Commercial banks are involved in futures, options, and other derivative instruments in two important ways. First, they design or price these derivative instruments for their clients. Second, they also use derivative instruments in managing interest rate and currency risks specifically and asset-liabilities in general. Introduction of the international dimension to bank management transforms various risk facets and their management. For instance, domestic interest rate risk of a bank may be mitigated or magnified in the presence of the currency risk it faces. Further, the economics of benefit-cost analysis regarding risk management on behalf of the bank’s clients as well as on its own account significantly changes in the presence of a bewildering array of derivative instruments available on international dimension (swaps, belong to this category). Thus, an understanding of these instruments is vital for managing operations of multinational banks.
Primarily on currency and interest rates related derivative instruments because they are widely used by multinational banks. First, differences and similarities between forward and futures contracts are discussed. Then, salient characteristics of both currency and interest rate futures contracts are described. Options and options on futures are finally explained. One major purpose is highlight linkages among futures, options, and their underlying assets. This discussion serves as a foundation for discussion of some intricate derivative instruments such as interest rate and currency swaps, where these complex instruments will be shown as a combination of the basic (option and futures) instruments.
Primarily on currency and interest rates related derivative instruments because they are widely used by multinational banks. First, differences and similarities between forward and futures contracts are discussed. Then, salient characteristics of both currency and interest rate futures contracts are described. Options and options on futures are finally explained. One major purpose is highlight linkages among futures, options, and their underlying assets. This discussion serves as a foundation for discussion of some intricate derivative instruments such as interest rate and currency swaps, where these complex instruments will be shown as a combination of the basic (option and futures) instruments.
Our first candidate is Arthur. Arthur has been working in construction for the last three years. His income is $28,000, and his credit history is good. He can put $20,000 down on a house and has an additional $10,000 in savings, but he owes $16,000 on his credit cards. His outrageous debt dates back to before he got married— when he was a bit of a free spender, if you know what I mean. Since Arthur married, he and his wife have been working hard to pay down that debt, and they’ve done a good job of building up savings.
Our second candidate is Beatrice.For the past five years, Beatrice has worked as the assistant manager at the local supermarket, where she worked her way up from a position at the checkout counter. She makes $34,000 a year. Her credit history is excellent, but she has had a hard time saving money. She has $4,500 in savings. The good news is that she has no debt at all. Her parents taught her that debt is the devil’s tool, and Beatrice believed them.
Our third candidate is Charlie. For the past seven years, Charlie has worked at the telephone company as an installer. He makes $36,000 a year. He has $24,000 in savings, of which he can use $15,000 as a down payment. He owes $8,000 in credit card debt. Charlie’s problem, however, is that his credit history is not very good. Charlie went through a period where he let his bills pile up and ignored threatening letters from creditors. As a result, hisFICO score is about 450—rather low for a home loan.
There you have ’em. Ask your children to rank the candidates in terms of who is the most credit-worthy. Your kids can look at Arthur, Beatrice, and Charlie and decide to give loans to one, two, or all of them—or none of them.
If your kids seem stumped at first, you can prompt themby asking which factors are the most important. Is a steady employment history the most significant? What about credit history? How important is income level? What about the size of the down payment? Does the debt level scare you? There are no absolute right or wrong answers. Letme explain why.
Here’s a quick history lesson. In the bad old days, even just a few years ago, the answer as to which of these three individuals would receive a home loan would be . . . none of the above. That’s right. Neither Arthur nor Beatrice nor Charlie would have gotten a loan. All of them would have been rejected—not so much because of their finances, but because of the neighborhoods in which they wanted to buy. Until 1977, banks routinely practiced something they called redlining. They would literally draw red lines on a map around neighborhoods, usually ones with large populations of people of color, they considered unworthy of home loans. Nearly all the inner cities of America were redlined by banks for decades. Redlining made it extremely difficult—if not impossible—for individuals who lived in inner-city neighborhoods to own their own homes.
This will pay benefits to injured persons for medical expenses, lost wages, substitute services (if someone is unable to take care of his or her household), and death, no matter whose fault the accident was. The protection is in effect whether a person is riding in or on your vehicle, getting in or out of it, or is struck as a pedestrian.
Medical Payments Coverage
This covers medical expenses that result from accidental injury to anyone riding in your vehicle or to anyone struck as a pedestrian.
Many states that do not have PIP have Auto Medical Payments coverage, or AMP, and some states even have both. AMP is also a first party coverage, without regard to liability, but is only subrogable in a few states, and generally optional.
AMP & PIP limits range from $1500.00 to $250,000.00 depending on the injury and the state. Claimants involved in an auto accident are wise to submit their own insurance information to their medical providers, as third party carriers are under no legal obligation to pay a claimant’s medical bills, while first party carriers are.
Third party carriers are subject to payment only after a judgement against them, and any payments prior to that are considered voluntary. Settling a claim with a third party carrier is considered a voluntary payment.
Medical Payments Coverage
This covers medical expenses that result from accidental injury to anyone riding in your vehicle or to anyone struck as a pedestrian.
Many states that do not have PIP have Auto Medical Payments coverage, or AMP, and some states even have both. AMP is also a first party coverage, without regard to liability, but is only subrogable in a few states, and generally optional.
AMP & PIP limits range from $1500.00 to $250,000.00 depending on the injury and the state. Claimants involved in an auto accident are wise to submit their own insurance information to their medical providers, as third party carriers are under no legal obligation to pay a claimant’s medical bills, while first party carriers are.
Third party carriers are subject to payment only after a judgement against them, and any payments prior to that are considered voluntary. Settling a claim with a third party carrier is considered a voluntary payment.
For a non-financial firm, the MM theory provides at least a starting point for the resource allocation process: the firm should find the net present value of the prospective real asset first as if it is being financed exclusively by stockholders; and if it is positive, then the appropriate asset financing should take advantage of existing financial market imperfections. For a financial firm or bank, such a dichotomy of investment and financing decisions creates one major problem.The bank’s assets are as much financial as its liabilities. The basic premise for the existence of banks is rooted in financial market inefficiencies, and this premise is at odds with the MM theory. Indeed, such inefficiencies signify a joint consideration of investment and financing decisions, and the computation of the cost of capital (as suggested by, for instance, MM) as a cutoff rate becomes less meaningful for a bank than for the non-financial firm.1 Furthermore, any investment project cannot be considered in isolation or by itself. Instead, its impact on the owners must be analyzed in the context of other investments of the firm.
