PROJECT REPORT

ON

“UNIVERSAL BANKING”

IN PARTIAL FULFILLMENT OF

THE DEGREE AWARDED

B.COM (FINANCIAL MARKETING)

SEMESTER VI

UNDER THE GUIDANCE OF

DR. RAKHEE OZA

SUBMITTED TO

UNIVERSITY OF MUMBAI

FOR ACADEMIC YEAR 2020 – 2021

SUBMITTED BY

NAME: ANIVESH KUMAR SINGH

ROLL NO: 45

VIVA COLLEGE OF ARTS, COMMERCE AND SCIENCE

VIRAR (WEST), 401303

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 DECLARATION

I hereby declare that the Project Titled “UNIVERSAL BANKING” is an original

work prepared by me and is being submitted to University of Mumbai in partial
fulfillment of “TYB.Com.(FINANCIAL MARKETING)” degree for the academic
year 2020-2021.

To the best of my knowledge this report has not been submitted earlier to the
University of Mumbai or any other affiliated college for the fulfillment of “B.Com
(FINANCIAL MARKETING)” degree.

Date: 10th March 2021 Name: Anivesh Kumar Singh

Place: Virar Signature:

ii
 ACKNOWLEDGEMENT

I Anivesh Kumar Singh the student of VIVA College pursuing my “B.COM

(FINANCIAL MARKETING)”, would like to pay the credits, for all those who
helped in the making of this project. The first in accomplishment of this project is our
Principal Dr. A. P. Pandey, Vice-Principal Prof. Prajakta Paranjape, Course
Coordinator Dr. Roshani Nagar and Guide Prof. /Dr. Rakhee Oza and teaching
& non teaching staff of VIVA College. I would also like to thank all my college
friends those who influenced my project in order to achieve the desired result
correctly.

iii
 Anivesh Kumar Singh

TYBFM
Universal banking
20 21

Dr. Rakhee Oza

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v
 INDEX

NO. Chapter Name PAGE

NO.
I Project Title i

II Declaration ii

III Acknowledgement iii

IV Certificate iv

V Index v

1 Introduction to Universal Banking 1

2 History Of Universal Banking 5

3 The Concept, Model & Needs of Universal 12

Banking
4 Current Position, Future Trend, 24
Issues & Challenges In Universal Banking
5 Conclusions 40

6 Bibliography 42

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 CHAPTER 1

INTRODUCTION TO UNIVERSAL BANKING

1.1 Introduction:-

Since the early 1990s, structural and functional changes of profound magnitude came
to be witnessed in global banking systems. Large-scale mergers, amalgamations and
acquisitions among banks and financial institutions resulted in the growth in size and
competitive strengths of the merged entities. There thus emerged new financial
conglomerates that could maximize economies of scale and scope by 'bundling' the
production of financial services. This heralded the advent of a new financial service
organization, i.e. Universal Banking, bridging the gap between banking and financial-
service-providing institutions. Universal Banks entertain, in addition to normal
banking functions, other services that are traditionally non-banking in character such
as investment-financing, insurance, mortgage-financing, securitization, etc. Parallel,
in contrast to this phenomenon, non-banking companies too entered upon banking
business. Universal banking usually takes one of the three forms i.e. in-house, through
separately capitalized subsidiaries, or through a holding company structure. Three
well-known countries in which these structures prevail are Sweden and Germany, the
UK and US.

The banking scenario in India has been changing at fast pace from being just the
borrowers and lenders traditionally, the focus has shifted to more differentiated and
customized product/service provider from regulation to liberalization in the year
1991, from planned economy to market.

The Indian banking has come a long way from being a sleepy business institution to a
highly proactive and dynamic entity. This transformation has been largely brought
about by the large dose of liberalization and economic reforms that allowed banks to
explore new business opportunities rather than generating revenues from conventional
streams (i.e. borrowing and lending).

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The competition heated up with the entry of private and foreign banks deregulation
and globalization resulted in increased competition that refined the traditional way of
doing business. They have realized the importance of a customer centric approach,
brand building and IT enabled solutions. Banking today has transformed into a
technology intensive and customer friendly model with a focus on convenience. The
companies have redoubled their efforts to woo the customers and establish themselves
firmly in the market. It is no longer an option for a company to provide good
customer service, it is expected.

Reforms are continuing as part of the overall structural reforms aimed at improving
the productivity and efficiency of the economy. The sector is set to witness the
emergence of financial supermarkets in the form of universal banks providing a suite
of services from retail to corporate banking and industrial lending to investment
banking. The financial services market has become a battle ground with the marketers
with the latest and the most sophisticated weapons.

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1.2 Definition:-

Universal Banking is a multi-purpose and multi-functional financial supermarket (a

company offering a wide range of financial services e.g. stock, insurance and real-
estate brokerage) providing both banking and financial services through a single
window.
As per the World Bank, "In Universal Banking, large banks operate extensive
network of branches, provide many different services, hold several claims on
firms(including equity and debt) and participate directly in the Corporate Governance
of firms that rely on the banks for funding or as insurance underwriters".

In a nutshell, a Universal Banking is a superstore for financial products under one

roof. Corporate can get loans and avail of other handy services, while can deposit and
borrow. It includes not only services related to savings and loans but also
investments.

However in practice the term 'universal banking' refers to those banks that offer a
wide range of financial services, beyond the commercial banking functions like
Mutual Funds, Merchant Banking, Factoring, Credit Cards, Retail loans, Housing
Finance, Auto loans, Investment banking, Insurance etc. This is most common in
European countries.

For example, in Germany commercial banks accept time deposits, lend money,
underwrite corporate stocks, and act as investment advisors to large corporations. In
Germany, there has never been any separation between commercial banks and
investment banks, as there is in the United States.

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1.3 Meaning:-

It was highly regulated over-administered and subject to discretionary control and

direction. In this sense, financial sector reforms were designed to infuse, in the words
of the terms of reference of the Narasimham Committee, greater competitive vitality
in the system. In the financial system, the players can be broadly classified into the
following groups: public sector banks, private sector banks, foreign banks, co-
operative banks, all- India financial institutions and non-banks.

