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August 27

I 2008

STATE BANK OF INDIA

Giantitan

“Most people have no idea of the giant capacity we can immediately command when we focus all of our resources on mastering a single area of our lives. lives.”” -Tony Robbins FROM

A SMALL BANK WITH

0.87 GRANTED)

DEPOSITS AND ADVANCES OF CRORES

(ONLY

LOANS

TO BECOMING A GIANT IN THE BANKING SECTOR THROUGH CONSTANT EMERGENCE UNDER SEVERE CIRCUMSTANCES,

BANK

OF INDIA IS A

STATE GLIMMER-

ING EXAMPLE OF SUSTENANCE

customers and its willingness to fulfill it. Only sometime in the late 80s/90s, we seemed to falter. All that the Bank has done by way of organizational restructuri n g , strategies, etc., has always b e e n keeping the customers’ needs in focus. Financial

other 2000 new branches this year. Most of these branches are in the rural and semi-urban areas, where, we believe, there is an increasing need for financial products and services at an affordable cost,” says Bhatt. The SBI Tiny Card, which is a smart card operated through a hand held device with the Business Correspondent, enables the rural account holder to deposit or withdraw cash even if the branch is at a remote location. This is one example of taking technology to the masses.

strength, immaculate systems and procedures, adherence to business ethics of trust and transparency, good corporate governance, use of modern techniques, skilled and dedicated workforce and above all, good customer service, are the main factors that have seen the SBI pass through the test of time.”

Financials

BECAUSE OF STRONG COMMITMENT AND PERFECT VISION.

The origins of the State Bank of India go back to the first decade of the 19th century when the Bank of Calcutta was established in 1806, and three years later received its charter as the Presidency Bank of Bengal. The aim was to mobilize credit both for the East India Company’s Government in Bengal as well as the European merchants, and to stabilize rates of interest. It was the first joint stock bank enjoying limited liability, set up in British India with government sponsorship. It was followed by the Presidency Bank of Bombay in 1840 and Madras in 1843. The three banks were merged in 1921 to create an all-India Bank – the Imperial Bank of India – to extend banking facilities and render the money resources of India more accessible to the country’s trade and commerce. In 1955, by an Act of Parliament the Imperial Bank of India was nationalized to create the State Bank of India (1 July) as the major banking arm of the Government. Commenting on the bank’s ability to deliver consistently while meeting high levels of expectations, even during times of the British raj, SBI Chairman O. P. Bhatt opines, “The main factor has been the ability of the Bank to grasp the need of its

Future plans The primary objective of the bank is to monitor and increase its lead position in existing businesses i.e. SSI, SME, Home Loans, Education Loans, Auto Loans and Agri Business. In the Mid-Corp Group, the focus will be to increase its fee income significantly. The bank is also focusing on reduction in transaction costs by increasing usage of alternative channels – viz. Smart Cards, Internet Banking, ATMs, Mobile Banking etc. Its Corporate Banking business is also being put on the fast track. “We view Financial Inclusion as a huge opportunity rather than an obligation and have drawn up our branch expansion plans accordingly. During 2007-08 alone, we opened as many as 954 new branches and we will be opening a n -

As of March 2008, SBI has 10,270 offices with 1,79, 205 employees with deposits and advances touching Rs 9,54,172 crores and net profit of Rs 6,729 crores.

Recent Spotlight ‘The Banker’ Magazine, London has ranked SBI 57th (up from 70 th last year and 107 the year before) among t h e T o p 1000 banks in the world.

PUNJAB NATIONAL BANK

Varietitan

“V ariety’s the very spice of life, that ggives ives it all its flavor” - William Cowper “Variety’s WITH

OVER

37

MILLION SATISFIED

4598 OFFICES, PUNJAB NATIONAL BANK

CUSTOMERS AND TODAY,

IS AT THE TOP AMONGST

NATIONALISED BANKS IN TERMS OPERATING AND NET PROFIT, BUSINESS, ASSETS SIZE AND NUMBER OF BRANCHES. THROUGH TIME, THE BANK HAS REFLECTED A OF

CERTAIN ÉLAN IN ITS PERSONALITY BUILT WITH THE VARIED FLAVOURS OF INNOVATION, UNDERSTANDING AND FORESIGHT.

