
(NPAs), the losses are expected to continue. The bank has not been able to raise adequate capital
to address issues around its negative net-worth and continuing losses,” an RBI statement said.

27
28
 Lakshmi Vilas Bank Ltd. Company
Last 5 Years Financial Ratios Analysis

29
30
Balance Sheet of the year ,2018, 2017, 2016, 2015, 2014

31
32
 Amalgamation of Lakshmi Vilas Bank with DBS Bank India

30 November 2020, India - DBS Bank India Limited (DBIL), a wholly owned subsidiary of DBS
Group Holdings Ltd, has merged with Lakshmi Vilas Bank (LVB). The scheme of merger was
implemented on November 27, 2020, under the special powers of the Government of India and
the Reserve Bank of India under Section 45 of the Banking Regulation Act, 1949, a period of
uncertainty, the merger gives stability and better prospects for LVB's depositors, customers, and
workers. LVB's moratorium was removed on November 27, 2020, and banking services were
promptly resumed, with all branches, digital channels, and ATMs operating normally. Customers
of LVB can continue to use all of their banking services. Until further notice, the interest rates on
savings bank accounts and fixed deposits are governed by the rates offered by the former LVB.
All LVB workers will be retained in their positions and will now work for DBIL on the same
terms and conditions as before
.Over the following months, the DBS team will work closely with LVB colleagues to integrate
LVB's systems and network into DBS. Customers will be able to access a greater selection of
goods and services once the integration is complete, including the full suite of DBS digital
banking services, which have received numerous international awards.
DBS Bank India Limited (DBIL) is well-capitalized, and even after the merger, its capital
adequacy ratios (CAR) would stay above regulatory norms. DBS Group would also invest INR
2,500 crore (SGD 463 million) in DBIL to help with the merger and future expansion. DBS
Group's existing resources will be used to fully fund this.
DBS has had a presence in India since 1994, and in March 2019, it turned its India business to a
wholly owned subsidiary (DBIL). Forbes has selected DBS to its list of the World's Best Banks
for 2020. DBS was voted first in India out of 29 domestic and international banks in a global poll
of 40,000 banking clients. DBS has also been named the "Safest Bank in Asia" by Global
Finance, a renowned financial newspaper based in New York, for the past twelve years, from
2009 to 2020.
"The merging of LVB has helped us to provide stability to LVB's depositors and workers," stated
Surojit Shome, CEO of DBS Bank India Limited. It also allows us to reach out to a broader
range of clients and cities in which we do not already have a presence. We are excited to
collaborate with our new colleagues in order to be a solid banking partner to LVB's clients."

33
 Following are the key highlights of the merger

On Wednesday, the Union Cabinet authorised the merger of capital-strapped Lakshmi Vilas Bank
(LVB) with DBS Bank India,
the Indian affiliate of Singapore-based DBS Bank.As part of the merger, DBIL will inject Rs
2,500 crore in new capital into the cash-strapped LVB.
The whole paid-up share capital of LVB will be wiped off after the merger, according to the
draught scheme of amalgamation.
The merger of LVB and DBS Bank India will take effect on November 27, 2020.
"With the merger, there would be no longer restrictions on depositors regarding the withdrawal
of their deposit," stated Union Minister Prakash Javadekar.
"The liability will be corrected, and those who have made mistakes will be penalised, and there
will be an overall improvement in oversight," Mr. Javadekar explained.
The government had previously decided to put LVB on hold until December 16, 2020.
After the central bank enabled foreign banks to set up wholly-owned subsidiaries in 2014, DBS
was the first foreign bank to get a banking license.
In September 2019, the RBI placed LVB under Prompt Corrective Action due to the incident.
Due to an increase in bad loans and provisions, LVB's net loss increased to Rs 397 crore in the
second quarter ended September 2020.
On September 25, the bank's shareholders voted out seven members of the board of directors,
including then-MD and CEO S Sundar.
LVB is the second private sector bank to face difficulties this year, following Yes Bank.

34
The disgruntled shareholders of the bank are now in a mood to challenge the regulator's move to
wipe out their equity in the merger plan with DBS Bank India. In their objections to the Reserve
Bank of India (RBI), shareholders will demand fair valuation and a stake in the new merged
entity.
All of the bank's equity, including the shareholding of Indiabulls Housing Finance NSE (4.99%),
Srei Infrastructure Finance (3.34%), Capri Global (3.82%) and promoter ownership of 6.8%, as
well as stakes held by retail investors, are set to be extinguished as the draft scheme of
amalgamation says that the entire paid-up capital of the bank will be written off.
"The proposed amalgamation will provide stability and better prospects to Lakshmi Vilas Bank's
depositors, customers and employees following a time of uncertainty. At the same time, the
proposed amalgamation will allow DBL NSE 0.62 % to scale its customer base and network,
particularly in South India, which has longstanding and close business ties with Singapore," DBS
said in a statement.
Similar is the case in the matter of PMC Bank too. RBI was yet to come up with its plan what to
do with the cooperative bank which has got concerns of thousands of shareholders.
All India Bank Employees Association (AIBEA) has been raising a demand to merge LVB with a
public sector bank, which was completely ignored by the banking regulator.
According to CH Venkatachalam, general secretary, All India Bank Employees’ Association
(AIBEA), “to merge LVB with a public sector bank for the past three years and more, the Tamil
Nadu based private sector Lakshmi Vilas Bank has not been in good health, rather, it was
suffering from bad health and continuous loss.”
The reason is well known to all including RBI.
The then management of the bank had indulged in a lot of bad loans of more than Rs 2000 crores
to borrowers like Religare, Jet Airways, Cox and Kings, Nirav Modi group, Coffee Day, Reliance
Housing Finance, etc. All these undesirable loans were known to RBI as it had its nominee as
Director on the Board of the Bank.
Unfortunately, a very long rope has been given to the bank and now, the RBI has announced
moratorium, he added.