A common element in all Development Financing Institution (DFI’s) is that they

focus on investment rather than on conventional commercial banking operations, i.e.,
on deposit taking and short-term credit. On the other hand, the commercial banks
continue to concentrate on their traditional business of accepting deposits and
advancing loans. With encouragement and sometimes pressure, they have broadened
their activities to include term credit and a broad range of non-banking finance,
including leasing, venture capital, housing and household finance, mutual fund
management, credit-card sponsorship, etc.

The term 'Universal Banking' in general refers to the combination of commercial

banking and investment banking. The concept of universal banking is spreading fast
among various types of banks. It is a multipurpose and multi-functional financial
supermarket providing both 'Banking and Financial Services' through a single
window.

As per the World Bank," In Universal Banking, large banks operate extensive
network of branches, provide many different services, hold several claims on firms
(including equity and debt) and participate directly in the Corporate Governance of
firms that rely on the banks for funding or as insurance underwriters." In a nutshell, a
Universal Banking is a superstore for financial products, under one roof. Corporate
can get loans and avail of other handy services, while individuals can bank and
borrow. It includes not only services related to savings and loans but also investment.
However, in practice the term 'Universal Banking' refers to those banks that offer
wide range of financial services beyond the commercial banking functions like
Mutual Funds, Merchant Banking, Factoring, Insurance, Credit Cards, Retail loans,
Housing Finance, Auto Loans, etc.
4
 CHAPTER 2

HISTORY OF UNIVERSAL BANKING IN INDIA:-

Historically, India followed a very compartmentalized financial intermediaries

allowed to operate strictly in their own fields respectively. However, in the 1980s
banks were allowed to undertake various non-traditional activities through
subsidiaries. This trend got momentum in the early 1990s i.e. , after initiation of
economic reforms with banks allowed undertaking certain activities, such as, hire
purchase and leasing in - housing. While this in a way represented a gradual move
towards universal banking, the current debate about universal banking in India started
with the demand from the DFIs that they should be allowed to undertake banking
activity in - house. In the wake of this demand, the Reserve Bank of India constituted
in December 1997, a working group under the chairmanship of Shri S.H. Khan, the
Chairman & the Managing Director of IDBI (hereafter referred to as Khan Working
Group - KWG). The KWG, which submitted its report in May 1998, recommended a
progressive move towards universal banking. The Second Narsimham Committee
appointed by Government in 1998 also echoed the same sentiment. In January 1999,
the Reserve Bank issued a discussion paper setting out issues arising out of
recommendations of the KWG and the Second Narsimham Committee. Since then a
debate has been going on about universal banking in general and conversion of DFIs
into universal banks in particular. With the opening up of the insurance sector to the
private participation, the debate has gone beyond the narrow concept of universal
banking.

In India Development financial institutions (DFI) and refinancing institutions (RFIS)

were meeting specific sectoral needs and also providing long - term resources at
concessional terms, while the commercial banks in general, by and large, confined
themselves to the core banking functions of accepting deposits and providing
working capital finance to industry, trade and agriculture. Consequent to the
liberalization and deregulation of the financial sector, there has been a blurring of
distinction between the commercial and investment banking, Reserve Bank India
constituted on November 8, 1997, a Working Group under the Chairmanship of Shri
S.H. Khan to bring about greater clarity in the respective roles of banks and financial
institutions for greater harmonization of facilities and obligations. Also report of the

5
Committee on Banking Sector Reforms or Narasimham Committee (NC) has major
bearing on the issues considered by the Khan group. The issue of universal banking
resurfaced in year 2000, when ICICI gave a presentation to RBI to discuss the time
frame and possible options for transforming itself into an universal bank. Reserve
Bank of India also spelled out to Parliamentary Standing Committee on Finance, its
proposed policy for universal banking, including a case-by-case approach towards
allowing domestic financial institutions to become the universal banks. Now RBI has
asked Fly, which are interested to convert itself into a universal bank, to submit their
plans for transition to a universal bank for consideration and further discussions. FIs
need to formulate a road map for the transaction path and strategy for smooth
conversation into a universal bank over a specified time frame.

2.1 KHAN COMMITTEE ON UNIVERSAL BANKING & FIS

The khan committee on harmonizing the role and operations of development financial
institutions and banks submitted its report on April 24, 1998 with the following
recommendations: -

 Give banking license to DFIs

 Merge banks with banks, DFIs
 Bring down CRR progressively
 Phase out SLR
 Redefine priority sector
 Set up a super regulator to coordinate regulators' activities
 Develop risk - based supervisory framework
 Usher in legal reforms in debt recovery
 State level FIS be allowed to Go public and come under RBI
 DFIs to be allowed to have wholly - owned banking subsidiaries
 Remove cap on FIS 'resources mobilization
 Grant authorized dealers' license to DFIS
 Set up a standing committee to coordinate lending policies.

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2.2 Some Concepts…

 Universal Banking

Universal banking refers to elimination of the distinction between the development

financial institutions and the banks and market segmentation that presently exists
between them.

 Harmonization Of Role Of Banks And DFIs

Harmonization means the introduction of universal banking in a limited sense,
wherein the DFIs could become banks and intermediate in the short - term end of the
financial market (say finance for working capital) and commercial banks could enter
the long - term end of the financial market (say project financing). In other words,
the harmonization allows the DFIs and banks to move freely to the other end than
where they are presently placed.

 The Main Areas of Operations of DFIs and Banks Presently and How
Universalization Will Change That Role in Future
DFIs are specialist institutions catering to different sectors, appraising projects from
technical and financial parameters and finance long-term investment requirements.
This specialization has given edge to DFIs in terms of project appraisal. On the other
hand, the banks meet the short term investment and production requirements and they
have developed expertise in providing working capital finance to industry, exports,
imports, small industry, agriculture etc. They can take as intermediates in a big way
at the other end of their markets where they are less dominant presently. Some of
them may even diversify into insurance and other related areas.

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 Requirement of Cost Considerations in Universalization
Cost of Funds differentiates the DFIs from banks, as DFIs incur higher costs for
mobilizing long-term finance. Banks do not normally mobilize substantial deposit
resources with maturities in excess of 5 years, which limits their capacity to extend
long - term loans. This has resulted in participation type of relationship in financing
by banks and DFIS.

 The Areas of Conflict arising between Banks and DFIs

There are conflicts related to securities for the loans sanctioned by the banks and
DFIs. While the DFIs have first charge over block assets, the banks have first charge
on current assets, which place both the banks and DFIs in different positions.
Another area of conflict is extension of refinance by DFIs to banks to supplement
banks' long - term resources. But due to higher cost of their funds, the DFIs find it a
losing proposition.