Since its humble beginning in 1895 with the distinction of being the first Ind i a n Bank to h a v e b e e n started with Indian capital, PNB has

achieved significant growth in business which at the end of March 2008 amounted to Rs.2,85,959 crore. Established by far-sighted visionaries and patriots, like Lala Lajpat Rai, E C Jessawala, Babu Kali Prasono Roy, Lala Harkishan Lal and Sardar Dyal Singh Majithia, as the first bank, fully owned, managed and administered by Indians. The bank shifted its registered office from Lahore to Delhi in 1947 and was nationalised in 1969. With the passage of time, six private banks Bhagwan Das Bank Ltd (1940), Bharat Bank Ltd (1951), Indo Commercial Bank Ltd (1961), Universal Bank Ltd. (1961), Hindustan Commercial Bank Ltd (1986), Nedungadi Bank Ltd (2003) and one nationalised bank New Bank of India (1993) were merged with PNB. The strong fundamentals, combined with the franchise value enjoyed by the bank and technological resources, are expected to help in making a further leap in business. The bank enjoys com-

petitive advantages in the form of higher share of low cost deposits, robust risk management, strong technology base, large customer base and thorough understanding of the market. The guiding principles of financial prudence, business ethics and customers welfare have stood the bank in good stead in the 113 years of its existence.

Future Plans The bank has been focussing on expanding its operations outside India and has identified some of the emerging economies which offer large business potential. The bank has set up representative offices at Almaty: Kazakhistan, Shanghai: China and London. Besides these, the bank has opened a full fledged Branch in Kabul, Afghanistan. “Keeping in tune with changing times and to provide its customers more efficient and speedy service, the Bank has taken major initiatives in the field of computerization. All the Branches of the Bank have been computerized. The Bank has also aggressively launched the concept of “Any Time, Any Where Banking” through the introduction of Centralized Banking Solution (CBS) and over 2409 offices have already been brought under its ambit. PNB has also introduced Online Payment Facility for railway reservation through IRCTC Payment Gateway Project and Online Utility Bill Payment Services which allows Internet Banking account holders to pay their telephone, mobile, electricity, insurance and other bills anytime from anywhere from their desktop,” said Dr. K.C. Chakrabarty,

Chairman & Managing Director, Punjab National Bank. Another step taken by PNB in meeting the changing aspirations of its clientele is the launch of its Debit card, which is also an ATM card. It enables the card holder to buy goods and services at over 99270 merchant establishments across the country. Besides, the card can be used to withdraw cash at more than 25000 ATMs, where the ‘Maestro’ logo is displayed, apart from over 1094 PNB ATMs and tie up arrangements with other Banks.

Financials The full year Net Profit for 2007-08 rose by 33.03 percent to Rs 2048.76 crore. For the full year 2007-08, operating profit of the bank crossed the Rs 4000 crore landmark to reach Rs 4006.24 crore registering a YOY growth of 10.75%. During 2007-08, the Net Interest Income (NII) increased by 6.16 percent to Rs 5534.16 crore (Rs 5213.24 crore during 2006-07).

Recent Spotlight Punjab National Bank is negotiating with Visa Inc. to start independent credit card services for its 37 million customers.

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August 27

I 2008

BANK OF BARODA

Indomititan

“Streng th does not come from physical capacity “Strength capacity.. It comes from an indomitable will. will.”” - Mohandas Karamchand Gandhi BANK

OF

BARODA’S

STORY IS

SCRIPTED IN CORPORATE WISDOM AND SOCIAL PRIDE. IT IS A STORY CRAFTED IN PRIVATE CAPITAL, PRINCELY PATRONAGE AND STATE OWNERSHIP. IT IS ABOUT VISIONARY BANKERS AND THEIR EX-

Between 1968 and 1978, the Bank recorded a tremendous growth crossing the turnover of Rs 3,100 crore. By 1978-end, the Bank spread its wings in terms of 1,365 branches from 333, a decade ago. With its new logo “The Baroda Sun”, its visibility and brand value have improved significantly.

TRAORDINARY CONTRIBUTION IN THE ASCENT OF

BARODA

BANK

OF

TO THE FORMIDABLE

HEIGHTS OF CORPORATE GLORY.

THE

SPIRIT HAS BEEN

INDOMITABLE AND THE JOURNEY IS GOING STRONG BY THE DAY.