Bank management practice that focuses on joint consideration of (a) investment-financing decisions, and (b) an investment proposal with existing investments (rather than the proposal in itself ) is consistent with the above conceptual implications. Hence, concentrates on bank management practice that emphasizes asset-liability management, rather than consideration of a single project. In turn, the asset-liability management practice has highlighted the risk (rather than return) dimension.2 Its objective has been to optimize three components of risk: liquidity risk, credit risk, and interest rate risk. Liquidity risk is typically monitored by liability and liquidity managers. Similarly, most banks delegate the management of credit risk to the bank’s loan and investment centers; credit risk, specifically pertaining to the international dimension. Hence we concentrate here on the interest rate risk dimension as it relates to asset-liability management.3 One risk typically ignored in the domestic, single-currency dimension is the foreign exchange risk. Currency risk is intimately interrelated to the interest rate risk.Therefore, for expository ease, we will first focus on a single-currency scenario, and later modify the analysis to include the multi-currency consideration.
Bank management practice that focuses on joint consideration of (a) investment-financing decisions, and (b) an investment proposal with existing investments (rather than the proposal in itself ) is consistent with the above conceptual implications. Hence, concentrates on bank management practice that emphasizes asset-liability management, rather than consideration of a single project. In turn, the asset-liability management practice has highlighted the risk (rather than return) dimension.2 Its objective has been to optimize three components of risk: liquidity risk, credit risk, and interest rate risk. Liquidity risk is typically monitored by liability and liquidity managers. Similarly, most banks delegate the management of credit risk to the bank’s loan and investment centers; credit risk, specifically pertaining to the international dimension. Hence we concentrate here on the interest rate risk dimension as it relates to asset-liability management.3 One risk typically ignored in the domestic, single-currency dimension is the foreign exchange risk. Currency risk is intimately interrelated to the interest rate risk.Therefore, for expository ease, we will first focus on a single-currency scenario, and later modify the analysis to include the multi-currency consideration.
Letters of credit (LC), import bills for collection, shipping guarantees, import financing, performance bonds, export LC advising, LC safekeeping, LC confirmation, LC checking and negotiation, pre-shipment export finance, export bills for collections, invoice financing, and all the relevant document preparation.
Despite this focus on the LC, over the years the term trade finance has been shifting away from this sometimes cumbersome method of conducting business. It is now estimated that over 80% of global trade is conducted on an open account basis.
Led by large corporates, this form of trade saves costs and time and so has been adopted by smaller corporates as they become more comfortable with their buyer and supplier relationships. Open account transactions can be described as ‘buy now, pay later’ and are more like regular payments for a continuing flow of goods rather than specific transactions. This is much cheaper for corporates.
In response to this development, the organisation SWIFT launched the TSU (trade services utility), a collaborative centralised data matching utility, which allows banks to build products around its core functionality to improve the speed and flow of open account trade. This is helping banks re-intermediate themselves into these trade flows.
While volumes of LCs have remained flat in recent years, their value actually increased and they remain an essential part of emerging market trade and trade in countries where exchange controls are in force. This increase in value is also a reflection of the commodity price boom of 2007/08.
Factoring & Forfaiting
Factoring, or invoice discounting, receivables factoring or debtor financing, is where a company buys a debt or invoice from another company. In this purchase, accounts receivable are discounted in order to allow the buyer to make a profit upon the settlement of the debt. Essentially factoring transfers the ownership of accounts to another party that then chases up the debt.
Factoring therefore relieves the first party of a debt for less than the total amount providing them with working capital to continue trading, while the buyer, or factor, chases up the debt for the full amount and profits when it is paid. The factor is required to pay additional fees, typically a small percentage, once the debt has been settled. The factor may also offer a discount to the indebted party.
Forfaiting (note the spelling) is the purchase of an exporter's receivables – the amount importers owe the exporter – at a discount by paying cash. The purchaser of the receivables, or forfaiter, must now be paid by the importer to settle the debt.
As the receivables are usually guaranteed by the importer's bank, the forfaiter frees the exporter from the risk of non-payment by the importer. The receivables have then become a form of debt instrument that can be sold on the secondary market as bills of exchange or promissory notes.
Despite this focus on the LC, over the years the term trade finance has been shifting away from this sometimes cumbersome method of conducting business. It is now estimated that over 80% of global trade is conducted on an open account basis.
Led by large corporates, this form of trade saves costs and time and so has been adopted by smaller corporates as they become more comfortable with their buyer and supplier relationships. Open account transactions can be described as ‘buy now, pay later’ and are more like regular payments for a continuing flow of goods rather than specific transactions. This is much cheaper for corporates.
In response to this development, the organisation SWIFT launched the TSU (trade services utility), a collaborative centralised data matching utility, which allows banks to build products around its core functionality to improve the speed and flow of open account trade. This is helping banks re-intermediate themselves into these trade flows.
While volumes of LCs have remained flat in recent years, their value actually increased and they remain an essential part of emerging market trade and trade in countries where exchange controls are in force. This increase in value is also a reflection of the commodity price boom of 2007/08.
Factoring & Forfaiting
Factoring, or invoice discounting, receivables factoring or debtor financing, is where a company buys a debt or invoice from another company. In this purchase, accounts receivable are discounted in order to allow the buyer to make a profit upon the settlement of the debt. Essentially factoring transfers the ownership of accounts to another party that then chases up the debt.
Factoring therefore relieves the first party of a debt for less than the total amount providing them with working capital to continue trading, while the buyer, or factor, chases up the debt for the full amount and profits when it is paid. The factor is required to pay additional fees, typically a small percentage, once the debt has been settled. The factor may also offer a discount to the indebted party.
Forfaiting (note the spelling) is the purchase of an exporter's receivables – the amount importers owe the exporter – at a discount by paying cash. The purchaser of the receivables, or forfaiter, must now be paid by the importer to settle the debt.
As the receivables are usually guaranteed by the importer's bank, the forfaiter frees the exporter from the risk of non-payment by the importer. The receivables have then become a form of debt instrument that can be sold on the secondary market as bills of exchange or promissory notes.
Personal Loan, Loan for Individual Person, Personal Loan Eligibility, Free Personal Loan Eligibility.
Personal loans are provided by various banks and non banking financial companies (NBFCs). There are various factors which effect the your personal loan eligibility. Below mentioned are some of the few factors which the bank or the NBFC will consider while they decide on your personal loan eligibility.
Financial Background This is the most important parameter that determines if you are eligible for a personal loan and also the quantum of personal loan you are eligible for. It will help the bank understand how well you can pay back your loan. Every bank will have a minimum level of income to be eligible for a personal loan.
Credit History This will help the bank ascertain your track record for payment of EMI of any loan or the payment of the credit card bills. In case you have paid all your previous EMIs and credit card bills on time, chances of your getting the loan is higher.
