11 - Chapter 4

CHAPTER - 4
DATA ANALYSIS AND

INTERPRETATION

CHAPTER ‐ 4
DATA ANALYSIS AND INTERPRETATION

The main objective of this study is to find out the impact of
bancassurance product on banking industry in India. In order to study
the need of bancassurance, survey was conducted among the customers
as well as the bank employees of eight banks to know the popularity and
growth perspective of bancassurance. The banks which have been
selected as simple random samples for this purpose are as follows:
1. Andhra Bank
2. Canara Bank
3. Corporation Bank
4. HDFC BANK
5. ICICI Bank
6. IDBI Bank
7. Oriental Bank of Commerce
8. State Bank of India
Although bancassurance business is wide spread over the country,
this survey is confined to only one location i.e. Vadodara. As this location
is having overseas business, industrial manufacturing activities, and
higher educational institutes, this location is believed to be a
representative of any well developed business centre.
The collected data is analyzed and interpreted by applying various
statistical tools and techniques. It is presented in the form of tables, pie
and multiple bar diagrams which is converted into charts, maps and
graphs to analyze the data. This chapter includes:
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¾ Various Trends of Bancassurance.
¾ Challenges to bancassurance.
¾ SWOT analysis.
¾ Analysis based on the impact of bancassurance product on
banking business in India.
¾ Analysis and interpretation of primary data collected.

4.1 VARIOUS TRENDS OF BANCASSURANCE:
Bancassurance is still evolving in Asia and is still in its infancy stage
in India so it is too early to evaluate. However, an immediate survey
revealed that a large number of public and private banks including
foreign banks are now making use of the bancassurance channels in one
form or the other in India.
Following trends of bancassurance are significantly followed.
1. Bancassurers have not only targeted the mass market but have
also carefully begun to segment the market which has resulted in
the tailor‐made or rather perfect products for each segment.
2. Some bancassurers focus exclusively on distribution. In some
markets, face‐to‐face contact is preferred which proves to be a
favorable arrangement for the development of bancassurance
business.
3. Initially banks opt for either ‘referral models’ or ‘corporate
agency’.
157

4. Banks are offering space in their own premises to accommodate
the insurance staff for selling the insurance products or giving
access to their client’s database. Insurance companies can use this
opportunity to increase their sale.
5. Nowadays banks are campaigning and marketing the insurance
products across the globe. Number of banks in India act as
‘corporate agents’ to insurance company.
4.2 CHALLENGES TO BANCASSURANCE:
It is extremely a difficult task to expand bancassurance in the
emerging markets. Globally, the insurers are successfully persuading
bancassurance to gain hold in markets with low insurance penetration
and a limited variety of distribution channels. The following are the
challenges that are faced by bancassurance industry in India:
1. The change from manufacturing to pure distribution of insurance
requires banks to pull together the incentives of different
suppliers with their own products in a more improved way.
2. Bank employees are usually low on enthusiasm. Lack of sales
culture itself is a big barrier than the lack of marketing skills in
the employees. Banks are generally used to only product
packaged selling and hence selling insurance products logically
do not seem to fit in their system.
3. Private sector insurance firms are finding ‘change management’
as a major challenge. A public sector bank frequently gets a new
chairman almost every two years from different bank. This
results in an absolute change in the distribution strategy and
158