 The Committee Which Recommended Universal Banking & What It Suggested

The SH Khan Committee suggested the concept of Universal Banking. It is also
suggested to give banking license to DFIs, merging banks with banks or DFIs, bring
down CRR progressively, phase out SLR, redefine priority sector, set up a super
regulator to coordinate regulators' activities develop risk - based supervisory
framework, usher in legal reforms in debt recovery, allow state level Fis to go public
and come under RBI, permit DFIs to have wholly - owned banking subsidiaries,
remove cap on FLS' resources mobilization, grant authorized dealers license to DFIs,
set up a standing committee to coordinate lending policies etc.

8
 The Likely Gains From Universalization
The universalization is expected to result in expansion of banks and diversification
into new financial and Para - banking services. The business focus of the banks
would emerge on profit lines. This may at the same time result in reluctance on their
part to enter the smaller end of retail banking particularly, the small borrowers in rural
areas, who may find it difficult to access the banking services, since they do not
contribute substantially to banks business volumes Or Profits.

 The Apprehensions of Universalization

The financial services may not become the privilege of elitist. If the reforms with a
human face are what we want, the universal banking has to make adjustments and
ensure that financial services are available to all at affordable cost.

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2.3 Advantages And Limitations Of Universal Banking:-

 ADVANTAGES

1. Greater economic efficiency

The main argument in favor of universal banking is that it results in greater

economic efficiency in the form of lower cost, higher output and better products. This
logic stems from the reason that when sector participants are free to choose the size
and product - mix of their operations, they are likely to configure their activities in a
manner that would optimize the use of their resources and circumstances.

2. Economies of scale

It means lower average costs, which arise when larger volume of operations
are performed for a given level of overhead on investment. Economies of scope arise
in multi - product firms because costs of offering various activities by different units
are greater than the costs when they are offered together. Economies of scale and
scope have been given as the rationale for combining the activities. A larger size and
range of operations allow better utilization of resources / inputs.

3. Easy handling of business cycles

Due to various shifts in business cycles, the demand for products also varies
at different points of time. It is generally held that universal banks could easily
handle such situations by shifting the resources within the organization as compared
to specialized banks. Specialized firms are also subject to substantial risks of failure
because their operations are not well diversified. By offering a broader set of
financial products than what a specialized bank provides, it has been argued that a
universal bank is able to establish long - term relationships with the customers and
provide them with a package of financial services through a single window.

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 LIMITATIONS

1. Failure Risk System

The larger the banks, the greater the effects of their failure on the system.
The failure of a larger institution could have serious ramifications for the entire
system in that if one universal bank were to collapse, it could lead to a systemic
financial crisis. Thus, universal banking could subject the economy to the
increased systemic risk.

2. Risk of increase in Monopoly power

Historically, an important reason for limiting combinations of activities has
been the fear that such institutions, by virtue of their sheer size, would gain
monopoly power in the market, which can have significant undesirable
consequences for economic efficiency [Borio and Filosa, 1994). Two kinds of
concentration should be distinguished; the dominance of universal banks over non
- financial companies and concentration in the market for financial services. The
critics of universal banks blame universal banking for fostering cartels and
enhancing the power of large non-banking firms.

3. Bureaucratic and inflexible

Some critics have also observed that universal banks tend to be bureaucratic
an inflexible and hence they tend to work primarily with large established
customers and ignore or discourage smaller and newly established businesses.
Universal banks could use such practices as limit pricing or predatory pricing to
prevent smaller specialized banks from serving the market. This argument mainly
stems from the economies of scale and scope.

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 CHAPTER 3

THE CONCEPT AND MODEL OF UNIVERSAL BANKING

3.1 Concept:-

According to World Bank the concept is explained as follows - "In universal banking,
large banks operate extensive networks of branches, provide many different services,
hold several claims on firms (including equity and debt), and participate directly in
the corporate governance of firms that rely on the banks for funding or as insurance
underwriters." Universal Banking (UB) usually takes one of the three forms, i.e., in-
house, through separately capitalized subsidiaries, or through a holding a capital
structure. Three well-known countries in which these structures prevail are Sweden
and Germany, the UK & US. Universal in its fullest or purest form would allow
banking corporate to engage 'in-house in any activity associated with banking,
insurance, securities, etc. However, there are very few countries, such as, Sweden and
Hong Kong, which allow universal banking in its purest form. In Germany, banking
and investment activities are combined, but separate subsidiaries are required for
certain other activities. Under German banking statutes, all activities could be carried
out within the structure of the parent bank except insurance, mortgage banking and
mutual funds, which require legally, separate subsidiaries. In the UK, a broad range of
financial activities is allowed to be conducted through separate subsidiaries of the
bank. The third model, which is found in the US, generally requires a holding
company structure and separately capitalized subsidiaries. In certain countries these
types of universal banking are successfully functioning. Universal banking is nothing
but broad based bank where you can do commercial banking, investment, insurance,
and other financial business. It is largely found in different countries in different
forms.

12
The entry of banks into the realm of financial services was followed very soon after
the introduction of liberalization in the economy. Since the early 1990s structural
changes of profound magnitude have been witnessed in global banking systems.
Large scale mergers, amalgamations and acquisitions between the banks and financial
institutions resulted in the growth in size and competitive strengths of the merged
entities. Thus, emerged new financial conglomerates that could maximize economies
of scale and scope by building the production of financial services organization called
Universal Banking.

By the mid-1990s, all the restrictions on project financing were removed and banks
were allowed to undertake several in-house activities. Reforms in the insurance sector
in the late 1990s, and opening up of this field to private and foreign players also
resulted in permitting banks to undertake the sale of insurance products. At present,
only an 'arm's length relationship between a bank and an insurance entity has been
allowed by the regulatory authority, i.e. IRDA (Insurance Regulatory and
Development Authority).

The phenomenon of Universal Banking as a distinct concept, as different from

Narrow Banking came to the forefront in the Indian context with the Narsimham
Committee (1998) and later the Khan Committee (1998) reports recommending
consolidation of the banking industry through mergers and integration of financial
activities.

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3.2 Model:-

THREE KEY BUSINESS AREAS:-

1. RETAIL BANKING consumer loans, credit cards (top 33 US

issuer), mortgages, internet banking and ample range of deposits.