Company in which you are employed Personal loan eligibility may depend upon the company you are working for. In case your company is a public ltd or among the A class companies, which the banks call them as, the chances of you getting a loan becomes very easy. If you are working for a B class company, then getting a personal loan may be difficult for you or it maybe costlier also compared to a person who is working in an A class company. Which means that if you are working for a company which belongs to the A class according to the bank, then the personal loan rate would be comparatively lower to a person who belongs to a B class company.
Any other loans you may be holding In case you are having any other loan at the given point of time, then your eligibility for personal loan may go down as you are already paying towards EMI of the previous loan and the income in your hand would be lower compared to a case where you are not paying any EMI.
Financial Background This is the most important parameter that determines if you are eligible for a personal loan and also the quantum of personal loan you are eligible for. It will help the bank understand how well you can pay back your loan. Every bank will have a minimum level of income to be eligible for a personal loan.
Credit History This will help the bank ascertain your track record for payment of EMI of any loan or the payment of the credit card bills. In case you have paid all your previous EMIs and credit card bills on time, chances of your getting the loan is higher.
Company in which you are employed Personal loan eligibility may depend upon the company you are working for. In case your company is a public ltd or among the A class companies, which the banks call them as, the chances of you getting a loan becomes very easy. If you are working for a B class company, then getting a personal loan may be difficult for you or it maybe costlier also compared to a person who is working in an A class company. Which means that if you are working for a company which belongs to the A class according to the bank, then the personal loan rate would be comparatively lower to a person who belongs to a B class company.
Any other loans you may be holding In case you are having any other loan at the given point of time, then your eligibility for personal loan may go down as you are already paying towards EMI of the previous loan and the income in your hand would be lower compared to a case where you are not paying any EMI.
In case you are self employed, you can use this calculator to find out your personal loan eligibility based upon certain factors.
The international monetary policies of the New Deal may be divided into two decisive and determining actions, one at the beginning of the New Deal and the other at end. The first was the decision, in early 1933, to opt for domestic inflation and monetary nationalism, a course that helped steer the entire world onto a similar path during the remainder of the decade. The second was the thrust, during World War to reconstitute an international monetary order, this time built on the dollar as the world’s “key” and crucial currency. If we wished to use lurid terminology, we might call these a decision for dollar nationalism and dollar imperialism respectively.
The gold standard in the prewar era was never “pure,” no more than was laissez-faire in general. Every major country, except the United States, had central banks which tried their best to inflate and manipulate the currency. But the system was such that this intervention could only operate within narrow limits. If one country inflated its currency, the inflation in that country would cause the banks to lose gold to other nations, and consequently the banks, private and central, would before long be brought to heel.
The advent of the World War disrupted and rended this economic idyll, and it was never to return. In the first place, all of the major countries financed the massive war effort through an equally massive inflation, which meant that every country except the United States, even including Great Britain, was forced to go off the gold standard, since they could no longer hope to redeem their currency obligations in gold. The international order not only was sundered by the war, but also split into numerous separate, competing, and warring currencies, whose inflation was no longer subject to the gold restraint. In addition, the various governments engaged in rigorous exchange control, fixing exchange rates and prohibiting outflows of gold; monetary warfare paralleled the broader economic and military conflict.
The gold standard in the prewar era was never “pure,” no more than was laissez-faire in general. Every major country, except the United States, had central banks which tried their best to inflate and manipulate the currency. But the system was such that this intervention could only operate within narrow limits. If one country inflated its currency, the inflation in that country would cause the banks to lose gold to other nations, and consequently the banks, private and central, would before long be brought to heel.
The advent of the World War disrupted and rended this economic idyll, and it was never to return. In the first place, all of the major countries financed the massive war effort through an equally massive inflation, which meant that every country except the United States, even including Great Britain, was forced to go off the gold standard, since they could no longer hope to redeem their currency obligations in gold. The international order not only was sundered by the war, but also split into numerous separate, competing, and warring currencies, whose inflation was no longer subject to the gold restraint. In addition, the various governments engaged in rigorous exchange control, fixing exchange rates and prohibiting outflows of gold; monetary warfare paralleled the broader economic and military conflict.
Conventional approach envisages the role of a commercial bank as a money lender, which funds the loan with deposits. In the process, the bank transforms highly liquid deposits (presumably short term) into illiquid loans with long-term maturity. Thus the commercial bank performs a liquidity creation or asset transformation function. An investment bank, on the other hand, is a financial intermediary that performs primarily the brokerage function of bringing together buyers and sellers with complimentary needs. It thus reduces the search cost for market participants.
First, the discernible trend toward deregulation of commercial banks as a result of the demise of the Glass–Steagall Act has suffered a setback due to scandals and bankruptcies involving firms such as Enron and WorldCom. A striking case illustrating potential or de facto re-regulation is highlighted by a recent series of judgments against leading banks (such as Citigroup, Credit Suisse First Boston, Goldman Sachs, Morgan Stanley, Lehman Brothers, Deutsche Bank, and UBS) that have agreed to the “Chinese wall” separation between underwriting activities and research activities (typically affiliated with the brokerage function) in an investment bank.
Second, the phenomenon of mergers and acquisitions (M&A) between investment banks and commercial banks has led to the daunting task of integrating these banking activities – a task that has partially emanated from differing, if not incompatible, cultural orientation of these two branches of banking activities.
Finally, integration of these banking activities has been confined to a small, albeit significant, segment of the banking industry. The remainder of the firms in the industry, both commercial and investment banks, face the urgent task of defining their niche for survival and prosperity.
First, the discernible trend toward deregulation of commercial banks as a result of the demise of the Glass–Steagall Act has suffered a setback due to scandals and bankruptcies involving firms such as Enron and WorldCom. A striking case illustrating potential or de facto re-regulation is highlighted by a recent series of judgments against leading banks (such as Citigroup, Credit Suisse First Boston, Goldman Sachs, Morgan Stanley, Lehman Brothers, Deutsche Bank, and UBS) that have agreed to the “Chinese wall” separation between underwriting activities and research activities (typically affiliated with the brokerage function) in an investment bank.
Second, the phenomenon of mergers and acquisitions (M&A) between investment banks and commercial banks has led to the daunting task of integrating these banking activities – a task that has partially emanated from differing, if not incompatible, cultural orientation of these two branches of banking activities.
Finally, integration of these banking activities has been confined to a small, albeit significant, segment of the banking industry. The remainder of the firms in the industry, both commercial and investment banks, face the urgent task of defining their niche for survival and prosperity.
For many of us, financial planning means trying not to have too much month at the end of the money. In this chapter, I’d like to explore with you some ways to teach your high school kids about moving forward financially, especially when they have their own small income.