further creates dissimilarity between public and private sector

banks.
4. Human resource management has experienced some
complications due to such association in the financial industry.
Recently some issues like increased work load, maintaining the
motivation levels have cropped up quite occasionally among the
employees. Therefore, human resource issues should be given
first priority before entering into bancassurance business.
5. The banks also fear that at some point the insurance partner may
end up cross‐selling banking products to their policy holders. If
the insurer is selling the products by agents as well as banks then
there is a risk of clash between both if the agents targeting the
same customers.
6. Banks will have to be geared up for probable interference from
client relations arising from numerous general insurance claims.
4.3 SWOT ANALYSIS ON BANCASSURANCE:
Banking and insurance are two different entities. Banks have lesser
risk in business as compared to the insurance companies. However, in
India bancassurance as a means of distribution of insurance products is
already in force in some form or the other. The functions of
bancassurance also differ. Banks observe bancassurance as a means of
product diversification and a source for earning additional fee income.
Insurance companies regard it as a tool for increasing their market
penetration and premium turnover. Customers can expect improved
premium rates and better‐quality services delivered at their doorsteps.
So, everyone is getting benefited here.
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Appling bancassurance effectively can help the banks to develop a
sales culture within the organization. This can be used by the bank to
promote traditional banking products and other financial services.
Bancassurance helps banks and insurance companies to perfectly
complement each other’s strengths. It is therefore essential to have a
SWOT analysis done before experimenting bancassurance in India. A
SWOT analysis of bancassurance is given below.

4.3.1 STRENGTHS OF BANCASSURANCE:
¾ In a country like India, a huge population is lying ahead, to make
the most of life insurance products.
¾ Banks other strength lies in the huge set of skilled professionals,
who may easily be blended together for any bancassurance
venture.
¾ Banks have the integrity established with their customers because
of the variety of services and schemes provided by them.
¾ Banks have the benefit of their wide network of branches, even in
the remote areas. This can help them to implement a particular
task on a large and massive scale.
¾ They also enjoy position of pride in the hearts of many people
because of their charisma and sustained image.
¾ Banks are well aware of the psychology of the customers because
they interact with them on regular basis. This can help the bankers
to guess the attitude and various needs of the customers which
would in turn help them to change the face of insurance
distribution to personal line insurance.
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¾ In India, people trust more on Life Insurance Corporation of India
(LIC) and General Insurance Corporation of India (GIC) for taking
insurance. If the products of LIC and GIC are routed through
bancassurance, this would provide an additional benefit to the
insurance companies.
¾ Banks can take the advantage of their brand name, trained staff
and reliability of people for selling of the insurance products in a
more sophisticated way.

4.3.2 WEAKNESSES OF BANCASSURANCE:
¾ In spite of the growing emphasis on total branch mechanism and
full computerization of bank branches, the rural and semi‐urban
banks are still to see information technology (IT) as a facility. The
IT culture is unfortunately missing completely in all of the future
collaborations. The internet connections are also not properly
provided to the staff. 1
¾ In order to distribute insurance products, the bank employees
have to undergo a definite period of training, followed by a test
and then get them licensed. Moreover, the standard of
examinations has been raised lately making it impossible for many
examinees to clear.
¾ Banks are traditionally ‘demand driven’ organizations and have
active selling philosophy. Insurance organizations are usually
‘need driven’ and have an aggressive selling philosophy. So there

1
Bancassurance: An emerging concept in India by Naveen Sethi
161

may arise differences in the way of thinking between bankers and
the managers of the insurance companies
¾ Generally, a customer visits a bank for doing simple transactions
like deposit or withdrawal. Busy customers will have no time to
have a long‐term discussion on a durable purchase like insurance
across the counter. Moreover, the visits in urban or metro
branches are also going to be less because of ATM’s and e‐
banking.
¾ Another weakness is the inflexibility of the products i.e. it can not
be always perfect as demanded by the customers. So an in‐built
flexibility is necessary for a bancassurance venture to succeed, so
as to make the product eye‐catching to the customers.

4.3.3 OPPORTUNITIES IN BANCASSURANCE:
¾ There are many people in the country who are still unaware about
insurance and its various products and are waiting for someone to
guide them.
¾ Customers are willing to avail many services like lockers, safe
deposits schemes and additional products and services from banks
in urban and metro areas. This provides an excellent opportunity
to promote many properties linked general insurance policies like
fire insurance, burglary insurance, medi‐claim insurance etc.
¾ Banks provide finance in the form of loans for cars, buying a house
etc. to clients, They can take advantage of this by cross‐selling
insurance products and combine it as a package.
¾ Bankers can promote insurance by taking advantage of the
corporate customers and tying up for the insurance of the
162

employees of corporate customers. Usually, banks offer salary

payment and loan facilities but here they can also provide
insurance as well. This may prove to be a good prospect with easy
access to the bankers.

