STRATEGY

Derives : Greek(strategia), command,

generalship. Plan of action designed to achieve a specific goal. Gaining a position of by best possibilities. Set of options ("strategic choices") than a fixed plan.

NEED FOR GROWTH

Survival Economies of Scale Owners mandate Expansion of the market Latest Technology Prestige and Power Government Policy Self-sufficiency

ADVANTAGES
For business opportunities. For facing competition in the market by diversifying the

product line. For providing protection against adverse business conditions For gaining economic and market power For raising profits and creating resources for further reinvestment into business. For making optimum utilization of resources. For securing subsidies, tax concessions and other incentives offered by the government.

DISADVANTAGES
Finance

Market
Human relations problem Management

Lack of knowledge
Social problems.

STRATEGY OF GROWTH
USE THE CREDIT PROCESS TO IDENTIFY OPPORTUNITIES. Information about business finances and operating

results are shared with banks as part of the credit process.

Banks store wealth of information to advise their business clients on strategies to improve the health of their businesses.
Loan officers can develop recommendations for strategies, products and partners that enable to improve business performance.

PROVIDE ROBUST ONLINE INFORMATION AND TRANSACTION CAPABILITIES. Online banking platforms be designed to

minimize the time spent on performing functions. Owners and financial managers to conduct a variety of more sophisticated transactions. Access detailed account histories. Manage payments and move funds across accounts.
Bankers need to arm themselves with better products, customer management protocols and online banking capabilities.

CLIENT SEGMENTATION Segment lines of business and expanding the

businesses.
Some products developed for specific segments have seen attractive levels of growth for example a virtual wallet for the emerging affluent. Done to sharpen features and pricing to have deeper relationships.

LIFECYCLE DEVELOPMENT
This strategy requires providing continuity of client experience, congruence of evaluation assumptions and, importantly, consistency in advice, which pays off in client trust and loyalty. Continuity and consistency of the wealth clients experience are being enhanced by increased investment in offer management and optimization

capabilities and infrastructure.

INNOVATION FOR GROWTH

A mutual fund store, selling solely mutual funds through low-cost dedicated stores and advisors. EFTs, index funds that trade throughout the day on exchanges and longevity insurance, allowing clients to assure cash flow.
New mobile applications that provide research, trading and funds transfer capabilities are pushing the

envelope on new distribution models.

INTENSIVE GROWTH Market Penetration. - current product to its current customers.

Market Development. - current product to an adjacent market. Alternative Channels. This growth strategy involves pursuing

customers in a different way such as, for example, selling your products online.
Product Development. - developing new products to sell to your

existing customers as well as to new ones

ACQUISITIONS
The bank with one bad purchase can be acquired. Acquisitions can be a massive source of profit and a means to growth.

DIVERSIFICATION

It is where the firm sells entirely new

products to new customers in new markets. The reasons for such a business strategy could be due to a rise in opportunity.

 Initial public offering (IPO) refers to the company's first

IPO

equity issue made available to the public to raise new source of funds.
If the firm decides to put up a sale of its stock and sells

part of their ownership to the public, it then engages in an IPO.

JOINT VENTURE
Joining forces with another business. Both parties need to benefit, and most joint ventures are

carried out by those businesses complementary services or products.

that

offer

Joint ventures can give you access to new markets and

customers.

TECHNOLOGY IMPROVEMENT
Credit Cards/Debit Cards
ATM E-Cheques

EFT (Electronic Funds Transfer)

DeMAT Accounts Mobile Banking Telephone Banking Internet Banking EDI (Electronic Data Interchange)

NORMS BY GOVT.
NPAS Income Recognition

Asset Classification Substandard Asset Doubtful Asset Loss Asset

Provisioning Norms

PROVISIONING NORMS
ASSET LOSS ASSETS DOUBTFUL ASSETS UNSECURED ASSETS SECURED ASSETS( DOUBTFUL
PERIOD)

% OF PROVISION 100 % 100%

UPTO ONE YEAR 1-3 YEAR MORE THEN 3 YEAR SUBSTANDARD ASSETS

25% 40% 100% 15 % ON TOTAL OUTSTANDING LOANS

MARKET DISCIPLINE
Market discipline is a market-based promotion of the transparency and disclosure of the risks associated with a business or entity. It works in concert with regulatory systems to increase the safety and soundness of the market. Transparency Disclosure of critical information

BENCHMARKING BY INTERNATIONAL STANDARDS

Benchmarking is the process of comparing one's business processes and performance metrics to industry bests or best practices from other industries. Dimensions typically measured are quality, time and cost.

UNIVERSAL BANKING
Universal banking is a combination of Commercial banking, Investment banking, Development banking, Insurance and many other financial activities.

Functions Merchant Banking Mutual Funds Factoring Credit cards Housing Finance Auto loans Retail loans Insurance.

SUPERVISION & REGULATIONS

Monitoring and examining the condition of bank

Their compliance with laws and regulations.

Bank regulation includes issuing specific regulations and guidelines to govern the operations, activities and acquisitions of banking organizations.

HRD IN BANKING
Human resource development is a process through which

employees in an organization are assisted to realize their full potential for their present and future jobs.
It involves long term perspective which visualizes change

through involvement and ownership of such change by the participants.

 Improve Income

OTHER STRATEGIES

Grow by expansion
Grow by partnership Improve Efficiency

Optimize Allocation of Capital

Reducing non profit assets