For Bank of Baroda, it has been a long and eventful journey across 100 years and 27 countries. Starting in 1908 and backed by the vision of the founding father, Maharaja Sayajirao Gaekwad III, it has come a long way from a small building in Baroda to its new hi-rise and hi-tech Baroda Corporate Centre in Mumbai. “Bank of Baroda’s growth could not have been possible without an effective structural leadership at the top and functional leadership at various levels in the Bank, right since its inception, that took the Bank to the unprecedented heights of success bit by bit over the 100-year period. It was the visionary capability and leadership qualities of the people who held strategic positions in the organization that really saw Bank of Baroda through the test of time,” feels M.D. Mallya, Chairman & M.D, Bank of Baroda. The Bank started with about 20 people and a meager turnover of Rs 40 lakh. By the time, India achieved its Independence, the Bank had grown its business manifold reaching the level of over Rs 50 crore with 38 branches and manpower of more than 1,200.

Future Plans As the Bank stands at the threshold of its next century, “marketing” would become a key growth driver. The thrust areas would be on enhancing sales and raising brand equity through continuous market research for information. “The existing sales structure needs to be expanded. We are currently working out a strategic mass communication and events plan for the financial year 2008-09, focused towards brand enhancement. Significant initiatives in customer education are also envisaged in the coming year for our CRM initiatives,” says Mallya. The Bank will have primary thrust on improving its NIM by increasing the CASA share.

The emphasis would be on improving the share of Retail/SME businesses with high asset quality. “We will continue leveraging technology/re-branding exercise to extract maximum benefits. Targeting on improving non-interest income through innovative Wealth Management Products would be pursued vigorously. We shall place our thrust on business process reengineering to reduce the transaction costs, with a dedicated effort to add 2.5 to 3.0 million quality customers to the bank’s book in 2008-09 and also in subsequent years,” says Mallya.

Financials Touching the global customer base of more than 33 million, the Bank has comfortably crossed the global business level of Rs 2,50,000 crore by endMarch 2008 reflecting a growth of 24%.

Recent Spotlight In July this year, the Bank announced its plan to open 10 new overseas branches across the globe. The bank also announced a slew of other initiatives including the opening of 21 branches across the country.

4

August 27

I 2008

TATA STEEL

Trustitan

“Without trust, words become the hollow sound of a wooden gong. With trust, words become life itself itself..”- Anonymous STEEL

SIGNIFIES STRENGTH.

IT

FORTIFIES BELIEF AND EVEN LENDS SUPPORT TO MANY DREAMS. IT SURE IS AN ALLOY, BUT IT HAS LIVED A LIFE OF BENEVOLENCE. IT HAS SHAPED THE FUTURE OF

versified steel producer, with operations in 26 countries and commercial presence in over 50 countries. Through investments in Corus, a subsidiary of Tata Steel, Millennium Steel (renamed Tata Steel Thai-

raw materials security through joint ventures in Thailand, Australia, Mozambique, Ivory Coast and Oman. Exploration of opportunities in titanium dioxide business in Tamil Nadu, ferro-chrome plant in South Africa and setting up of a deep-sea port in coastal Orissa are integral to the growth and globalisation objective of Tata Steel.

land) and NatSteel Asia, Singapore, Tata Steel has created a manufacturing and marketing network in Europe, South East Asia and the Pacific-rim countries. Corus, which manufactured over 20 Million Tonnes (MT) of steel in 2008, has operations in the UK, the Netherlands, Germany, France, Norway and Belgium. Tata Steel (Thailand) is the largest producer of long steel products in Thailand, with a manufacturing capacity of 1.7 MT. NatSteel Asia produces about 2 MT of steel products annually across its regional operations in seven countries. Tata Steel, through its joint venture with Tata BlueScope Steel Limited, has also entered the steel building and construction applications market. The iron ore mines and collieries in India give the Company a distinct advantage in raw material sourcing. Tata Steel is also striving towards

Future Plans

COUNTRIES AND COUNTLESS LIVES; IT STILL DOES.

BUT

THE

PRECISION OF MAGIC LIES IN THE EYES OF THE KEEN BEHOLDER.

TATA

KNEW THE

MAGIC QUITE WELL.

Dreams are unreal, but few make it real to absolute perfection. Tata Steel is one among those companies which strived to give dreams a real shape. The origins and ascent of Tata Steel, which has culminated into the century long history of an industrial empire, emerge from the illustrious efforts of India’s original iron man and the remarkable people who thereafter, have kept the fire burning - Jamsetji Nusserwanji Tata. Established in 1907, Tata Steel is the world’s 6th largest steel company with an existing annual crude steel capacity of 30 million tonnes. Asia’s first integrated steel plant and India’s largest integrated private sector steel company, is now the world’s second most geographically di-

Tata Steel plans to grow and globalise through organic and inorganic routes. Its 6.8 million tonnes per annum (MTPA) Jamshedpur Works plans to achieve 10 MT capacity by 2010. Tata Steel also has plans for a 1.2 MTPA Metcoke project in West Bengal, Deep sea port in Dhamra, Orissa, Titanium Dioxide project in Tamil Nadu, and a Joint Venture with BlueScope Steel for metallic coating and painting steel unit. Overseas plans include development of a source of low ash coal from Queensland, Australia; Ferro Chrome production in Richards Bay, South Africa; Coking Coal project in Mozambique; Development of iron ore deposits in Ivory Coast; and a Limestone mining project in Oman.