2. CORPORATE BANKING a full range of products and financial service

for SMEs and corporate.

3. WEALTH MANAGEMENT advises and tailored products to

individual costumers, retirement plans and private banking. USS
8Bn in AUM.

14
3.3 A SOLUTION OF UNIVERSAL BANKING COUPLED WITH

SWOT

The solution of Universal Banking was having many factors to deal with which
further categorized under Strengths, Weaknesses, Opportunities and Threats.

Strengths:

* Economies of Scale

The main advantage of Universal Banking is that it results in greater economic

efficiency in the form of lower cost, higher output and better products. Various
Reserve Banks Committees and reports in favour of Universal Banking, is that it
enables banks to exploit economies of scale and scope. It means a bank can reduce
average costs and thereby improve spreads if it expands its scale of operations and
diversifying activities.

* Profitable Diversions

By diversifying the activities, the bank can use its existing expertise in one type of
financial service in providing other types. So, it entails less cost in performing all the
functions by one entity instead of separate bodies.

* Resource Utilization

A bank possesses the information on the risk characteristics of the clients, which it
can use to pursue other activities with the same client. A data collection about the
market trends, risk and returns associated with portfolios of Mutual Funds,
diversifiable and non diversifiable risk analysis, etc are useful for other clients and
information seekers. Automatically, a bank will get the benefit of being involved in
Research.

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* Easy marketing on the foundation a of Brand name

A bank has an existing network of branches, which can act as shops for selling
products like Insurance, Mutual Fund without many efforts on marketing, as the
branch will act here as a parent company or source. In this way a bank can reach the
remotest client without having to take recourse to an agent.

* One stops shopping

The idea of 'one stop shopping' saves a lot of transaction costs and increases the speed
of economic activities. It is beneficial for the bank as well as customers.

* Investor friendly activities

Another manifestation of Universal Banking is bank holding stakes in a firm. A

bank's equity holding in a borrower firm, acts as a signal for other investors on to the
health of the firm, since the lending bank is in a better position to monitor the firm's
activities.

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Weaknesses:

* Grey area of Universal Bank

The path of Universal Banking for DFIs is strewn with obstacles. The biggest one is
overcoming the differences in regulatory requirements for a bank and DFI. Unlike
banks, DFIs are not required to keep a portion of their deposits as cash reserves.

* No expertise in long term lending

In the case of traditional project finance an area where DFIs tread carefully, becoming
a bank may not make a big difference. Project finance and Infrastructure Finance are
generally long gestation projects and would require DFIs to borrow long term.
Therefore, the transformation into a bank may not be of great assistance in lending
long-term.

* NPA problem remained intact

The most serious problem of DFIs have had to encounter is bad loans or Non
Performing Assets (NPA). For the DFIs and Universal Banking or installation of
cutting-edge technology in operations are unlikely to improve the situation concerning
NPAs. Most of the NPAs came out of loans to commodity sectors, such as steel,
chemicals, textiles, etc.

The improper use of DFI funds by project promoters, a sharp change in operating
environment and poor appraisals by DFIs combined to destroy the viability of some
projects. So, instead of improving the situation Universal Banking may worsen the
situation, due to the expansion in activities banks will fail to make thorough study of
the actual need of the party concerned, the prospect of the business, in which it is
engaged, its track record, the quality of the management, etc.

ICICI suffered the least in this section, but the IDBI has got worst hit of NPAs,
considering the negative developments at Dabhol Power Company (DPC).

17
Opportunities:

* To increase efficiency and productivity Liberalization offers opportunities to banks.

Now, the focus will be on profits rather than on the size of balance sheet. Fee based
incomes will be more attractive than mobilizing deposits, which lead to lower cost
funds. To face the increased competition, banks will need to improve their efficiency
and productivity, which will lead to new products and better services.

* To get more exposure in the global market In terms of total asset base and net worth
the Indian banks have a very long road to travel when compared to top 10 banks in the
world. (SBI is the only Indian bank to appear in the top 100 banks list of 'Fortune 500'
based on sales, profits, assets and market value. It also ranks II in the list of Forbes
2000 among all Indian companies) as the asset base sans capital of most of the top 10
banks in the world are much more than the asset base and capital of the entire Indian
banking sector. In order to enter at least the top 100 segment in the world, the Indian
banks need to acquire a lot of mass in their volume of operations. Pure routine
banking operations alone cannot take the Indian banks into the league of the Top 100
banks in the world. Here is the real need of universal banking, as the wide range of
financial services in addition to the Commercial banking functions like Mutual Funds,
Merchant banking, Factoring, Insurance, credit cards, retail, personal loans, etc. will
help in enhancing overall profitability.

* To eradicate the 'Financial Apartheid' A recent study on the informal sector

conducted by Scientific Research Association for Economics (SRA), a Chennai based
association, has found out that, 'Though having a large number of branch network in
rural areas and urban areas, the lowest strata of the society is still out of the purview
of banking services. Because the small businesses in the city, 34% of that goes to
money lenders for funds. Another 6.5% goes to pawn brokers, etc.

18
The respondents were businesses engaged in activities such as fruits and vegetables
vendors, laundry services, provision stores, petty shops and tea stalls. 97% of them do
not depend the banking system for funds. Not because they do not want credit from
banking sources, but because banks do not want to lend these entrepreneurs. It is a
situation of Financial Apartheid in the informal sector. It means with the help of retail
and personal banking services Universal Banking can reach this stratum easily.

Threats:

* Big Empires

Universal Banking is an outcome of the mergers and acquisitions in the banking

sector. The Finance Ministry is also empathetic towards it. But there will be big
empires which may put the economy in a problem. Universal Banks will be the largest
banks, by their asset base, income level and profitability there is a danger of 'Price
Distortion'. It might take place by manipulating interests of the bank for the self
interest motive instead of social interest. There is a threat to the overall quality of the
products of the bank, because of the possibility of turning all the strengths of the
Universal Banking into weaknesses. (e.g. - the strength of economies of scale may
turn into the degradation of qualities of bank products, due to over expansion. If the
banks are not prudent enough, deposit rates could shoot up and thus affect profits. To
increase profits quickly banks may go in for riskier business, which could lead to a
full in asset quality. Disintermediation and securitization could further affect the
business of banks.