Better yet, find a way for them to feel that they get to do this instead of feeling that they’ve got to do this. You want to teach your kids that having money is a privilege, no matter how much or how little they have. Money is a form of power, but it needs to be treated properly or it will just go somewhere else. Teach your kids that while most people are vague about their finances, that’s not how it works in your household. You can even attach a reward to this new responsibility. For example, put a little bonus in their allowance if they write down their spending. If they don’t write down their spending, then it’s up to you to think of some appropriate loss that they must suffer as a result—in addition to the loss in financial knowledge they’ll already suffer. The key is to be fair and proportionate in terms of both the rewards and the consequences, and then keep your word.
Foreign trade financing is one major activity pursued by banks, small and large.Various forms of guarantees, including the letter of credit, facilitate foreign trade for enabling exporters to minimize the risk of payment and importers to minimize the risk of performance. Although financing is not a necessary condition for providing these guarantees, financing is usually a part of the package.
In addition to trade financing, banks also provide or convert foreign exchange for trade participants. Participants may also require arrangements for “local” borrowing or hedging the currency exposure of the trade transactions. Firms with foreign operations would require these services on an ongoing basis and on a larger scale.
The term “local” here connotes not only the foreign location where the participant has the business interest and is subject to government regulations but also the unregulated, offshore markets. Offshore markets are commonly called “Euro”-markets. One segment of the Euro markets is the Euro currencies market where spot currency transactions as well as trading in short- and medium-term funds and instruments are undertaken.The “interbank” market, where banks conduct business among themselves, significantly overlaps the Euro markets; hence, the term “interbank” is often used interchangeably with “Euro-” or “Euro currencies” markets.13 Euro currencies markets are notable in two respects: (a) over 80 percent of foreign exchange trading takes place in these markets; and (b) given their informational and cost efficiencies, these markets greatly facilitate banks’ asset-liability management to attain targets of liquidity and interest rate exposures.
In addition to trade financing, banks also provide or convert foreign exchange for trade participants. Participants may also require arrangements for “local” borrowing or hedging the currency exposure of the trade transactions. Firms with foreign operations would require these services on an ongoing basis and on a larger scale.
The term “local” here connotes not only the foreign location where the participant has the business interest and is subject to government regulations but also the unregulated, offshore markets. Offshore markets are commonly called “Euro”-markets. One segment of the Euro markets is the Euro currencies market where spot currency transactions as well as trading in short- and medium-term funds and instruments are undertaken.The “interbank” market, where banks conduct business among themselves, significantly overlaps the Euro markets; hence, the term “interbank” is often used interchangeably with “Euro-” or “Euro currencies” markets.13 Euro currencies markets are notable in two respects: (a) over 80 percent of foreign exchange trading takes place in these markets; and (b) given their informational and cost efficiencies, these markets greatly facilitate banks’ asset-liability management to attain targets of liquidity and interest rate exposures.
In the past, single premium life insurance was a very popular tax-deferred savings vehicle. That has drastically changed as a result of tax law changes.
However, single premium life still may be useful as a tax-deferred accumulation vehicle with some death benefits. Contact your insurance agent about the tax law consequences of this policy and whether it meets your insurance needs.
The insurance industry is constantly changing in response to tax law revisions. New products will be created to reflect those revisions.
If you want to research all types of policies on the market, contact your insurance agent. This information only provides a brief summary of the most popular types of insurance policies available.
However, single premium life still may be useful as a tax-deferred accumulation vehicle with some death benefits. Contact your insurance agent about the tax law consequences of this policy and whether it meets your insurance needs.
The insurance industry is constantly changing in response to tax law revisions. New products will be created to reflect those revisions.
If you want to research all types of policies on the market, contact your insurance agent. This information only provides a brief summary of the most popular types of insurance policies available.
Competitive financial markets, irrespective of competitiveness of goods markets but ensuring nonetheless competitive foreign exchange markets, make banks’ intermediary role less relevant, if not redundant. Due to equal access to relevant information and absence of any roadblocks1 in entering or exiting financial markets, market participants can engage in a tradeoff between current and future consumption patterns without help from banks. Similarly, it is doubtful whether banks per se are essential to provide an effective conduit for the government in carrying out the monetary policy measures. Although competitive financial markets in the ideal form are nowhere near reality currently (or, for that matter, in the foreseeable future), imperfections in financial markets are not static in nature. In fact, many of them tend to atrophy over time and are replaced by new ones, as the last quarter of the twentieth century has witnessed in the USA and elsewhere in the world. A gradual birth or removal of and transformation in imperfections in financial markets has thus changed the distance between perfect and imperfect financial markets, affecting thereby the role of banks in these markets.
This is the essence of sound strategy formulation and implementation. Students of strategy have debated whether the focus should be on analysis of external environment or core strength of the firm. In the case of a commercial bank, this debate will have to take a back seat since both these aspects are equally crucial for strategy formulation in a global context.
This is the essence of sound strategy formulation and implementation. Students of strategy have debated whether the focus should be on analysis of external environment or core strength of the firm. In the case of a commercial bank, this debate will have to take a back seat since both these aspects are equally crucial for strategy formulation in a global context.
Edward J. Brown III is president of Bank of America Global Corporate and Investment Banking, responsible for investment banking, corporate banking, capital markets, financial advisory, trade finance, leasing and e−Commerce services. He is also a member of the Bank of America Operating Committee. Brown joined the bank in 1972 as a credit analyst in Charlotte and served as an account officer in the Southeastern Department. He was named senior vice president and director of the Southern Department in 1979 and Specialized Industries division executive in 1980. Brown transferred to Tampa where he was named Tampa Bay area executive in 1982 and Tampa Bay Region executive in 1984. He returned to Charlotte as Middle Market Group executive in 1985 and served in this position until he was named president of Corporate Banking in 1988. He was named president of Global Finance in 1997 and president of Global Capital Raising and Global Capital Markets in 1998. A native of Savannah, Ga., Brown earned a bachelor's degree in industrial management from Georgia Institute of Technology. He earned a master's degree in finance from Harvard University. Brown is a member of the PGA Tour Golf Course Properties advisory board and a trustee of the Georgia Tech advisory board. He is a member of the Carolinas HealthCare System board of advisors, the 1999 U.S. Open President's Council and co−chair of the Georgia Tech Regional Development Council.