35
 About DBS Bank

DBS Bank Ltd (DBS) is a Singaporean multinational banking and financial services business
with its headquarters in Marina Bay. The Development Bank of Singapore Limited was the
company's previous name before its current name was adopted on July 21, 2003, to represent the
company's evolving role as a global bank.
On July 16, 1968, the Singapore government established the bank to take over the Industrial
Development Board's industrial lending functions. More than 100 of its branches can now be
located all around the island. With total assets of S$518 billion as of December 31, 2017, DBS
Bank is the largest bank in Southeast Asia by assets and among the largest banks in Asia. In
Singapore, Hong Kong, and Taiwan, it holds market-leading positions in consumer banking,
treasury and markets, asset management, securities brokerage, and equity and debt fund-raising.
Temasek Holdings, Singapore's second-biggest sovereign wealth fund, is DBS Bank's largest and
controlling stakeholder (after GIC). Temasek owns 29 percent of DBS shares as of March 31,
2018.
From 2009 to 2015, the bank was named Global Finance’s
"Safest Bank in Asia" for six years in a row, thanks to its excellent
capital position and "AA" and "Aa1" credit ratings from
Standard & Poor's and Moody's, which are among the highes
t in the Asia-Pacific area. Euromoney named the Bank the Best
Digital Bank in the World for the year 2016. DBS became the
first bank in the world to hold three of the most prestigious
global best bank awards at the same time in July 2019.
(Euromoney, Global Finance, The Banker). DBS Bank is also the
first bank in Southeast Asia to be listed on the Dow Jones
Sustainability Asia Pacific Index, which it joined on
October 2, 2018. DBS, along with City Developments Limited,
was one of the first firms in Singapore to be recognised for gender
equality efforts in the first Bloomberg Gender-Equality Index (GEI) published in 2018. The
bank operates in 17 markets and has a regional network of over 250 branches and 1,100 ATMs
spread over 50 cities.

36
 History of DBS Bank

DBS Bank is also the first bank in Southeast Asia to be listed on the Dow Jones Sustainability
Asia Pacific Index, which it joined on October 2, 2018. DBS, along with City Developments
Limited, was one of the first firms in Singapore to be recognised for gender equality efforts in
the first Bloomberg Gender-Equality Index (GEI) published in 2018. The bank operates in 17
markets and has a regional network of over 250 branches and 1,100 ATMs spread over 50 cities.
Proposal for development Bank:
A proposal for a development bank is presented.The idea for a Singapore development bank was
initially discussed in the report of the United Nations (UN) Industrial Survey Mission to
Singapore, which was led by Dutch economist Albert Winsemius. The United Nations team that
visited Singapore in 1960 and 1961 to assess and review the country's industrialization efforts 3
advocated the establishment of an economic organization to oversee the country's
industrialization activities. This organization would not only strive to attract foreign investment
to Singapore, but also to provide industrial financing and industrial estate management. The
mission proposed that the economic body's financing responsibilities be shifted to a development
bank in the future.
The EDB was established on August 1, 1961, by the Singapore government to lead the country's
industrialization drive. As the country's industrialisation efforts proceeded, the EDB's scope of
activities grew in lockstep: from S$7.4 million in 1962 to S$73.9 million in 1967, the statutory
board's overall industrial financing commitments had nearly tenfolded.
In April 1968, then-Minister of Finance Goh Keng Swee announced the government's intention
to establish a development bank with public equity participation in order to provide funding for
Singapore's industrialization initiative. The bank would be formed as a public limited company
under the Firms Act, with shares available to the general public, banks, and other private
companies.

Establishment:
The DBS was formally established on July 16, 1968, and commenced operations on September
1, 1968. Its major purpose was to provide loans to manufacturing and processing companies in
order to help them start new businesses or upgrade existing ones.

37
The bank also backed development projects like urban redevelopment and tourism initiatives. In
addition, on June 16, 1969, the bank launched commercial banking activities.
The DBS took over the review of all loan applications and equity participation proposals from
the EDB on September 1, 1968. After the Economic Development Board (Transfer of Assets)
Bill was passed in parliament in December of that year, the latter's loan portfolio, worth S$44.6
million12, was transferred to the DBS.

Organisation
The new bank's initial staffing was made up of former EDB employees from several areas. Hon
Sui Sen, who was the chairman of the EDB until December 196814, was named the DBS's first
president and chairman. On the bank's first board of directors, he was one of 12 members, six of
whom were representatives of banks and other financial institutions with stock in the company.
In the early years of DBS, German credit bank Kreditanstalt für Wiederaufbau (KfW) gave
technical help to the bank at the request of the Singapore government in operational and
organisational problems.

Share Ownership:
The DBS was the first financial institution in Singapore to allow the private sector to fully
engage in the financing of manufacturing and other industrial ventures. With a S$100 million
start-up capital, share ownership in the first year of operations included the following: The
Singapore government contributed S$48.6 million, commercial banks contributed S$25.9
million, insurance firms and other financial institutions contributed S$7.6 million, while other
enterprises and members of the public contributed S$17.9 million.
The DBS's development finance activities grew quickly after a successful share subscription
exercise. By the end of 1969, it had made financial commitments to 96 enterprises totaling
S$264.6 million.