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3.4 Needs of Universal Banking:-

 The phenomenon of universal banking - as different from narrow banking is

suddenly in the news. With the second Narasimham Committee (1998) and
the Khan Committee (1998) reports recommending consolidation of the
banking industry through mergers and integration of financial activities, the
stage seems to be set for a debate on the entire issue.

 A universal bank is a one - stop supplier for all financial products and
activities, like deposits, short - term and long - term loans, insurance,
investment etc.

 The benefits to banks from universal banking are the standard argument given
everywhere also by the various Reserve Bank committees and reports in
favour of universal banking is that it enables banks to exploit economies of
scale and scope.

 So that a bank can reduce average costs and thereby improves spreads if it
expands its scale of operations and diversifies its activities.

 The bank can diversify its existing expertise in one type of financial service in
providing the other types. So, it entails less cost in performing all the
functions by one entity instead of separate specialized bodies.

 A bank has an existing network of branches, which can act as shops for selling
products like insurance. This way a big bank can reach the remotest client
without having to take recourse to any agent.

 Many financial services are inter - linked activities, e.g. Insurance and
lending. A bank can use its instruments in one activity to exploit the other.

20
  The idea of one - stop - shopping saves a lot of transaction costs and increases
the speed of economic activity. Another manifestation of universal banking is
a bank holding stakes in a firm.

 In India, too, a lot of opportunities are there to be exploited. Banks, especially

the financial institutions, are aware of it. And most of the groups have plans
to diversify in a big way.

 At present, only an arm - length relationship between a bank and an insurance

entity has been allowed by the regulatory authority, i.e. the Insurance
Regulatory and Development Authority (IRDA).

 Development financial institutions (DFIs) can turn themselves into banks, but
have to adhere to the statutory liquidity ratio and cash reserve requirements
meant for banks, which they are lobbying to avoid.

 All these can be seen as steps towards an ultimate culmination of financial

intermediation in India into universal banking.

Universal Bank: International Comparisons & Theoretical Perspectives, The

Deregulation and disintermediation process, the globalization of financial markets, the
emergence of new competitors, and the introduction of new information technologies
has brought about profound changes in the banking industry. Banks have lost market
share and show decreasing economic performance. In the wake of this the author
addresses several important questions like are universal banks bound to disappear?
What is the role of universal banks in modern financial markets? What should banks’
strategic reactions be to these changes in the industry?

21
Universal Banking in India: Evolution, Trends, and Performance, with the
comprehensive financial reforms in 1990s, Indian banking sector witnessed several
mergers and acquisitions, emergence of financial conglomerates, and wider
participation of private and foreign banks. As a result, large and diversified financial
entities, called universal banks, started offering traditional banking as well as value
added services including project consultancies, underwriting, investment banking,
credit rating and other customized services under one stop shop model. This
monograph is an attempt to quantify the extent of universalization among banks
operating in India, and empirically measure their technical, allocating and cost
efficiency for the period from 1997 to 2002.

According to Sri P.T. Kuppuswamy, Managing Director and Chief

Executive Officer: It is a historical fact that monolithic organization, like a super
bank, cannot care for the customers. The banking system in India has over 67000
branches today, and it is questioned whether the development financial institutions
will set up a similar network. However, there should be level playing field between
players in the financial market. Further all banks must be allowed to grow such that
instead of geographical based tiered system, it should be more on functional lines.

Chaitanya, Krishna V (2005) observed that, since 1990 the financial sector reforms
were introduced the banking sector saw the emergence of new generation of private
sector banks, and these banks gained at most popularity as they have technology edge
and better business models, and when compared to public sector banks. Thus, the

22
most important thing is they able to attract more volumes simply because they meet
their customers‟ requirements under one roof, and focused on understanding the
concept of universal banking in India attempts to explain the regulatory role and
requirements key duration and maturity distinction and the optimal transaction path
which gives an overview of the international experience and argues in favor of
developing a strong domestic financial system in order to compete in the global
market.

Dash Priyadarshi and Bhole L.M. observed that, universal banking is rising like
workable model of business for banks in India which gives functional diversification
and also generates efficiency and productivity gains.
Nationalized bank has been found less universalized compared to India private and
Foreign Banks. It was also found that the duration of 1997 to 2002 performance of
foreign banks well as for as universal banking is concern.

23
 CHAPTER 4

4.1 Universal Banking – Current Position in India:-

In India Development financial institutions (DFIS) and refinancing institutions (RFIS)

were meeting specific sectoral needs and also providing long - term resources at
concessional terms, while the commercial banks in general, by and large, confined
themselves to the core banking functions of accepting deposits and providing
working capital finance to industry, trade and agriculture. Consequent to the
liberalization and deregulation of financial sector, there has been blurring of
distinction between the commercial banking and investment banking.

Reserve Bank of India constituted on December 8, 1997, a Working Group under the
Chairmanship of Shri S.H. Khan to bring about greater clarity in the respective roles
of banks and financial institutions for greater harmonization of facilities and
obligations. Also report of the Committee on Banking Sector Reforms or
Narasimham Committee (NC) has major bearing on the issues considered by the Khan
Working Group

The issue of universal banking resurfaced in year 2000, when ICICI gave a
presentation to RBI to discuss the time frame and possible options for transforming
itself into an universal bank. Reserve Bank of India also spelled out to Parliamentary
Standing Committee on Finance, its proposed policy for universal banking, including
a case-by-case approach towards allowing domestic financial institutions to become
universal banks.

Now RBI has asked FIS, which are interested to convert itself into a universal bank,
to submit their plans for transition to a universal bank for consideration and further
discussions. FIS need to formulate a road map for the transition path and strategy for
smooth conversation into a universal bank over a specified time frame. The plan
should specifically provide for full compliance with prudential norms as applicable to
banks over the proposed period.

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4.2 Future Trend of Universal Banking in Different Country:-

Universal banks have long played a leading role in Germany, Switzerland, and other
Continental European countries. The principal financial institutions in these countries
typically are universal banks offering the entire array of banking services.
Continental European banks are engaged in deposit, real estate and other forms of
lending, foreign exchange trading, as well as underwriting, securities trading, and
portfolio management. In the Anglo - Saxon countries and in Japan, by contrast,
commercial and investment banking tend to be separated. In recent years, though,
most of these countries have lowered the barriers between commercial and investment
banking, but they have refrained from adopting the Continental European system of
universal banking. In the United States, in particular, the resistance to softening the
separation of banking activities, as enshrined in the Glass-Seagull Act, continues to be
stiff.