4.3.4 THREATS IN BANCASSURANCE:
¾ Success of a bancassurance venture requires change in approach,
thinking and work culture on the part of everybody involved. The
work forces are so well‐established at every level that there may
arise specific threat of opposition to any change that
bancassurance may set in. Any rearrangement to a new company
or subsidiary or change from one work to a different style of work
can be offended with intensity.
¾ Another possible threat may come from non‐response from the
target customers. This happened in USA in 1980s after the
enactment of Garn ‐ St Germaine Act. A rush of joint ventures
took place between banks and insurance companies and all these
failed due to the non‐response from the target customers. US
banks have now again (since late 1990s) turned their attention to
insurance mainly life insurance. 2
¾ Insurance in India is more accepted as a saving option than
providing risk cover. So this can create an adverse effect in the
minds of the bankers that such products may reduce the sales of
regular bank saving products. Also selling of investment and good

2
Manoj Kumar, "Bancassurance: A SWOT Analysis," Insurance Professional, 2000, Web, Oct. 2008,
<http://www.einsuranceprofessional.com/pppune1.html>.

163

returns on policy can affect the fixed‐deposit portfolio of the
banks.
¾ There may arise a problem of ‘reputational contagion’ i.e. loss of
market confidence. Like one venture leading to loss of confidence
on the other because of identical brand recognition, similar
management and consolidated financial reporting etc.
¾ The most common obstacle to the success of bancassurance are
poor manpower management, lack of sales culture within the
bank, no involvement by the branch manager, insufficient product
promotions, failure to integrate marketing plans, marginal
database expertise, poor sales channel linkages, inadequate
incentives, resistance to change, negative attitudes towards
insurance and intense marketing strategy. 3

3
Flourishing Bancassurance business: An Indian perspective by S Sarvanakumar, U Punitha and S
Sankar.

164

4.4. ANALYSIS BASED ON THE IMPACT OF BANCASSURANCE
PRODUCT ON BANKING BUSINESS IN INDIA
The performance of both banks and insurance companies inter‐

depend on each other. The following study shows the impact of
bancassurance on the overall financial performance of banks in India.
For this purpose, the researcher has selected eight different banks from
different areas in Vadodara district. The figures of Net worth, Deposits,
Advances, Interest income, % Net of Non performing Assets, Dividends
and Net profit reveal that bancassurance has paved the way for banks to
grow. Although there are number of other factors which contributed to
the growth of banks, but bancassurance is one of the factors.
4.4.1 ANDHRA BANK

Andhra Bank was founded in 1923 by Dr. Bhogaraju Pattabhi
Sitaramayya in Machilipatnam; Andhra Pradesh. It is a medium‐
sized public sector bank (PSB), with a network of 1,938 branches, 15
extension counters and 38 satellite offices.
Under bancassurance business, Andhra Bank along with Bank of

Baroda and Legal & General Group of UK has formed a joint venture life
insurance company IndiaFirst Life Insurance Company. It was launched in
the month of November 2009. 1 The following table 4.4.1.1 shows the
financial position of Andhra Bank and the income derived from
bancassurance business.

1
http://en.wikipedia.org/wiki/Andhra_Bank
165

Table‐4.4.1.1
Financial position of Andhra Bank and income derived from its bancassurance business.
(Rs. in Crores)
Year Net worth Advances Deposits Net Interest Dividend Net Profit % Net of IndiaFirst Life

income NPA Insurance

Company

2008‐09 3,647 44,428 59,390 1,627 194 653 0.18% ‐

2009‐10 4,410 56,505 77,688 2,195 218 1,046 0.17% 16

2010‐11 6,492 71,435 92,156 3,221 243 1,267 0.38% 47
2011‐12 7,479 83,642 1,05,851 3,759 358 1,345 0.91% 23