David C. Darnell is president of Commercial and Real Estate Banking for Bank of America. He leads national sales for the company's Commercial Banking, Real Estate Banking and Business Credit operations. Before assuming his current position in 2001, he led the bank's consumer and commercial banking operations in the central region of the United States. Darnell also served as executive vice president and Commercial Division executive for Bank of America in Florida. Darnell is a member of the Bank of America Management Operating Committee. Based in St. Louis, Darnell has been actively involved in the community, particularly in efforts to revitalize downtown St. Louis, where the bank has a major presence. He is a member of the boards of the St. Louis Regional Commerce and Growth Association; St. Louis Downtown Partnership, Inc.; Civic Progress; St. Louis Science Center; United Way of Greater St. Louis; Boy Scouts of America Greater St. Louis Area Council; and the Variety Club. He also is a trustee of St. Louis University and serves on the national board of the Museum of Science and Industry Foundation. Darnell received an MBA from the University of North Carolina and an undergraduate degree in business from Wake Forest University in Winston−Salem, N.C.
Richard M. DeMartini is president of the Bank of America Asset Management Group. This group provides investment management services to individuals and institutions through Banc of America Capital Management, Inc., a full range of financial services, including fiduciary and credit services, to high−net−worth individuals and families through the Private Bank, Trust Company and Private Client Services, and retail brokerage services through Banc of America Investment Services, Inc. He also is a member of the Bank of America Risk and Capital and Operating Committees. DeMartini most recently served as chairman and chief executive officer of the International Private Client Group at Morgan Stanley Dean Witter, a position that encompassed all of the firm's activities relating to the gathering of investment assets and sale of securities to individual investors internationally. He also was a member of the Morgan Stanley Dean Witter Management Committee. His career at Morgan Stanley Dean Witter spanned more than 26 years and included roles as president of Individual Asset Management and president of Dean Witter & Company, Inc. DeMartini has served as chairman of the board of the Nasdaq Stock Market, Inc. and vice chairman of the board of the National Association of Securities Dealers, Inc. He currently serves as a trustee of the Cancer Research Institute and as a director of Graham Windham, New York's oldest social service agency. DeMartini is a graduate of San Diego State University with a bachelor's degree in marketing.
Today, health insurance is a basic need. Few families can afford the cost of even one single hospital stay. So, medical insurance represents good, logical planning for most of us. It also makes good health care possible for families that otherwise couldn’t afford it.
Health insurance is too complex to be discussed thoroughly in this pamphlet. But we can provide brief and general information to help you determine what type of coverage fits your needs.
There are two basic types of health insurance:
1. Basic coverage
2. Major medical.
Basic coverage includes hospital, surgical, and general medical expenses. Each type of basic insurance covers different health care expenses. The benefits paid are limited to a certain amount.
Major medical and comprehensive insurance offer broad coverage and high maximum benefits. There is usually a deductible paid by the insured.
Following is a more detailed look at the types of health insurance. Hospitalization—Covers daily and miscellaneous expenses when a person is in the hospital. Daily expenses include room and board and nursing charges. Miscellaneous expenses cover services such as X rays, drugs, lab examinations, dressings, and physical therapy.
Surgical expense—Covers fees for operations performed in or out of the hospital. Some policies pay only a maximum amount, which is based on a “relative value table.” However, if you have a preferred policy, it will pay according to the usual, customary, and reasonable expense. Surgeons charge different rates. Your policy should pay the rates charged in your community.
General medical—Covers any doctor’s visits in or out of the hospital that do not involve surgery. Diagnostic and laboratory tests also may be included. A general medical policy is limited. Find out how much it pays per visit, how many visits it covers, and whether the policy covers house calls and office visits.
Major medical—Pays a major share of treatment costs. Basically, it is designed to cover the huge expense of a catastrophic illness. It includes hospital, surgical, and other medical treatment not covered by basic policies. A major medical policy normally covers a percentage (70 to 90) of all expenses after you pay a deductible. The deductible is the amount of medical expenses you must pay before your insurance company starts paying. The remaining 10 to 30 percent of the expenses are paid by you. This is commonly called coinsurance, because you help pay the bill. This should encourage you to keep costs at a minimum.
Health insurance is too complex to be discussed thoroughly in this pamphlet. But we can provide brief and general information to help you determine what type of coverage fits your needs.
There are two basic types of health insurance:
1. Basic coverage
2. Major medical.
Basic coverage includes hospital, surgical, and general medical expenses. Each type of basic insurance covers different health care expenses. The benefits paid are limited to a certain amount.
Major medical and comprehensive insurance offer broad coverage and high maximum benefits. There is usually a deductible paid by the insured.
Following is a more detailed look at the types of health insurance. Hospitalization—Covers daily and miscellaneous expenses when a person is in the hospital. Daily expenses include room and board and nursing charges. Miscellaneous expenses cover services such as X rays, drugs, lab examinations, dressings, and physical therapy.
Surgical expense—Covers fees for operations performed in or out of the hospital. Some policies pay only a maximum amount, which is based on a “relative value table.” However, if you have a preferred policy, it will pay according to the usual, customary, and reasonable expense. Surgeons charge different rates. Your policy should pay the rates charged in your community.
General medical—Covers any doctor’s visits in or out of the hospital that do not involve surgery. Diagnostic and laboratory tests also may be included. A general medical policy is limited. Find out how much it pays per visit, how many visits it covers, and whether the policy covers house calls and office visits.
Major medical—Pays a major share of treatment costs. Basically, it is designed to cover the huge expense of a catastrophic illness. It includes hospital, surgical, and other medical treatment not covered by basic policies. A major medical policy normally covers a percentage (70 to 90) of all expenses after you pay a deductible. The deductible is the amount of medical expenses you must pay before your insurance company starts paying. The remaining 10 to 30 percent of the expenses are paid by you. This is commonly called coinsurance, because you help pay the bill. This should encourage you to keep costs at a minimum.
James R. Palermo is Management Services executive for Bank of America. His areas of responsibility include Corporate Real Estate and Corporate Security. He is an executive vice president. Palermo joined Bank of America in 1979 as a purchasing manager. During his career with Bank of America, he has managed General and Real Estate Services functions in various departments, divisions and group assignments. Palermo is chairman of Charlotte Center City Partners and is immediate past president of the Charlotte Arts & Science Council. He also chairs the Friends of the Fourth Ward and is known as the "unofficial mayor of Fourth Ward." He is a member of the board of trustees for the North Carolina Medical Foundation, Belmont Abbey College and Retinitis Pigmentosis Foundation. He is an honorary member of Beta Gamma Sigma at Clemson University. A native of Dunkirk, N,Y., Palermo earned a bachelor's degree from Canisius College, Buffalo, N.Y. Palermo and his wife Sharron have an adult son and daughter.