In Germany and Switzerland the importance of universal banking has grown since the
end of World War II. Will this trend continue so that universal banks could
completely overwhelm the specialized institutions in the future? Are the specialized
banks doomed to disappear? This question cannot be answered with a simple "yes" or
"no". The German and Swiss experiences suggest that three factors will determine
future growth of universal banking.

First, universal banks no doubt will continue to play an important role. They possess
a number of advantages over specialized institutions. In particular, they are able to
exploit economies of scale and scope in banking. These economies are especially
important for banks operating on global scale and catering to customers with a need
for highly sophisticated financial services. As we saw in the preceding section,
universal banks may also suffer from various shortcomings. However, in an
increasingly competitive environment, these defects will likely carry far less weight
than in the past.

25
Second, although universal banks have expanded their sphere of influence, the
smaller specialized institutions have not disappeared. In both Germany and
Switzerland, they are successfully coexisting and competing with the big banks. In
Switzerland, for example, the specialized institutions are firmly entrenched in such
areas as real estate lending, securities trading, and portfolio management. The
continued strong performance of many specialized institutions suggests that universal
banks do not enjoy a comparative advantage in all areas of banking.

Third, universality of banking may be achieved in various ways. No single type of

universal banking system exists. The German and Swiss universal banking systems
differ substantially in this regard. In Germany, universality has been strengthened
without significantly increasing the market shares of the big banks. Instead, the
smaller institutions have acquired universality through cooperation. It remains to be
seen whether the cooperative approach will survive in an environment of highly
competitive and globalized banking.

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4.3 ISSUES & CHALLENGES IN UNIVERSAL BANKING

I. Challenges in Universal Banking:-

There are certain challenges, which need to be effectively met by the universal banks.
Such challenges need to build effective supervisory infrastructure, volatility of prices
in the stock market, comprehending the nature and complexity of new financial
instruments, complex financial structures, determining the precise nature of risks
associated with the use of particular financial structure and transactions, increased
risk resulting from asymmetrical information sharing between banks and regulators
among others. Moreover norms stipulated by RBI treat DFIs at par with the existing
commercial banks. Thus, all Universal banks have to maintain the CRR and the SLR
requirement on the same lines as the commercial banks. Also, they have to fulfill the
priority sector lending norms applicable to the commercial banks. These are the major
hurdles as perceived by the institutions, as it is very difficult to fulfill such norms
without hurting the bottom-line. There are certain challenges, which need to be
effectively met by the universal banks. Such challenges include weak supervisory
infrastructure, volatility of prices in the stock market, comprehending the nature and
complexity of new financial instruments, complex financial structures, determining
the precise nature of risks associated with the use of particular financial structure and
transactions, increased risk resulting from asymmetrical information sharing between
banks and regulators among others.

27
II. Issues of concern for Universal Banking:-

➢ Deployment of capital:

If a bank were to own a full range of classes of both the firm’s debt and equity the
bank could gain the control necessary to effect reorganization much more
economically. The bank will have greater authority to intercede in the management of
the firm as dividend and interest payment performance deteriorates.

➢ Unhealthy concentration of power:

In many countries such a risk prevails in specialized institutions, particularly when

they are government sponsored. Indeed, public choice theory suggests that because
Universal Banks serve diverse interest, they may find it difficult to combine as a
political coalition – even this is difficult when number of members in a coalition is
large.

➢ Impartial Investment Advice:

There is a lengthy list of problems, involving potential conflicts between the bank’s
commercial and investment banking roles. For example, there may be possible
conflict between the investment banker’s promotional role and commercial banker’s
obligation to provide disinterested advice. Or where a Universal Bank’s securities
department advises a bank customer to issue new securities to repay its bank loans.
But a specialized bank that wants an unprofitable loan repaid also can suggest that the
customer issues securities to do so.

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4.4 Approach to Universal Banking:-

The Narsimham Committee II suggested that Development Financial Institutions

(DFIs) should convert ultimately into either commercial banks or non bank finance
companies. The Khan Working Group held the view that DFIS should be allowed to
become banks at the earliest. The RBI released a 'Discussion Paper' (DP) in January
1999 for wider public debate. The feedback on the discussion paper indicated that
while the universal banking is desirable from the point of view of efficiency of
resource use, there is need for caution in moving towards such a system by banks and
DFIs.

The principle of "Universal Banking" is a desirable goal and some progress has
already been made by permitting banks to diversify into investments and long term
financing and the DFIs to lend for working capital, etc. However, banks have certain
special characteristics and as such any dilution of RBI's prudential and supervisory
norms for conduct of banking business would be inadvisable.

Though the DFIs would continue to have a special role in the Indian financial system,
until the debt market demonstrates substantial improvements in terms of liquidity and
depth, any DFI, which wishes to do so, should have the option to transform into bank
(which it can exercise), provided the prudential norms as applicable to banks are fully
satisfied. To this end, a DFI would need to prepare a transition path in order to fully
comply with the regulatory requirement of a bank. The DFI concerned may consult
RBI for such transition arrangements. Reserve Bank will consider such requests on a
case-by-case basis. Financing requirements, which is necessary. In due course, and
in the light of evolution of the financial system, Narasimham Committee's
recommendation that, ultimately there should be only banks and Restructured NBFCs
can be operationalised.

29
4.5 RBI Guidelines For Existing Banks/FIs For Conversation Into
Universal Banking:-

Salient operational and regulatory issues to be addressed by the FIS For the
conversion into universal bank are:

 Reserve Requirements:

Compliance with the cash reserve ratio and statutory liquidity ratio
requirements (under Section 42 of the RBI Act, 1934, and Section 24 of the Banking
Regulation Act, 1949, respectively) would be mandatory for an FI after its conversion
into a universal bank.

 Permissible activities

Any activity of an FI currently implemented but not permissible for a bank

under Section 6 (1) of the BR Act, 1949 may have to be stopped or divested after its
conversion into a universal bank.

 Disposal of non-banking assets

Any immovable property, howsoever acquired by an FI, would, after its

conversion into a universal bank, be required to be disposed of within the maximum
period of 7 years from the date of acquisition, in terms of section 9 of the BR Act.