External Credit Lines

The DBS sought external lines of credit to expand its financial resources in order to fulfil the
increased demand for industrial capital. In 1969, the Asian Development Bank authorised a
credit of S$30 million, followed by a S$15 million loan from the World Bank in 1970, and a S$8
million loan from KfW in 1971.
38
Major Development Project:
Within the first year of its operations, the DBS established DBS Realty, a wholly owned
company that managed real estate developments. The DBS Building on Shenton Way, which
began building in August 1969, was one of the bank's first significant development initiatives.
This office-and-shopping complex, which cost S$36.6 million to build, consists of a pedestal
block and three superstructures. The tallest of these was a 50-story skyscraper that planned to be
DBS's new headquarters and was the highest in Singapore at the time. Prior to the erection of the
DBS Building, the bank was housed in the ICB Building, which was also on Shenton Way.
Plaza Singapura (1975), Pandan Valley condominium (1978)24, and Raffles City are some of the
DBS's other noteworthy real estate ventures (1986).

Expansion and Growth:

The DBS issued its first Asian dollar bond, valued at US$10 million, in December 1971. It was
the first financial organization in Singapore to do so, paving the way for Singapore to become an
international financial centre. The bank launched its first branch in Singapore a year later. The
branch, which was located in Jurong, Singapore's first industrial area, offered a full range of
financial services to the general public. With the launch of a branch in Tokyo, Japan, in April
1977, the DBS made its first entry into the international banking arena. By 1994, its real estate
subsidiary had acquired assets in hotels across the world, including the Galle Face Hotel in Sri
Lanka.
DBS was a main shareholder in the Islamic Bank of Asia when it was established in May 2007.

Aquisition of POSB Bank:

The British Colonial Government in Singapore created the Post Office Savings Bank on 1
January 1877 in the General Post Office Building in Raffles Place.
POSB had one million depositors by 1976, and deposits had surpassed S$1 billion. In 1990, the
bank was renamed POSBank before being purchased by DBS Bank for S$1.6 billion (originally
announced on 24 July 1998), giving it a dominant market share of almost four million customers.
POSB Bank continues to have the most bank branches in Singapore, particularly in suburban
areas, as well as the most ATMs. Customers of both banks can now use the same facilities; DBS
Bank depositors can use the Cash Deposit Machines installed islandwide at POSBank branches,
and POSB Bank depositors can do the same.
39
Logo and Renaming:
In 1972, DBS debuted its distinctive logo. The symbol consisted of a cluster of four inward-
pointing red arrows shaped like the caissons of the DBS Building, set against a white
background.The Development Bank of Singapore Ltd was renamed DBS Bank Ltd in 2003,
more than three decades after its founding, to better reflect its "pan-Asian goals." Its Chinese
name was likewise altered from (Xinjiapo fazhan yinhang) to (Xinjiapo fazhan yinhang)
(Xingzhan yinhang).

Revenue of DBS Bank:

US$10.28 billion was the revenue of the year 2016.

Operating was SGD6.517 billion of the year 2016 and SGD6.037 billion of the year 2015
Net income of the year 2016 was US$3.07 billion
Total aassests as per 2016 US$333.48 billion

Product and Services:

Financial Services: Financial services are economic services offered by the finance industry,
which includes credit unions, banks, credit-card companies, insurance companies, accountancy
firms, consumer-finance firms, stock brokerages, investment funds, individual managers, and
some government-sponsored organisations.

Retail banking: It is also known as consumer banking or personal banking, is when a bank
provides services to the general public rather than businesses, corporations, or other banks,
which is referred to as wholesale banking. Savings and transactional accounts, mortgages,
personal loans, debit cards, and credit cards are all examples of retail banking services.
Investment banking and commercial banking are distinct from retail banking. It can also refer to
a bank's specific customer service division or department.
❑ Typical banking services offered by retail banks include:
• Transactional accounts
• Checking accounts (American English)
• Current accounts (British English)
• Savings accounts

40
• Debit cards
• ATM cards
• Credit cards
• Traveler's cheques
• Mortgages
• Home equity loans
• Personal loans
• Certificates of deposit/Term deposits

Corporate Banking: Mortgage brokers, large corporate clients, mid-sized companies, real estate
developers and investors, international trade finance businesses, institutional customers (such as
pension funds and government entities/agencies), and services offered to other banks or financial
institutions are all examples of wholesale banking. Wholesale finance refers to financial services
provided by banks, insurers, fund managers, and stockbrokers to other financial services
organizations and institutions.