McGee joined Bank of America in 1990 and for six years led its California Consumer Bank. From 1996 to 1998, he ran the company's technology and operations group. In July 1998, he was named President, Bank of America Southern California. McGee was appointed to his position as President of Bank of America California in August 2000 and assumed additional responsibility as President of Bank of America National Consumer Bank in August 2001. The 48-year-old bank executive is active in civic affairs, serving on the board of the San Francisco Museum of Modern Art, chairman of the United Way of Greater Los Angeles, and vice chairman of the Town Hall Los Angeles. McGee was a two-term member of the Federal Reserve Bank of San Francisco board of directors. McGee also has a personal interest in education. In 1999, he joined the effort to bring about fiscal reform in California's public schools, and now serves as chairman of the board of trustees of the University of San Diego and on the board of the Anderson School at UCLA. He is past chairman of Junior Achievement of Southern California. A native of Ireland, McGee has lived in California nearly all of his life and speaks Spanish fluently. He earned a bachelor's degree from the University of San Diego, a master's degree in business adminis- tration from Pepperdine University and a law degree from Loyola Law School. McGee and his family reside in Pasadena.
Types of Loan
Bank loans are an excellent source of finance for short-term and long-term credit needs. Borrowers typically qualify for bank loans on the basis of their creditworthiness. Most lenders fix interest rates on the basis of the borrower’s credit rating. A higher credit rating is demonstrative of a borrower’s sound financial standing, which enables lock-in at a lower interest rate.
Bank loans are an excellent source of finance for short-term and long-term credit needs. Borrowers typically qualify for bank loans on the basis of their creditworthiness. Most lenders fix interest rates on the basis of the borrower’s credit rating. A higher credit rating is demonstrative of a borrower’s sound financial standing, which enables lock-in at a lower interest rate.
The scope and coverage of bank loans vary from lender to lender. Most lenders have strict terms governing the loan proceeds. Depending on need, borrowers can consider the following dedicated loans:
Business Loans: These loans may be long-term for funding asset procurement or short-term for financing working capital requirements. Startup entrepreneurs may be required to offer collateral. Moreover, borrowers are asked to present a business plan to become eligible for such loans.
Student Loans: These loans are intended for funding higher education in the absence of scholarships and grants. Initially, student loans only covered tuition. Currently, education loans cover other expenses pertinent to a college education, including accommodation, books and supplies. Student loans in the US are offered by private financial institutions, as well as the US federal government. The latter accompanies lower interest rates and flexible repayment terms.
Home Loans: These are long-term loans, with repayment periods as high as 30 years. The interest rate on such loans may be fixed or adjustable, varying according to the financial market. A borrower may also opt for balloon rate home loans, where interest rates are very low for 7-10 years of the loan duration, after which they have to repay the entire loan balance at once.
Car Loans: These loans may be acquired to purchase new or used cars. The average payment duration on a car loan is usually five years. Most car loans are unsecured, since the vehicle itself is put up as collateral and may be repossessed should the borrower fail to meet loan payments.
Finally, one may consider applying for a cash loan, if they do not fit into the following categories. However, note that cash loans have extremely high interest rates and must only be used as a last resort to fund short-term credit needs.
Insurance is something that almost all of us will need sometime, and it is worth understanding it before buying it.
Various types of insurance include vehicle insurance, which includes auto, motorcycle, and boat insurance, health insurance, life insurance, home insurance, travel insurance, personal property insurance, keyman insurance, dental insurance, rental insurance, and more.
Often, insurance is required - especially in the cases of motor insurance. Other times, it is a safeguard.
Insurance is a form of risk-management which spreads risk of many people in exchange for small payments from each. Specifically, insurance transfers some type of risk (accident, theft, natural disaster, illness, etc) from one person or group to a more financially-sound entity in exchange for a payment (also known as an insurance premium). Premiums are often annual or monthly, but depending on the type of insurance they can be at other intervals.
For example, a consumer can pay a certain amount to an insurer such as Motley Fool each year to insure that person's car. This sum represents the insurance company's assessment of the likelihood that the car will be damaged or wrecked. These data are normally taken from historical figures relating to the age, sex, profession, driving record, and accident history of the insured, as well as statistics concerning make and model of the car and its accident record, as well as the engine size, number of passengers, and even color of the vehicle.
Statistically, if the make and model of the vehicle in question, and/or its driver have been in numerous accidents, the insurance company will charge a higher premium in order to hedge expected losses. As the risk increases, so too do the premiums. In fact, sometimes, insurance companies will not even insure certain people and/or vehicles as the chance of them having to make a payout (in the event of an accident) will be almost guaranteed.
Types of Insurance
1.Motor insurance
This includes automobile, truck, motorcycle, aircraft, boat, or any other form of motorized transportation. It is perhaps the most common type of insurance, and is required by law in many countries.
Motor insurance covers the insured party against financial loss that he may incur to repair his vehicle or a third party’s in the event of an accident. In return for annual or semi-annual premiums, the insurance company is bound to pay any losses as described in the policy. Such a policy may include property, liability or third party, and medical coverage.
Property coverage insures damage to or theft of a vehicle; liability covers bodily injury or property damage that may occur as a result of the insured’s actions, and medical coverage pays any fees necessary for bodily injuries, rehabilitation and in some cases foregone wages and funeral costs.
In many countries, all of these types of automovile insurance are required of vehicle owners. In some countries, or states, only third party is required. However, in the case of new vehicles, any banks which may be financing the vehicle may require full insurance as a condition of financing.
If you have a larger vehicle, take a look at Autonet Van Insurance.
2.Health insurance
Most developed nations have government-funded health care which means that most or all citizens have access to medical facilities and treatment, as well as health insurance.
For example, the National health Service (NHS) in the United Kingdom pays for citizens’ medical needs. However, in the US, there is no government-funded health policy - whether for insurance or treatment. As a result, US citizens and residents must be insured or risk facing astronomical medical bills, garnishing of wages, and bankruptcy. Often, medical insurance (both health and dental) is included in employee benefit packages in the US and other countries. Nevertheless, the issue of affordable health insurance and treatment in the US is one of the most controversial and heated topics, as many cannot afford either. If you live in a country without comprehensive national health care, then low cost health insurance is a vital requirement.
3.Disability insurance
This form of insurance protects workers from injuries and illnesses which prevent them from doing their jobs. It can pay for existing commitments the policyholders may have such as outstanding bills, mortgages, utilities, and more.
Workers’ compensation is common in the US, and pays a worker his wages and medical expenses in the event of an injury on the job.
Permanent disability which prevents a worker from ever working again is covered by total permanent disability insurance. This provides the disabled employee with benefits for the rest of his or her life, or according to the terms specified in the policy. Companies can purchase a similar type of insurance, called, disability overhead insurance. This pays for ongoing overhead costs of a business while the owners are not able to work.