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 Composition of the Board

Changing the composition of the Board of Directors might become necessary

for some of the FIS after their conversion into a universal bank, to ensure compliance
with the provisions of Section 10 (A) of the BR Act, which requires at least 51% of
the total number of directors to have special knowledge and experience.

 Prohibition on floating charge of assets

The floating charge, if created by an FI, over its assets, would require, after its
conversion into a universal bank, ratification by the Reserve Bank of India under
Section 14 (A) of the BR Act, since a banking company is not allowed to create a
floating charge on the undertaking or any property of the company unless duly
certified by RBI as required under the section.

 Nature of subsidiaries

If any of the existing subsidiaries of an FI is engaged in an activity not

permitted under section 6 (1) of the BR Act, then on conversion of the FI into a
universal bank, delinking of such subsidiary / activity from the operations of the
universal bank would become necessary since Section 19 of the Act permits a bank to
have subsidiaries only for one or more of the ac trinities permitted under Section 6 (1)
of B. R. Act.

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 Restriction on investments

An Fl with equity investment in companies in excess of 30 per cent of the paid

up share capital of that company or 30 per cent of its own paid - up share capital and
reserves, whichever is less, on its conversion into a Universal bank, would need to
divest such excess holdings to secure compliance with the provisions of Section 19
(2) of the BR Act, which prohibits a bank from holding shares in a company in excess
of these limits.

 Connected lending

Section 20 of the BR Act prohibits grant of loans and advances by a bank on

security of its own shares or grant of loans or advances on behalf of any of its
directors or to any firm in which its director / manager or employee or guarantor is
interested The compliance with these provisions would be mandatory after conversion
of an FI to a universal bank.

 Licensing

An FI converting into a universal bank would be required to obtain banking

license from RBI under Section 22 of the B. R. Act, for carrying on banking business
in India, after complying with the applicable conditions.

 Branch network

An FI, after its conversion into a bank, would also be required to comply with
extant branch licensing policy of RBI under which the new banks are required to allot
at least 25 per cent of their total number of branches in semi - urban and rural areas.

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 Assets in India

An FI after its conversion into a universal bank, will be required to ensure that
at the close of business on the last Friday of every quarter, its total assets held in India
are not less than 75 per cent of its total demand and time liabilities in India, as
required of a bank under section 25 of the BR Act.

 Format of annual reports

After converting into a universal bank, an FI will be required to publish its

annual balance sheet and profit and loss account in the in the forms set out in the
Third Schedule to the BR Act, as prescribed for a banking company under Section 29
and Section 30 of the BR Act.

 Managerial remuneration of the Chief Executive Officers

On conversion into a universal bank, the appointment and remuneration of the

existing Chief Executive Officers may have to be reviewed with the approval of the
RBI in terms of the provisions of Section 35 B of the B. R. Act. The section
stipulates fixation of remuneration of the Chairman and Managing Director of a bank
by Reserve Bank of India taking into account the profitability, net NPAs and other
financial parameters. Under the section, prior approval of RBI would also be required
for appointment of Chairman and Managing Director.

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 Deposit insurance

An FI, on conversion into a universal bank, would also be required to comply

with the requirement of compulsory deposit insurance from DICGC up to a maximum
of Rs. 1lakh per account, as applicable to the banks.

 Authorized Dealer's License

Some of the FIS at present hold restricted AD license from RBI, Exchange
Control Department to enable them to undertake transactions necessary for or
incidental to their prescribed functions. On conversion into a universal bank, the new
bank would normally be eligible for full - fledged authorized dealer license and would
also attract the full rigor of the Exchange Control Regulations applicable to the banks
at present, including prohibition on raising resources through external commercial
borrowings.

 Priority sector lending

On conversion of an FI to a universal bank, the obligation for lending to

"priority sector" up to a prescribed percentage of their 'net bank credit' would also
become applicable to it.

 Prudential norms

After conversion of an FI in to a bank, the extant prudential criteria of RBI for

the all - India financial institutions would no longer be applicable but the norms as
applicable to banks would be attracted and will need to be fully complied with.

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4.6 Impact of Universal Banking:-

Since the early 1990s, banking systems worldwide have been going through a rapid
transformation. Mergers, amalgamations and acquisitions have been undertaken on a
large scale in order to gain size and to focus more sharply on competitive strengths.
This consolidation has produced financial conglomerates that are expected to
maximize economies of scale and scope by ‘bundling’ the production of financial
services. The general trend has been towards downstream universal banking where
banks have undertaken traditionally non-banking activities such as investment
banking, insurance, mortgage financing, securitization, and particularly, insurance.
Upstream linkages, where non-banks undertake banking business, are also on the
increase.

The global experience can be segregated into broadly three models. There is the
Swedish or Hong Kong type model in which the banking corporate engages in in-
house activities associated with banking. In Germany and the UK, certain types of
activities are required to be carried out by separate subsidiaries. In the US type model,
there is a holding company structure and separately capitalized subsidiaries.

In India, the first impulses for a more diversified financial intermediation were
witnessed in the 1980s and 1990s when banks were allowed to undertake leasing,
investment banking, mutual funds, factoring, hire-purchase activities through separate
subsidiaries. By the mid-1990s, all restrictions on project financing were removed and
banks were allowed to undertake several activities in-house. In the recent period, the
focus is on Development Financial Institutions (DFIs), which have been allowed to
setup banking subsidiaries and to enter the insurance business along with banks. DFIs
were also allowed to undertake working capital financing and to raise short-term
funds within limits.

It was the Narasimham Committee II Report (1998) which suggested that the DFIs
should convert themselves into banks or non-bank financial companies, and this
conversion was endorsed by the Khan Working Group (1998). The Reserve Bank’s
Discussion Paper (1999) and the feedback thereon indicated the desirability of
universal banking from the point of view of efficiency of resource use, but it also

35
emphasized the need to take into account factors such as the status of reforms, the
state of preparedness of the institutions, and a viable transition path while moving in
the desired direction.

Accordingly, the mid-term review of monetary and credit policy, October 1999 and
the annual policy statements of April 2000 and April 2001 enunciated the broad
approach to universal banking and the Reserve Bank’s circular of April 2001 set out
the operational and regulatory aspects of conversion of DFIs into universal banks. The
need to proceed with planning and foresight is necessary for several reasons. The
move towards universal banking would not provide a panacea for the endemic
weaknesses of a DFI or its liquidity and solvency problems and/or operational
difficulties arising from undercapitalization, non-performing assets, and asset liability
mismatches, etc.