The following activities are carried out by modern wholesale banks:

• Finance wholesaling
• Underwriting
• Market making
• Consultancy
• Mergers and acquisitions
• Fund management

Investment Banking: : A financial services organization or corporate division that participates in

advisory-based financial transactions on behalf of people, companies, and governments is known
as an investment bank. Traditionally connected with corporate finance, a bank like this might
help a customer raise money by underwriting or serving as the client's agent in the issue of
securities. An investment bank may also provide ancillary services such as market making,
derivatives and equity securities trading, and FICC services to corporations involved in mergers
and acquisitions (M&A) (fixed income instruments, currencies, and commodities). In addition to
their investment research businesses, most investment banks also include prime brokerage and
asset management sections.
41
The Bulge Bracket (highest tier), Middle Market (mid-level enterprises), and Boutique Market
are the three types of businesses that make up the industry (specialized businesses).
Investment banks do not accept deposits, unlike commercial and retail banks. The United States
maintained a division between investment banking and commercial banking from the
introduction of the Glass–Steagall Act in 1933 until its repeal by the Gramm–Leach–Bliley Act
in 1999. Other industrialised countries, including the G7, have not kept such a distinction in the
past. The Volcker Rule establishes some institutional separation of investment banking services
from commercial banking as part of the Dodd–Frank Wall Street Reform and Consumer
Protection Act of 2010 (Dodd–Frank Act of 2010).
All investment banking activity falls into one of two categories: "sell side" or "purchase side."
The "sell side" entails trading securities for cash or other securities (e.g., facilitating transactions,
market-making), as well as securities promotion (e.g. underwriting, research, etc.). The "buy
side" entails advising institutions that purchase investing services. The most frequent types of
buy-side businesses include private equity funds, mutual funds, life insurance companies, unit
trusts, and hedge funds.
An investment bank can also be divided into private and public activities, with a screen between
the two to prevent data from being shared. The bank's private portions deal with confidential
insider information that isn't publicly available, while the public areas, such as stock research,
deal with publicly available information. In order to provide investment banking services in the
United States, an advisor must be a registered broker-dealer and be regulated by the Securities
and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).

Mortgage Loan: A mortgage loan, or simply mortgage, is a loan used by real estate buyers to
raise cash to purchase real estate, or by current property owners to borrow finances for any
reason while putting a lien on the property being mortgaged. Mortgage origination is the
procedure by which the loan is "secured" on the borrower's property. This means that if the
borrower defaults on the loan or otherwise fails to comply with its conditions, a legal process is
put in place that permits the lender to take ownership of and sell the secured property
("foreclosure" or "repossession") to pay off the loan. The term "mortgage" comes from a Law
French term that meant "death pledge" in the Middle Ages and refers to the pledge ceasing
(dying) when the obligation is satisfied or the property is removed through foreclosure. "A
borrower giving consideration in the form of a collateral for a benefit (loan)" is another way to
characterise a mortgage.
42
The term "mortgage" comes from a Law French term that meant "death pledge" in the Middle Ages
and refers to the pledge ceasing (dying) when the obligation is satisfied or the property is removed
through foreclosure. "A borrower giving consideration in the form of a collateral for a benefit
(loan)" is another way to characterize a mortgage.
Individuals who are mortgaging their homes or firms who are mortgaging commercial property are
both examples of mortgage borrowers (for example, their own business premises, residential
property let to tenants, or an investment portfolio). Depending on the country, the lender will most
likely be a financial institution such as a bank, credit union, or building society, and the loan
arrangements can be made directly or indirectly through intermediaries. The size of the loan, the
loan's term, the interest rate, the manner of repayment, and other parameters of mortgage loans can
all vary significantly. The lender's rights over the secured property take precedence over the
borrower's other creditors, which means that if the borrower goes bankrupt or insolvent, the other
creditors will only be reimbursed their debts owed to them if the mortgage lender is paid in full
first.

Private Banking: Private banking refers to banking, investment, and other financial services given
by banks and financial institutions primarily to high-net-worth individuals (HNWIs), who are
described as having a lot of money or a lot of assets. Private banking is a more specialized type of
wealth management that caters to the ultra-wealthy. The phrase "private" refers to customer service
that is more personalized than that provided by mass-market retail banks, and is usually provided
by dedicated bank advisers. It mainly consisted of banking services (deposit taking and payments),
discretionary asset management, brokerage, limited tax advising services, and some basic
concierge-type services, all of which were provided by a single authorized relationship manager
until recently.

Wealth Management: Individuals and families ranging from affluent to high-net-worth (HNW) and
ultra-high-net-worth (UHNW) individuals and families are served by wealth management (WM) or
wealth management advice (WMA). It is a discipline that entails organizing and arranging money
in order to aid in the growth, preservation, and protection of wealth while passing it on to the
family in a tax-efficient and wishes-based manner. Tax planning, wealth protection, estate planning,
succession planning, and family governance are all part of wealth management.

43
Credit Card: A payment card that is issued to users (cardholders) to allow them to pay a
merchant for products and services based on their existing debt (i.e., promise to the card issuer to
pay them for the amounts plus the other agreed charges). The card issuer (typically a bank or
credit union) opens a revolving account for the cardholder and extends a line of credit from
which the cardholder can borrow money for merchant payments or cash advances.
Consumer credit cards and business credit cards are the two types of credit cards available. The
majority of the cards are plastic, however there are a few metal cards (stainless steel, gold,
palladium, and titanium) as well as a few gemstone-encrusted metal cards.
A regular credit card differs from a charge card in that the balance on a charge card must be paid
in full each month or at the end of each statement cycle. [4] Credit cards, on the other hand,
allow users to accumulate an ongoing debt load that is susceptible to interest charges. A credit
card differs from a charge card in that the former often involves a third-party business that pays
the seller and is reimbursed by the latter, whilst the latter simply defers payment by the buyer
until a later date.
A credit card is also distinct from a debit card, which can be used as cash by the cardholder

44
 Research Methodology.

The research of this topic is done by collecting primary as well as secondary data. The primary
data of this research is done by circulating google forms. The primary data is collected by 82
respondents. The method used for this research is Random Sampling Method. The secondary
data of this research project is collected by browsing the internet. The secondary data is also
collected through some textbooks. Due to limited amount of time and covid restriction the
researcher could only collect data from the surrounding areas

IMPORTANCE OF THE RESEARCH:

The importance of doing research in this topic:
By researching in this topic the researcher came to know about the financial statements of
Lakshmi Vilas Bank. And also came to know about the various types of services which are
provided by bank. By researching about this topic it helped in knowing about the customers
suggestions. It also helped in knowing whether the customers are happy / satisfied by the
services which is provided by the bank.