2012‐13 8,441 98,373 1,23,796 3,757 327 1,289 2.45% 28

Source: Annual Report of Andhra Bank from 2008 to 2013

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Table 4.4.1.1 shows that the net worth of Andhra Bank for the
year 2008‐09 was Rs. 3,647 crores and a growth of 20.18% for the year
ended 2009‐10. It has grown substantially from Rs. 4,410 crores in 2009‐
10 to Rs 6,492 crores in 2010‐11 i.e. an increase of 47.21%. There was a
growth of 15.2% in the year 2011‐12 and in the year 2012‐13, net worth
increased from Rs. 7,479 crores in the previous year to Rs. 8,441 crores
i.e. registering a growth of 12.86%.
Advances for the year 2008‐09 were Rs. 44,428 crores. It increased
by 27.19% i.e. Rs. 56,505 crores for year 2009‐2010 from Rs. 44,428
crores of 2008‐09. The bank registered a growth of 26.42% from 2009‐10
to 2010‐11 and a growth of 17.09% from 2010‐11 to 2011‐12. Advances
reached to Rs. 98,373 crores registering a growth of 18% in the year
2012‐13.
Bank’s total deposits amounted to Rs. 77,688 crores as on March
2010 showing a growth of 30.81% over previous year’s i.e. 2008‐09
deposits of Rs.59,390 crores. It has grown by 18.62% to reach Rs 92,156
crores in the year 2010‐11 and 14.90% to reach Rs. 1, 05,851 crores in
the year 2011‐12. In the year 2012‐13, Andhra Bank’s total deposits
amounted to Rs. 1, 23,796 crores showing an addition of Rs. 17, 947
crores and growth rate of 17% over previous year.
Total net interest income of Andhra Bank has shown a growth of
34.90% from Rs. 1,627 crores in year 2008‐09 to Rs. 2,195 crores in the
year 2009‐10. The bank showed a robust growth of 46.76% from 2009‐
10 to 2010‐11. Year 2011‐12 registered a growth of 16.71% i.e. Rs. 3,759
crores over previous year’s interest income of Rs. 3,221 crores. It
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decreased by ‐0.06% and earned Rs. 3,757 crores for the year ended
2012‐13.
Dividend of Rs. 194 crores was recommended by the Board of
Directors of Andhra Bank for the year 2008‐09. It was Rs. 218 crores for
the year 2009‐10, Rs. 243 crores for the year 2010‐11 and Rs. 358 crores
for the year 2011‐12. Dividend proposed for the year ended 2012‐13
was Rs. 327 crores.
Net profit increased registering a strong growth by 60.15% to Rs.
1,046 crores in 2009‐10 from Rs. 653 crores in the previous year 2008‐
09. It increased by 21.15% from Rs. 1,046 crores in 2009‐10 to Rs. 1,267
crores of 2010‐11. It has grown by 6.1% to reach Rs. 1,345 crores in the
year 2011‐12. Net profit for the year 2012‐13 stood at Rs. 1,289 crores.
It reduced by showing a loss of ‐4.16%.
The asset profile of the bank continues to be very healthy. The Net
Non Performing Assets (NPA) to Net Advances stood at 0.18% for the
year 2008‐09. It stood at 0.17% for the year ended 2009‐10. It has
improved from 0.18% in the previous year to 0.38% for the year 2010‐11
to 0.91% for the year 2011‐12. For the year 2012‐13, Net Non
Performing Assets (NPA) to Net Advances stood at 2.45%
Andhra Bank along with Bank of Baroda and Legal & General Group
of UK has formed a joint venture life insurance company i.e. IndiaFirst
Life Insurance Company under bancassurance business. It was launched
in the month of November 2009. It posted a net profit of Rs. 16 crores in
the year 2009‐10 and a whopping profit of Rs. 47 crores for the year
2010‐11. During the year 2011‐12, the net profit from life insurance
168

business dropped down to Rs. 23 crores from Rs. 47 crores in previous
year. In the year 2012‐13 the bank recorded a net profit of Rs. 28 crores.
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4.4.2 CANARA BANK
Canara Bank was founded in 1906 by Shri Ammembal Subba Rao
Pai, a great visionary and philanthropist, at Mangalore, then a small port
in Karnataka. The bank was nationalized in 1969. Today, the bank has a
network of 3564 branches and 4000 ATMs spread across India. It also
has offices abroad in London, Hong Kong, Moscow, Shanghai, Doha, and
Dubai.