The overriding consideration should be the objectives and strategic interests of the
financial institution concerned in the context of meeting the varied needs of
customers, subject to normal prudential norms applicable to banks. From the point of
view of the regulatory framework, the movement towards universal banking should
entrench stability of the financial system, preserve the safety of public deposits,
improve efficiency in financial intermediation, ensure healthy competition, and impart
transparent and equitable regulation.

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4.7 FIRST UNIVERSAL BANK IN INDIA: ICICI BANK

Introduction to ICICI Bank:-

The Industrial Credit and Investment Corporation of India limited (ICICI) was formed
in 1955 at the initiative of the World Bank, the government of India and
representatives of Indian industry. The principal objective was to create a
development financial institution for providing medium-term and long-term project
financing to Indian businesses. Until the late 1980s, ICICI primarily focused its
activities on project finance, providing long-term funds to a variety of industrial
projects. ICICI typically obtained funds for these activities through a variety of
government-sponsored and government-assisted programs designed to facilitate
industrial development in India. Today ICICI is one of the largest financial
institutions in India. It provides a wide range of products and services aimed at
fulfilling the banking and financial needs of India's corporate and retail sectors.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank
was reduced to 46% through a public offering of shares in India in fiscal 1998, an
equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's
acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001,
and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal
2002. In the 1990s, ICICI transformed its business from a development financial
institution offering only project finance to a diversified financial services group
offering a wide variety of products and services, both directly and through a number
of subsidiaries and affiliates like ICICI Bank.

After consideration of various corporate structuring alternatives in the context of the

emerging competitive scenario in the Indian banking industry, and the move towards
universal banking, the managements of ICICI and ICICI Bank formed the view that
the merger of ICICI with ICICI Bank would be the optimal strategic alternative for
both entities, and would create the optimal legal structure for the ICICI group's
universal banking strategy.

37
The merger would enhance value for ICICI shareholders through the merged entity's
access to low-cost deposits, greater opportunities for earning fee-based income and
the ability to participate in the payments system and provide transaction-banking
services. The merger would enhance value for ICICI Bank shareholders through a
large capital base and scale of operations, seamless access to ICICI's strong corporate
relationships built up over five decades, entry into new business segments, higher
market share in various business segments, particularly fee-based services, and access
to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of
Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its
wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited
and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by
shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat
at Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the
Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's
financing and banking operations, both wholesale and retail, have been integrated in a
single entity.

38
4.7 UNIVERSAL BANKING: AN OVERVIEW:-

Universal Banking includes not only services related to savings and loans but also
investments. However in practice the term "universal banks' refers to those banks that
offer a wide range of financial services, beyond commercial banking and investment
banking, insurance etc. banking combination of commercial banking, investment
banking and various other activities including insurance. If specialized banking is the
other. This is most co in European countries.

Scenario in India has also changed after the Narasimham Committee (1998) and the
Khan Committee (1998) reports recommended consolidation of the banking industry
through mergers, and integration of financial activities. Today the shining example is
ICICI Bank, the second largest bank (in India) in terms of the size of assets, which has
consolidated all the services after the merger of ICICI Ltd with ICICI Bank. There are
rumors of merger of IDBI with IDBI Bank with the launch of retail banking, Kotak
Mahindra has also embarked on the path of universal banking.

39
 CHAPTER 5

CONCLUSIONS

As a student of BFM, I had a great opportunity to do a project of "Universal Banking"

which was indeed a wonderful experience and has enhanced my knowledge in
banking sector.

This study on universal banking is important not only to an organization,

shareholders and banking sector but also to an Indian economy as a whole. Due to
globalization and liberalization our economy is opening its door for reforms. The
onset of universal banking will undoubtedly accelerate the pace of structural change
within the Indian banking system. The financial institutions as a segment will
essentially convert into banks. This can potentially impose a better corporate control
structure on the firms, they can be sources of long-term finance, and they can
contribute to real sector restructuring. Universal Banking is totally a new concept in
Indian Banking system and ICICI Bank is the first financial institution to go ahead
with this concept.

Thus universal banking, in fact, provides for a cafeteria approach or, if one
were to vary the metaphor, it would take on the role of a one - stop financial
supermarket. Industrial Credit and Investment Corporation of India Ltd. (ICICI),
which was set up as a DFI in 1955, underwent significant changes to meet the
challenges that it faced due to the banking deregulation act. To exploit the synergies
brought by universal banking, it went in for mergers and acquisitions and finally
reverse merged with its subsidiary ICICI Bank.

40
ICICI Bank is today the second largest bank in India and among the top 150 in the
world. In less than a decade, the bank has become a universal bank offering a well
diversified portfolio of financial services. It currently has assets of over US $ 79
billion and a market capitalization of US $ 9 billion and services over 14 million
customers through a network of about 950 branches, 3300 ATM's and a 3200 seat call
center (as of 2007). The hallmark of this exponential growth is ICICI Bank's
unwavering focus on technology.

United Bank for Africa PLC (UBA) is the product of a merger of two of Nigeria's top
five banks, UBA and Standard Trust Bank Plc (STB). Today, consolidated UBA is
the largest financial services institution in sub - Saharan Africa (excluding South
Africa) with a balance sheet size in excess of 400 billion naira (approx. US $ 3Bn),
and over two million active customer accounts. With over 400 retail distribution
outlets across Nigeria, UBA also has a presence in New York, Grand Cayman Island
and aspires to expand within Sub - Saharan Africa. In its determination to continue to
leverage on a robust IT infrastructure designed to achieve excellent service delivery to
its teeming clientele. UBA opted for universal banking solution, comprising core
banking, and corporate e - banking, alerts, CRM and treasury solutions in October
2005.

41
 CHAPTER 6

BIBLIOGRAPHY

Reference books:-

 Harmonizing the Role and operation of development Financial Institution and

book-A Discussion Paper of R.B.I., Mumbai.
 “Universal Banking – International comparisons & Theoretical perspective”
by Jordi Canals.

Magazines:-

 Annual Reports of ICICI Bank

 Indian Institute Journal

Websites:-

 www.rbi.org.in
 www.icicibank.com
 www.banknetindia.com
 www.barclays.com
 www.indiatimes.com
 www.icfaipress.org
 www.financialexpress.com

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