4(c) Pricing Framework

Marketing Sales

• Advertisement • Branding • Sales Support • Human Capital • Offering • Multi-channel management

Value Chain

Product

• Commercial Banking: Deposits, Loans, Treasury, credit card • Investment: Underwriting, IB services, research • Services: Asset Management, book building, Account Management

Transactions

• Commissions • Trading • Clearing and settlement

Major Players

Company Market Share in Deposit Market Share in Credit

Market Capitalizati on (INR CR)

SBI 23.90% 22.50% 3,86,123

ICICI 5.70% 6.30% 4,48,638

HDFC 8.50% 9.60% 8,26,493

Axis Bank 4.70% 5.50% 2,33,067

Driver Key Growth Drivers

Growth Revenue Cost

Income Level Rising per capita income and rural income Net interest rate margin

Digital Infrastructure

Tele density Soaring tele density in rural areas Transaction fees and agency fees

Loan Books

Both corporate and retail loan books have seen increasing demand.

Speculative positioning based on flow of information(hedging)

Physical Infrastructure

Revenue Breakup (FY’20)

41.18

8.82

16…

33.82

Public Sector Banks Private Sector Banks Foreign Banks

Government Initiative

Scheme

Pradhan Mantri Suraksha Bima Yojana

Pradhan Mantri Jeevan Jyoti Bima Yojana

Pradhan Mantri Jan Dhan Yojana

Atal Pension Yojana About

Accidental death insurance cover for up to Rs. 2 lakhs. . Gross enrolment under the scheme reached 154 million in FY19.

Life insurance cover of Rs. 2 Lakhs . Gross enrolment under the scheme reached 59 million in FY19 Under the scheme, each & every citizen will be enrolled in a bank for opening a No-Frills account and is eligible for Rs. 5000/- overdraft Under the scheme, subscribers would receive fixed pension up to Rs. 5,000 from the age of 60 based on their contribution

Important News

• On November 6, 2020, WhatsApp started UPI payments service in India on receiving the National Payments Corporation of India (NPCI) approval to ‘Go

Live’ on UPI in a graded manner • To improve infrastructure in villages, 204,000 point of sale (PoS) terminals have been sanctioned from the Financial Inclusion Fund by National Bank for

Agriculture & Rural Development (NABARD)

• In 2019, banking and financial services witnessed 32 M&A (merger and acquisition) activities worth US$ 1.72 billion

Facts

Asset of public sector banks stood at Rs. 107.83 lakh crore (US$ 1.52 trillion) in FY20

April 2021: Bank Credit – Rs. 108.02 trillion Deposit – Rs. 151.34 trillion