A Catastrophic Health Insurance plan, also known as a high deductible health plan, is good to have for those who prefer to pay lower monthly premiums. If your plan is eligible for a Health Savings Account, you can use those funds to pay the deductible and out-of-pocket expenses which saves you money in the long run.
4.Property insurance
This type of insurance typically covers things like homes, machinery, crops, valuable goods, shipped cargo, rented property (homes or apartments), and more.
It can cover damages as a result of various activities including acts of God (earthquakes, floods, storms, hurricanes, etc), vandalism, terrorism, fraud, and more.
5.Liability insurance
This covers negligent acts of an insured party with reference to a vehicle or a home. It protects the insured against legal claims and indemnification.
There are various types of liability insurance such as professional indemnity insurance Environmental liability insurance and Prize indemnity insurance .
Professional indemnity insurance protects employees from malpractice suits (as in the medical profession), errors and omissions (by appraisers, home inspectors, realtors, insurance agents, notaries, and others), and other acts of unintentional workplace negligence.
6.Credit insurance
This is taken by lenders who need coverage against the people that have credit with them (borrow money). In the event of their inability to pay it back (usually due to unemployment, disability, or death), this insurance protects the lender.
There are many other kinds of insuance, and even each of the major categories mentioned above has dozens of variations and types. They differ depending on the markets, the understanding of risk and availability of historical data, government regulation and law, cultural perceptions and expectations, and more.
7.Travel insurance
Travel insurance covers financial losses caused by trips abroad. Depending on the policy in question, in may cover lost luggage, theft of personal possessions, medical costs and delayed flights.
The internet has become an extremely popular means to find cheap holiday insurance.
* Never email your credit card details to anyone. Remember when your mother used to tell you don't write down anything you wouldn't want the whole city to read?
* The same goes for your credit card details. A merchant who requests that you email your credit card number should make you instantly suspicious as they can easily set up an online payment system through their website, or a secure PayPal account.
* Secondly, there are very sophisticated programs which scan emails for credit card numbers. These programs can even detect partial credit card numbers sent in different emails so there is no safe way to email your credit card details.
* Instead, simply call or fax the details through. Also remember that no bank will ever email you asking you to send them your account details or credit card number, so beware, this is a scam.
* Look for Visa and MasterCard verifications. Both Visa and MasterCard have recently implemented a new layer of security for their credit card holders wanting to shop online.
* Visa has introduced the Verified by Visa system and MasterCard, the SecureCode. When it comes to Visa, the issuer of your Visa card can help you set up a unique Verified by Visa password.
* Once activated, this will protect you at participating online stores. For MasterCard, you can sign up for a SecureCode from your financial institution.
* This is a unique code that is known to only you and your bank, and will also protect you when shopping. Lastly, use your common sense.
Best online trading among the leading online trading portals can be said of the Geojit Financial Services Ltd. or also known as Geojit.
Geojit Financial Services Ltd. is a charter member of the Financial Planning Standards Board of India and is one of the largest Depository Participant brokers in the country. In order to add on their operational effectiveness and daily operations they started their online portal, which is said to be the Best online trading in India. Geojit Financial Services Ltd is a member broker of the stock exchange houses NSE and BSE, having a large network of 400 branches in India and abroad that deals with equity trading services. Along with the successful offline trading services, Geojit also provides theBest online trading services. The automated online trading services are connected with five banks like Federal Bank, HDFC Bank, UTI Bank, ICICI Bank and Citibank, facilitating fund transfer and payments.
The online trading of the Geojit is so far the Best online trading system, delivering services its retail customer base of more than 5,00,000 accounts.Geojit has a network of branches, Internet Trading systems and Tele trading centres encompassing cities, suburbs, and small and mid-sized towns. The hi-tech network consisting of VSATs, MPLS, leased lines and ISDN lines from multiple service providers have played an important role in the process of making Geojit Financial Services Ltd. the Best online trading. Other significant features are like the clearing and settlement system, risk management and depository systems, all of which are managed centrally. The need of the individual investors is catered by the Geojit's retail spread and the research desk sends out SMS alerts, market pointers, research reports, and stock recommendations.
It is for all these products as provided by the Geojit Financial Services Ltd. that the investors can get the Best online trading services for a convenient, cost effective and speedy transaction of shares.
Geojit Financial Services Ltd. is a charter member of the Financial Planning Standards Board of India and is one of the largest Depository Participant brokers in the country. In order to add on their operational effectiveness and daily operations they started their online portal, which is said to be the Best online trading in India. Geojit Financial Services Ltd is a member broker of the stock exchange houses NSE and BSE, having a large network of 400 branches in India and abroad that deals with equity trading services. Along with the successful offline trading services, Geojit also provides theBest online trading services. The automated online trading services are connected with five banks like Federal Bank, HDFC Bank, UTI Bank, ICICI Bank and Citibank, facilitating fund transfer and payments.
The online trading of the Geojit is so far the Best online trading system, delivering services its retail customer base of more than 5,00,000 accounts.Geojit has a network of branches, Internet Trading systems and Tele trading centres encompassing cities, suburbs, and small and mid-sized towns. The hi-tech network consisting of VSATs, MPLS, leased lines and ISDN lines from multiple service providers have played an important role in the process of making Geojit Financial Services Ltd. the Best online trading. Other significant features are like the clearing and settlement system, risk management and depository systems, all of which are managed centrally. The need of the individual investors is catered by the Geojit's retail spread and the research desk sends out SMS alerts, market pointers, research reports, and stock recommendations.
It is for all these products as provided by the Geojit Financial Services Ltd. that the investors can get the Best online trading services for a convenient, cost effective and speedy transaction of shares.
WRITE A BANK BUSINESS PLAN
PlanMagic Business offers you easy to use well written bank business plan template in a popular word processor format, a fully automated close-to-reality financial projection application in MS Excel, an easy to use presentation template, and a comprehensive business plan guide. The Advanced Edition (AE) includes more state-of-the-art financial analysis tools as well as a Web marketing guide.
Buy Business Plan Software
NOW PLAN TO STARTUP, EXPAND OR MONITOR A BANK THE EASY WAY
* plan any bank like a pro
* plan to finance any bank start-up or expansion
* check the feasibility of your plans
* surprise any potential investor with a thorough and complete presentation
* analyze the financial situation with state-of-the-art analysis tools
* stay up-to-date with the real financial situation at all times
* unlimited what-if and other analyses for 5 years without loss of data
* unique tools such as line of credit scenarios, break-even analysis per product line, ROA/ROE/SGR chart, and more
It's the easiest to use business plan program available today. A program that produces faster results than any other, and is brought to you by a company with over 25 years of related experience. It is a helpful bank business plan program and offers the necessary flexibility. Its structure is the preferred format today and it offers you a template that includes all that should be included in a bank business plan geared toward success. The financial application is among the best in the world.