OBJECTIVE OF THE RESEARCH:

To analyse how many people have Bank Accounts.
To find out whether the customers were aware of the online services provided by the bank
To find out how long do customer have account with the bank.
To evaluate which bank do they prefer for online banking.
To find out whether the baking transaction is safe to handle.
To analyse whether the customers are using all the services provided by their bank
To evaluate whether the customers are satisfied by the services provided by their banks.

45
 LITERATURE REVIEW

A literature review is a summary of previously published works on a particular subject. A entire

scholarly paper or a portion of a scholarly work such as a book or an article might be referred to
by the word. In either case, the goal of a literature review is to give the researcher/author and the
audience a broad picture of what is known about the subject at hand. A thorough literature
evaluation helps guarantee that a legitimate research topic has been posed and that the
appropriate theoretical framework and/or research methodology has been selected. A literature
review, to be precise, aims to place the current work within the context of the relevant literature
and to give the reader context. In such cases, the review normally comes before the work's
methods and outcomes sections.
A literature review is a common aspect of graduate and post-graduate student work, such as
when writing a thesis, dissertation, or journal article. In a research proposal or prospectus,
literature reviews are also typical (the document that is approved before a student formally
begins a dissertation or thesis).
A review article can include a literature review. In this sense, a literature review is a scientific
work that summarises current knowledge on a certain issue, including substantive discoveries as
well as theoretical and methodological contributions. Literature reviews are secondary sources
that do not report on fresh or experimental research. Such reviews are most commonly connected
with academic-oriented literature and can be found in academic journals. They should not be
confused with book reviews, which can also be found in the same magazine. In practically every
academic discipline, literature evaluations serve as a foundation for study.

Researcher Name: Rajendran, M

Year: 14th October 2016.
Topic: A study of human resource administration in the Lakshmi Vilas Bank
Keywords: Human Resource, Organisational Climate, Banks, Ingratiation, Banking

Suggestions Based on the findings of the study, the following suggestions are made in the
functional areas of Human Resource Management, viz., Recruitment and Selection, Training and
Development, Job Satisfaction and Employer Relations with a view to improve the effectiveness
of Human Resource Management practices in the Lakshmi Vilas Bank, particularly in those areas
46
where inadequacies are found in the investigation
Researcher Name: Vanitha G
Year: 20th August 2014.
Topic: A study on financial statement analysis of Lakshmi villas bank LTD
Keywords: Commerce A study on financial statement analyis of Lakshmi vilas bank LTD

Review: The researcher had concluded that, Financial statement analysis is only the tool, which
helps to understand the financial and operational performance of the business concern, and this
information are essential to take decision in business concern. But sometimes this analysis
provides only information, which is not exact, or accurate. Business concern's profitable and
financial performances are highly influenced by some factors such as internal and external.
Financial Statement Analysis is one of the factors, which provides fast information. But in real
business experience, we can give suggestions to improve the performance of business concern
but not able to provide any concrete or solutions to the business concern; because the possibility
of changes and other factors are highly responsible for judging the financial and operational
efficiency and performance of the business concern; particularly in banking industries.

Researcher Name: Ramachentrayar, P

Year: 10th January 2017.
Topic: Operational efficiency of Lakshmi Vilas bank ltd
Keywords: Efficiency Lakshmi Vilas Bank Operational

Conclusion: The operational efficiency of the LVB has been analysed and found that the
financial position is good. Further, the bank should maintain the increasing trend of market value
of equity to increase its financial solvency position. Regarding the employees’ productivity, the
LVB Ltd has achieved a good position during the period under study. Growth rate of deposit
mobilization and advances shows that the LVB is functioning effectively.

47
Researcher Name: Deepa P
Year: 17th October 2018.
Topic: A comparative study of capital structure and profitability of karur vysya bank
limited and Lakshmi Vilas bank limited
Keywords: Capital and Profit KVB and LVB

Conclusion: A study of capital structure is very much needed in the present competitive
globalised economic environment. Proper analysis of capital structure and financial performance
helps the firms to increase their earning capacity, change the retained earnings process and
modify various turnover ratios. This study is carried out for analyzing structural and financial
performance of Karur Vysya Bank Limited (KVB) and The Lakshmi Vilas Bank Limited (LVB),
which are engaged in banking industry. Good consistency and stability are noticed in the
functioning of these two study units and if trade cycles are handled well, management of these
banks will grow to the highest levels within a very short span of time. Further, an indepth
analysis and hypotheses results of the study also indicate that there is no significant difference in
capital structure aspects of KVB and LVB during the study period, which shows that both the
firms are identical in terms of capital structure and financial performance aspects in general.
Since both the banks are private and for every of their development is highly rely on their own if
they adopt this capital structure. On the other hand, if they changed their attitude towards
borrowers‟ funds contribution in their capital structure with a view to enjoy the real leverage
benefit taste, so that they can expand their activity more extensively and they can give hectic
competition to giant private banks, nationalized banks and foreign banks 269 operating in India.
Hence, it is concluded that, in order to tackle the national competition and global challenges
without much strain in the future, the present financial management policies are to be reviewed

48
 DATA ANALYSIS, INTERPRETATION AND PRESENTATION.

The researcher have done a survey with help of google forms to calculate how
many people are aware of the services which are provided by the bank and
customer satisfaction. This data is collected on the basis of responses which is
given by the people.

