Summer project on Depository Services at Dena Bank

1. Summer Internship Project NCRD’s Sterling Institute of Management Studies Div ‘A’ Ashwin R. Satra Roll No.37 Summer Project On Depository Services at Dena Bank MMS 2010-12, Semester III Faculty Guide : Prof.Rakhi Shrivastava Company Guide : Mr.Ratan K. Khanna Presented to : Prof. MayurM. & Prof. Aradhana

2. Summer Internship Project Depository Services Purpose of Project ”The purpose of this project was to understand the current Depository Services in India with special reference to Dena Bank and then suggest an improved and viable business model for the Depository department of Dena Bank” 1-21

4. Assets size of the banking industry - US$ 1.3 trillion

5. A Compound Annual Growth Rate (CAGR) of 18 per cent compared to the average GDP growth of 7.2 per cent during the last decade.

6. Nationalized banks accounted for 52.2 per cent of the aggregate deposits, with State Bank of India (SBI) and its Associates accounting for 22.1 per cent.

7. Potential to become third largest banking sector by 2050 after China & US 2-21

9. Dena Bank was nationalized in July 1969 with 13 other major banks and is now a public sector bank.

10. The logo of Dena Bank depicts Goddess Lakshmi, the Goddess of Wealth, according to Hindu mythology.

11. It was the desire of the founding fathers of the Bank that the Bank should be a symbol of prosperity for all its clients, and the logo represents this promise. 3-21

13. Dena ATM Services

14. Internet Banking

15. Dena e-Tax Pay

16. Mobile Banking

17. Phone Banking

18. Dena Alert Services

19. Inbound Remittances

20. Direct Tax Collection

21. Indirect Tax

22. Bancassurance

23. Demat Services

24. Dena BillPay

25. RTGS/NEFTDEPOSITORY SERVICES 4-21

26. “Depository Services” Introduction to Depositories Meaning Depository is used to refer to any place where something is deposited for storage or security purposes. More specifically, it can refer to a company, bank or an institution that holds and facilitates the exchange of securities. Or a depository can refer to a depository institution that is allowed to accept monetary deposits from customers. 5-21

28. Depository Participant :Intermediaries which perform action on behalf of their client are known as Depository Participants6-21

29. “Depository Services” Introduction to Depositories Bank & NSDL-An Analogy & Difference 7-21

31. Dematerialisation

32. Re-materialisation

33. Off-market Trades

34. Distribution of corporate benefits

35. Pledging and hypothecation facilities

36. Freezing/locking of investor's account

37. Stock lending and borrowing facilities

38. Settlement in dematerialised securities

39. Receipt of allotment in the dematerialised form8-21

40. “Depository Services” Depository services In Dena Bank DenaLaxmi Demat Account Dena Bank apart from normal banking services also offers you the capital market oriented product in the form of Demat account called -Dena Laxmi Demat Account. Dena Bank is Depository participant of National Securities Depository Limited (NSDL).since 1997 and is extending Depository services to the Demat Account holders of the Bank. Dena Bank provides hassle free transactions in the securities through the Dena Laxmi Demat Account . 9-21

42. Dematerialisation

43. Rematerialisation

44. Instant transfers / deliveries of shares / securities

45. Settlement of transactions done on the Stock Exchanges

46. Affecting changes in Addresses / Bank account details for the investments in various companies with a single request.

47. Pledging of Security

48. Freezing and unfreezing of account / only specific security or a specific quantity of a particular security10-21

50. Canara Bank

51. Bank of Maharashtra

52. Central Bank of India

53. Dena Bank

54. Bank of India

55. Bank of Baroda

56. Union Bank of IndiaFor the purpose of our study, top 4 public banks have been selected having depository services. I visited the following banks, referred their website etc and gathered information about their products and charges for our study. 11-21

57. “Depository Services” Competitive Benchmarking of Dena Bank with Peers Nationalized Bank 12-21

59. Capital Market Indicator

60. Approach to Ex-Customers

61. Online Trading Facility to be made available at the earliest

62. ASBA Facility to be made available

63. Improvements in Clients Delivery Instruction Slip (DIS)

64. Monthly & Quarterly Statements13-21

66. Life Insurance Portfolio

67. Non-Life Insurance Portfolio etcOn selecting specific portfolio related screen should appear, tentatively as follows: Recommendations & Suggestions 2. SystemSupport 1. Log in to www.denabank.com 14-21

68. “Depository Services” Recommendations & Suggestions 2. SystemSupport Name : AshwinSatra Client ID No. : 10073244 Portfolio Type: Equities and Equity Diversified Mutual Funds 15-21

70. Statutory requirements like necessary approval from NSDL and NCFM for employees who will have to clear some basic level examination.

71. Equity Research/ Insurance and Mutual Funds Updates to be published and made timely available to Front officers.

72. Periodical workshops by the third parties.

73. Special customer awareness camps (like ICICI Bank) for online trading, sharing research reports, detailing products of third parties which can be availed by them.16-21

75. Dedicated staff catering exclusively to the Depository products, services and customers.

76. Offering free advisory service to their customers and later adding to their business fold.17-21

78. Periodical customer awareness campaigns like seminars for nominal fee educating them about current market trends, activity in specific equities, on-line dealing and trading, etc.18-21

80. Study excludes CDSL’s role in Depository Services.

81. Small sample size i.e. only 4 banks were taken into consideration for survey.

82. Survey restricted only to nationalized bank providing depository services.

83. Difficulty in collection of the data.19-21

85. Scope for future study would be more, if study includes CDSL’s role in Depository Services.

86. Sample Size for survey purpose can be increase to at least 10 companies from different sectors.

87. Also there is further scope for conducting this study in other areas, as this study covers only limited areas.20-21

89. Doing this project was a colossal experience and in great deal I found out the importance of depositories in Indian banking sector.

90. All in all, to sum things up, this project stands out to be an ‘eye opener’ in real terms for me towards a broader vision in understanding the interdependence of the economy, banks, business and technology within the economy.21-21