Designed to help you make decisions faster and easier. It's the best value your money can buy when it comes to bank business plan software
The preferred format bank business plan template for investors, SBA, banks and angel investors in MS Word format.
You don't have to create your own contents from scratch or delete most of it as may be the case with a sample plan. You'll also get the most professional printed results. The program includes products, services and one additional business plan template of your choice (in this case bank business plan template). You can also purchase one additional business plan template. The bank business plan template is fully geared towards the bank business. Easily add project plans, phasing diagrams, floor plans, specific plans and more as is needed. Easily insert financial data from the financial application.
PlanMagic Business offers you easy to use well written bank business plan template in a popular word processor format, a fully automated close-to-reality financial projection application in MS Excel, an easy to use presentation template, and a comprehensive business plan guide. The Advanced Edition (AE) includes more state-of-the-art financial analysis tools as well as a Web marketing guide.
Buy Business Plan Software
NOW PLAN TO STARTUP, EXPAND OR MONITOR A BANK THE EASY WAY
* plan any bank like a pro
* plan to finance any bank start-up or expansion
* check the feasibility of your plans
* surprise any potential investor with a thorough and complete presentation
* analyze the financial situation with state-of-the-art analysis tools
* stay up-to-date with the real financial situation at all times
* unlimited what-if and other analyses for 5 years without loss of data
* unique tools such as line of credit scenarios, break-even analysis per product line, ROA/ROE/SGR chart, and more
It's the easiest to use business plan program available today. A program that produces faster results than any other, and is brought to you by a company with over 25 years of related experience. It is a helpful bank business plan program and offers the necessary flexibility. Its structure is the preferred format today and it offers you a template that includes all that should be included in a bank business plan geared toward success. The financial application is among the best in the world.
Designed to help you make decisions faster and easier. It's the best value your money can buy when it comes to bank business plan software
The preferred format bank business plan template for investors, SBA, banks and angel investors in MS Word format.
You don't have to create your own contents from scratch or delete most of it as may be the case with a sample plan. You'll also get the most professional printed results. The program includes products, services and one additional business plan template of your choice (in this case bank business plan template). You can also purchase one additional business plan template. The bank business plan template is fully geared towards the bank business. Easily add project plans, phasing diagrams, floor plans, specific plans and more as is needed. Easily insert financial data from the financial application.
The top bank in India – HDFC Bank.
Yes, there’s one bank that continues to roll better than all others – HDFC Bank. Once again, for the fifth year in a row, the Aditya Puri-led bank beat 76 others to emerge as the #1 player in the industry.
Fastest growing small bank – Yes Bank.
Among the small banks (balance sheet size less than RS 24,000 crore), YES Bank comes in at #2 right behind Punjab & Sind Bank. That means it has beaten other relatively young banks such as Rana Talwar’s Centurion Bank of Punjab, Uday Kotak’s Kotak Mahindra Bank, and the Hindujas’ IndusInd Bank to emerge as the fastest growing bank.
Fastest growing big bank – Axis Bank.
What would you call a bank that has grown its profits at 30 per cent or more in 28 of the last 30 quarters? At the least, a consistent performer. But what has earned P.J. Nayak-led Axis Bank (formerly UTI Bank) its distinction as the fastest growing big bank is its equally impressive growth in other areas such as deposits, and loans and advances.
The most efficient big bank – Federal Bank.
Our strength is technology coupled with human touch,” says Federal Bank Chairman and Managing Director M. Venugopalan. No wonder his Kerala-based private sector bank once again ranks as the most efficient big bank in this year’s BT-KPMG study of best banks.
The most efficient small bank – Karur Vysya Bank.
Karur Vysya is one of the older private sector players but a relatively new convert to technology (it introduced core banking solutions in 2005). Currently, the bank has 281 branches (and will expand to 300 in next two months), 279 ATMs of its own including 18 in rural areas and 108 in semi urban areas, and piggybacks on 10,000 other ATMs. Still, the bank is keen to build its physical presence. It plans to increase the number of branches to 300 shortly and create a pan-India presence.
Best small bank – Punjab & Sind Bank.
It’s been a dramatic story of turnaround at Punjab & Sind Bank from #7 in the small bank category (less than Rs 24,000 crore in balance sheet size) in our 2006 rankings, it has vaulted to the #1 position.
One thing I can vouch for – I have been banking with HDFC Bank for last 8 years and they fully deserve the top slot !
Yes, there’s one bank that continues to roll better than all others – HDFC Bank. Once again, for the fifth year in a row, the Aditya Puri-led bank beat 76 others to emerge as the #1 player in the industry.
Fastest growing small bank – Yes Bank.
Among the small banks (balance sheet size less than RS 24,000 crore), YES Bank comes in at #2 right behind Punjab & Sind Bank. That means it has beaten other relatively young banks such as Rana Talwar’s Centurion Bank of Punjab, Uday Kotak’s Kotak Mahindra Bank, and the Hindujas’ IndusInd Bank to emerge as the fastest growing bank.
Fastest growing big bank – Axis Bank.
What would you call a bank that has grown its profits at 30 per cent or more in 28 of the last 30 quarters? At the least, a consistent performer. But what has earned P.J. Nayak-led Axis Bank (formerly UTI Bank) its distinction as the fastest growing big bank is its equally impressive growth in other areas such as deposits, and loans and advances.
The most efficient big bank – Federal Bank.
Our strength is technology coupled with human touch,” says Federal Bank Chairman and Managing Director M. Venugopalan. No wonder his Kerala-based private sector bank once again ranks as the most efficient big bank in this year’s BT-KPMG study of best banks.
The most efficient small bank – Karur Vysya Bank.
Karur Vysya is one of the older private sector players but a relatively new convert to technology (it introduced core banking solutions in 2005). Currently, the bank has 281 branches (and will expand to 300 in next two months), 279 ATMs of its own including 18 in rural areas and 108 in semi urban areas, and piggybacks on 10,000 other ATMs. Still, the bank is keen to build its physical presence. It plans to increase the number of branches to 300 shortly and create a pan-India presence.
Best small bank – Punjab & Sind Bank.
It’s been a dramatic story of turnaround at Punjab & Sind Bank from #7 in the small bank category (less than Rs 24,000 crore in balance sheet size) in our 2006 rankings, it has vaulted to the #1 position.
One thing I can vouch for – I have been banking with HDFC Bank for last 8 years and they fully deserve the top slot !
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