Under the data analysis and interpretation, made by the data which is collected
from the general public to see whether the general public are aware of the facility
or not. Whatever data is collected by the survey are presented in the tabular or chart
form with the help of proper diagram & with the help of Google applications.

There total of 16 charts which are created with the help of the data which is
provided by the respondents. The explanation about the charts are explained below

49
CHART 01;

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR AGE

SR. NO CATEGORY NOS. OF PERCENTAGE %

RESPONDENT
1 BELOW 18 1 1.4

2 18 TO 30 59 79.7

3 30 AND ABOVE 14 18.9

TOTAL 74 100

THE ABOVE CHART INDICATES IN WHICH AGE GROUP THE RESPONDENT

BELONGS:
As the above chart shows that majority of the respondents belong to the age group of 18 to 30 is
79.7%.
As the age group play a vital role to make any type of research successful

50
CHART 02;

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF THEIR

GENDER

SR. NO CATEGORY NOS. OF PERCENTAGE

RESPONDENT
1 MALE 31 41.9

2 FEMALE 42 56.8

3 OTHERS 1 1.4

TOTAL 74 100

THE ABOVE CHART INDICATES THE GENDER OF THE RESPONDENTS:

As for the researcher the gender plays a very important role because the researcher gets a proper
knowledge about which specific gender has chooses LVB or DCB Bank. The above chart shows
how many male, female or others respondents have filled this form .The above chart shows that
the majority of the people are female who have filled the customer satisfaction forms. The
female respondent are 56.8% and male respondent are 41.9% who have filled the survey forms

51
 CHART 03;

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF IF THEY HAD

A BANK ACCOUNT WITH LAKSHMI VILAS BANK OR DCB BANK

SR. NO CATEGORY NOS. OF PERCENTAGE%

RESPONDENT
1 YES 53 71.6

2 NO 21 28.4

TOTAL 74 100

THE ABOVE CHAT INDICATES THAT IF THE RESPONDENT HAD A BANK

ACCOUNT IN LAKSHMI VILAS BANK OR HAVE A BANK ACCOUNT IN DCB
BANK;
As some of the people in India are not educated that’s why they prefer to keep their money at
home instead of keeping it to the banks.
The bank employees should spread awareness among the people and they should motivate them
to open a bank account. The banks can give the customers several benefits or discount which will
attract the customers by which they will open an account in DCB BANK
As per the above chat 71.6% of the respondent has the bank account in the following bank
52
CHART 04;

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF WHAT KIND

OF ACCOUNT DO YOU MAINTAIN IN THIS BANK

SR. NO CATEGORY NOS. OF PERCENTAGE

RESPONDENT
1 SAVING ACCOUNT 57 77

2 FIXED DEPOSIT ACCOUNT 4 5.6

3 CURRENT ACCOUNT 6 7.9

4 OTHERS 7 9.5

TOTAL 74 100

THE ABOVE CHART INDICATES THAT WHAT KIND OF ACCOUNT THEY

MAINTAIN IN THIS BANK;
Nowadays banks are offering many types of accounts so that the customers can use all facilities
which is provided by their respective banks.
As the above chart shows, majority people prefer saving account the count is 77% people now
days prefer saving account because it is beneficial to the salary owned people so that they can
save money

53
CHART 05;

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF IF THEY ARE

AWARE OF ONLINE BANKING SERVICES PROVIDED BY THE BANK

SR. NO CATEGORY NOS. OF PERCENTAGE

RESPONDENT
1 YES 56 75.7

2 NO 12 16.2

3 MAYBE 6 8.1

TOTAL 74 100

THE ABOVE CHART INDICATES THAT HOW MANY PEOPLE ARE AWARE
ABOUT THE ONLINE BANKING SERVICE PROVIDED BY THE BANK:
The customers open their bank account because all they want is to get a better services.
Nowadays people are using online banking services more and more due to digitalization process.
Bank have seen that in customer, online banking is very much popular that’s why they have
introduced their own online banking applications to provide better quality of services. As the
above chart shows that the majority of the people are aware of all the online services which is
provided by the bank. On the basis of the survey 75.7% people know about all the services which
is provided by the banks. And 16.2% respondent are not aware, as bank should make awareness
among the people of online banking services provided by the bank
54
CHART 06;

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF IF THEY

VISITED BANK BRANCHES AFTER USING ONLINE BANKING

SR. NO CATEGORY NOS. OF PERCENTAGE

RESPONDENT
1 YES 34 45.9

2 NO 18 24.3

3 SOMETIMES 22 29.7

TOTAL 74 100

THE ABOVE CHART INDICATES IF REPONDANT STILL VISIT THE BANK

BRANCHES AFTER USING ONLINE BANKING;
As the above chat indicates still more of the people prefer to go to the bank as some might still
don’t use online or net banking
Bank should make online baking more easy so it would help people to understand online banking
much better
Still there are few people would choose a branch-only or digital-only model. 55
CHART 07;