Financials The net sales/income from Operations for Tata Steel was Rs. 131,535.88 Crores for the year ending 31st March 2008. The Net Profit was Rs 12,321.76 crores for the same period.

Recent Spotlight Vietnam Steel Corporation (Vietnam’s largest steel company), Vietnam Cement Industries Corporation (Vicem) and Tata Steel recently signed a Joint Venture Agreement (JVA) for the proposed steel complex in Vietnam today. This 4.5 MT per year steel complex will be set up in the Vung Ang Economic Zone in Ha Tinh Province.

BANK OF INDIA

Innovatitan

“Innovation is the specific instrument of entrepreneurship. The act that endows resources with a new capacity to create wealth. wealth.”” - Peter FF.. Drucker BEGINNING WITH ONE OFFICE IN MUMBAI, WITH A PAID-UP CAPITAL OF RS.50 LAKH AND 50 EMPLOYEES, BANK OF INDIA HAS TAKEN RAPID STRIDES TOWARDS GROWTH THROUGH CONSTANT INNOVATION ; BLOSSOMING INTO A MIGHTY INSTITUTION WITH A STRONG NATIONAL PRESENCE AND SIZABLE INTERNATIONAL OPERATIONS.

A diverse group of Hindus, Muslims, Parsis, and Jews helped establish the present Bank of India in 1906. It was the first bank in India promoted by Indian interests to serve all the communities of India. At the time, banks in India were either owned by Europeans who served mainly the interests of the European merchant houses or by different communities which served the banking needs of their own community. The lead promoter of the Bank of India was Sir Sassoon J. David. The first board of directors of the bank consisted of Sir Sassoon David, Sir Cowasjee Jehangir, J. Cowasjee Jehangir, Sir Frederick Leigh Croft, Ratanjee Dadabhoy Tata, Gordhandas Khattau, Lalubhai Samaldas, Khetsety Khiasey, Ramnarain Hurnundrai, Jenarrayen Hindoomull Dani, Noordin Ebrahim Noordin.

The promoters incorporated the Bank of India on 7 September, 1906 under Act VI of 1882. It was under private ownership and control till July 1969 when it was nationalised along with 13 other banks. The Bank has 2891 branches and 89 extension counters in India spread over all states/ union territories including 137 specialised branches. These branches are controlled through 48 Zonal Offices. There are 27 branches/ offices (including three representative offices) abroad. According to T.S.Narayanasami, Chairman & Managing Director, Bank of India, the Bank came out with its maiden public issue in 1997 and followed with Qualified Institutions Placement in February 2008. “The Total number of shareholders as on 30th June 2008 is 2,29,000,” he says. While firmly adhering to a policy of prudence and caution, the Bank has been in the forefront of introducing various innovative services and systems. Business has been conducted with the successful blend of traditional values and ethics and the most modern infrastructure. The Bank has been

the first among the nationalised banks to establish a fully computerised branch and ATM facility at the Mahalaxmi Branch at Mumbai way back in 1989. The Bank is also a Founder Member of SWIFT in India. It pioneered the introduction of the Health Code System in 1982, for evaluating/ rating its credit portfolio. Bank of India is a founder member of SWIFT (Society for World-wide Inter Bank Financial Telecommunications) in India which facilitates provision of cost-effective financial processing and communication services. It was the first Indian Bank to open a branch outside the country, at London in 1946, and also the first to open a branch in Europe- Paris in 1974. The Bank has sizable presence abroad at key banking and financial centres viz. London, New York, Paris, Tokyo, Hong-Kong, and Singapore.

Financials The total income of the bank for the quarter ending 30th June 2008 was Rs 4114.74 crores as compared to Rs 3108.41 crores for the same quarter last year. The Net Profit for the quarter was Rs 561.95 crores compared to Rs 315.20 crores last year.

Recent Spotlight The Bank has also opened the first Branch of its subsidiary, Bank of India (Tanzania) Ltd at Dar-esSalaam.


Centennial Titans