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF IF THEY ARE

USING ALL THE SERVICES PROVIDED BY THE BANK

SR. NO CATEGORY NOS. OF PERCENTAGE

RESPONDENT
1 YES 40 54.1

2 NO 34 45.9

TOTAL 74 100

THE ABOVE CHART INDICATES THAT HOW MANY CUTOMERS ARE

USING ALL THE SERIVICES PROVIDED BY BANKS:
The banks are providing their customers with a lot of services but the customers are not aware of
all the services which is provided by the banks like: There are several special banking service for
senior citizens which is available in banks for the senior citizens but the customers are not aware
about them. The bank should spread awareness about the services which they are offering
through the newspaper, TV, online advertisements etc. As shown in the above chart some of the
customers are not using all the services which is provided by the bank. On the basis of the survey
which shows that 45.9% people are not using all the services
56
CHART 08;

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF SINCE HOW

LONG DO YOU HAVE ACCOUNT WITH LVB / DCB BANK

SR. NO CATEGORY NOS. OF PERCENTAGE

RESPONDENT
1 1 YEARS OR LESS 43 58.1

2 2 YEARS 13 17.6

1 3 YEARS 8 10.8

4 4 YEARS 4 5.4

5 MORE THAN 5 YEARS 6 8.1

TOTAL 74 100

THE ABOVE CHART INDICATES FROM HOW MANY YEARS THE

RESPONDENTS ARE A CUSTOMER OF THIS BANK:
People now days prefer to choose a bank which provides a better quality of the product. If the
customer is not satisfied with his / her banking services than he might not continue to operate the
banking transaction from the same bank. As shown in the above document the majority of the
people are been a customer from a 1 years and only 8.1% of the respondent are customers from
more than 5 years 57
CHART 09;

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF ON WHICH

SCALE ARE YOU SATISFIED BY THE SERVICES PROVIDED BY THE
BANK WHERE 5 MEANS SATISFIED

THE ABOVE CHART INDICATES WHETHER THE CUSTOMERS ARE

SATISFIED WITH THE BANKING SERVICE OR NOT:
Customers today have a wide selection of banking services to choose from, so providing superior
customer experiences is critical to retaining and attracting new customers.
As today all the banks need customers so they provide with better quality of the services to
attract them. And people prefer the banks which provide better quality of service. So they will
join that bank only. As shown in the above chart that majority of the customers are not much
satisfied with their banking services which is provided by the bank.
The above chart shows only 39.2% of the respondent is some what satisfied with the baking
services. According to the survey banks should work more for the satisfaction of their customers
services and it should be never ending process

58
CHART 10;

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF WHICH

BANK DO THEY PREFER MOST FOR ONLINE BANKING

SR. NO CATEGORY NOS. OF PERCENTAGE

RESPONDENT
1 SBI 16 21.6

2 ICICI 10 13.5

3 HDFC 12 16.2

4 DCB 19 25.7

5 OTHERS 17 23

TOTAL 100

THE ABOVE CHART INDICATES THAT HOW MANY PEOPLE OPEN

ACCOUNTS IN WHICH BANK:
Now days many banks are available which offers great discount and the premium rate is low
that’s how the banks attract the customers towards their banks. As the above chart shows that
majority of the customers prefer or like online banking of DCB Bank. In above survey 2nd most
bank prefer for online banking is SBI as it is a nationalize bank.
59
CHART 11;

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF WHICH

PAYMENT METHOD DO YOU PREFER TO USE ?

SR. NO CATEGORY NOS. OF PERCENTAGE

RESPONDENT
1 COD (CASH ON 17 23
DELIVERY)
2 DEBIT/ CREDIT CARD 23 31.1
NET BANKING
3 NET BANKING 26 35.1

4 OTHERS 8 10.8

TOTAL 74 100

THE ABOVE CHAT INDICATES WHICH PAYEMENT METHOD DO

RESPONDENT PREFER TO USE;
As the above chat shows most of the people prefer to use net banking,
Today net baking has became so easy one can make payment, bills payment on the tip of the
fingers by sitting at our house by the help of internet connectivity, one can check balance of his/
her account anytime anywhere.
As India is becoming cashless the 2nd most prefer payment is debit/ credit cards.

60
CHART 12;

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF WHICH

BANKING METHOD DO YOU PREFER TO USE

SR. NO CATEGORY NOS. OF PERCENTAGE%

RESPONDENT
1 ONLINE BANKING 58 78.4

2 OFFLINE BANKING 16 21.6

TOTAL 74 100

THE ABOVE CHART INDICATES WHICH BANKING METHODS DO

REPONDENT PREFER:
As of today the online banking as became a need because the people are busy with their life that
they cannot go to banks for a single amount of transaction. So the online banking plays a vital
role in day to day life. But due to lack of knowledge there are some people who are not aware
about the online banking services or they don’t know how to use it.
As shown in the above chart that majority of the people are using the online banking services.
Because it is very fast and secure and easy to use. On the basis of the survey 78.4% people are
using online banking services which are provided by their banks 61
CHART 13;

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF WHICH

ONLINE FEATURES DO YOU USE REGULARLY

SR. NO CATEGORY NOS. OF PERCENTAGE

RESPONDENT
1 PAYING BILLS 25 33.8

2 FOR ACCOOUNT INQUIRY 5 6.7

3 TRANSFER MONEY 37 50

4 OTHER 7 9.5

TOTAL 74 100

THE ABOVE CHAT INDICATES WHICH ONLINE FEATURES DO

RESPONDENT USE REGULARY;
As net banking has become so easy one can transfer money to anyone anytime, according to the
survey, Half of the respondent use online features for transferring money, and 33.8% of
respondent use online features regularly for paying bills. Due to digitalization everything has
become so easy.

62
CHART 14;

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF IS ONLINE

BAKING TRANSACTIONS SAFE TO HANDLE

SR. NO CATEGORY NOS. OF PERCENTAGE

RESPONDENT
1 YES 49 66.2

2 NO 21 28.4

3 MAYBE 4 5.4

TOTAL 74 100

THE ABOVE CHAT INDICATES IS ONLINE BANKING TRANSACTION SAFE

TO HANDLE.
According to the survey 66.2% people thinks online banking transaction is safe to handle.
Whether it is a fund transfer, bill payment or creation of a fixed deposit, internet baking allows
you to do it fast and convenient way. With all the advantages that the world of internet banking
offers, there are certain risks involved, which remain huge concerns for the users, like online
fraudsters, still many people don’t feel online transaction isn’t safe to handle.
Despite concern about identity theft, online baking is safe as other baking transaction. 63
CHART 15;

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF QUALITY OF

SERVICES BY LVB OR DCB BANK

THE ABOVE CHART INDICATES WHETHER THE CUSTOMERS ARE

SATISFIED WITH THE BANKING SERVICE OR NOT:
There is so much competition outside so it is essential to look after if the customer is satisfied
with the quality of services provide by the bank.
As today all the banks need customers so they provide with better quality of the services to
attract them. And people prefer the banks which provide better quality of service.
As shown in the above chart that majority of the customers are not satisfied with their banking
services which is provided by their bank, baking should make more product and services, only
good services leads to customer satisfaction.

64
CHART 16;

CLASSIFICATION OF RESPONDENTS ON THE BASIS OF

RECOMMENDATION OF DCB BANK TO YOUR FAMILY OR FRIENDS

SR. NO CATEGORY NOS. OF PERCENTAGE

RESPONDENT
1 YES 47 63.5

2 NO 21 28.7

3 MAYBE 5 6.8

TOTAL 74 100

THE ABOVE CHART INDICATES RECOMMENDATION OF DCB BANK TO THERE FAMILY

AND FRIENDS;
According to the survey 63.5% of the respondent says they will recommend to open a account in
DCB Bank to there family and friends.
Still there are 29.7% respondent says they will not recommend and 6.8% are still doubtful,
customer service is a vital component of a quality customer, Customer service is an important
part of delivering a positive customer experience since it has a direct impact on how customers
interact with your company. Failures in customer service, such as an unpleasant interaction with
a live support agent or a failure to respond to a client's urgent demand, can quickly tarnish a
customer's perception of your bank and sour the overall customer experience. To that end, it's
critical that you not just seek for ways to improve customer service in banks, but also that you
65 go

above and above.

CONCLUSION:

SUGGESTION:

66
FINDINGS:

67
 Annexure:

Questionnaire.
Questionnaire On Analysis Of Customer Satisfaction Of Lakshmi Vilas Bank
And DCB Bank

Name;

Age
Below 18
118 To 30
30 And Above

Gender
Male
Female
Others

Do You Had A Bank Account In Lakshmi Vilas Bank Or Have A Bank Account In DCB
Bank?
Yes
No

What Kind Of Account Do You Maintain In This Bank?

Saving Account
Fixed Deposit Account
Current Account
Other

Are You Aware Of Online Banking Services Provided By The Bank ?

Yes
No
Maybe
68
Have you visited bank branches after using online banking ?
YES
NO
SOMETIMES

Have you visited bank branches after using online banking ?

YES
NO

Since how long do you have account with LVB / DCB Bank ?
1 YEARS OR LESS
2 YEARS
3 YEARS
4 YEARS
MORE THAN 5 YEARS

On which scale are you satisfied by the services provided by the bank ?
1 TO 5

Which bank do you prefer most for online banking ?

SBI
ICICI
HDFC
DCB
OTHERS

Which payment method do you prefer to use ?

COD (CASH ON DELIVERY)
CREDIT/ DEBIT CARD
NET BNAKING
OTHERS

69
What Do You Prefer ?
ONLINE BANKING
Offline Banking

Which Online Features Do You Use Regularly?

Paying Bills
For Account Enquiry
Transfer Money
Other

Are Online Baking Transactions Safe To Handle?

Yes
No
Maybe

What Do You Feel About The Quality Of Services By LVB or DCB Bank ?
1 To 5

Will You Recommend Your Family Or Friends To Open An Account In Dcb Bank ?
Yes
No
Maybe

Any Suggestions?

70
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Development Bank of Singapore | Infopedia (nlb.gov.sg)

DBS Bank - Wikipedia

https://www.bing.com/newtabredir?url=https%3A%2F%2Feresour
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01_132040.html

Lakshmi Vilas Bank (LVB) Crisis - History, Cause, Mergers | Business

Standard (business-standard.com)

10.pdf (indianresearchjournals.com)

Lakshmi Vilas Bank | ithought's Blog for Finesse RIA

Lakshmi Vilas Bank Shareholding Pattern - The Economic Times

(indiatimes.com)

Lakshmi Vilas Bank Business Loan: Types, Interest Rate, Documents |

Apply Online (paisabazaar.com)

laxmi vilas bank – Bing

71