The bank has tie up arrangements in both life and general
insurance through Canara HSBC Oriental Bank of Commerce and United
India Insurance Company Ltd. (UIICL) under bancassurance division. It
started its Bancassurance business from June 2008. 2 The following table
4.4.2.1 shows the financial position of Canara Bank and the income
derived from bancassurance business.

2
http://en.wikipedia.org/wiki/Canara_Bank
170

Table‐4.4.2.1
Financial position of Canara Bank and income derived from its bancassurance business.

(Rs. in Crores)
Year Net Advances Deposits Net Dividend Net Profit % Net of Canara United India
worth Interest NPA HSBC OBC Insurance
income Life Co. Ltd.
Insurance
Co. Ltd.
2008‐09 12,208 1,38,219 1,86,893 4,718 328 2,072 1.09% 18 6

2009‐10 14,672 1,69,335 2,34,651 5,681 410 3,019 1.06% 53 8

2010‐11 20,039 2,12,467 2,93,973 7,823 487 4,025 1.11% 51 11
2011‐12 22,690 2,32,490 3,27,054 7,689 487 3,282 1.46% 26 12

2012‐13 24,878 2,42,177 3,55,856 7,879 576 2,872 2.18% 26 13
Source: Annual reports of Canara Bank from 2008 to 2013.

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Table 4.4.2.1 shows that the net worth of Canara Bank for the year
2008‐09 was Rs. 12,208 crores and a growth of 20.92% for the year
ended 2009‐10. It has grown substantially from Rs. 14,672 crores in
2009‐10 to Rs 20,039 crores in 2010‐11 i.e. an increase of 36.59%. There
was a growth of 13.22% in the year 2011‐12 and in the year 2012‐13, net
worth increased from Rs. 22,690 crores of previous years to Rs. 24,878
crores i.e. registering a growth of 9.64%.
Advances for the year 2008‐09 were Rs. 1, 38,219 crores. It
increased by 22.51% i.e. Rs. 1, 69,335 crores for year 2009‐2010 from Rs.
1, 38,219 crores of 2008‐09. The bank registered a growth of 25.74%
from 2009‐10 to 2010‐11 and a growth of 9.42% from 2010‐11 to 2011‐
12. Advances reached to Rs. 2, 42,177 crores registering a moderate
growth of 4.17% in the year 2012‐13.
Canara Bank’s total deposits amounted to Rs. 2, 34,651 crores as on
March 2010 showing a growth of 25.60% over previous year’s i.e. 2008‐
09 deposits of Rs. 1, 86,893 crores. It has grown by 25.28% to reach Rs.
2, 93,973 crores in the year 2010‐11 and 11.25% to reach Rs. 3, 27,054
crores in the year 2011‐12. In the year 2012‐13, Canara Bank’s total
deposits amounted to Rs. 3, 55,856 crores showing an addition of Rs.28,
802 crores and growth rate of 8.8% over previous year.
Total net interest income of Canara Bank has shown a growth of
year 2009‐10. The bank showed a strong growth of 37.72% from 2009‐
10 to 2010‐11. In the year 2011‐12, growth rate decreased by ‐ 1.71%
i.e. Rs. 7,689 crores over previous year’s interest income of Rs. 7,823
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crores. It registered a growth of 2.47% for the year ended 2012‐13 with
Rs. 7,879 crores.
Directors of Canara Bank for the year 2008‐09. It was Rs. 410 crores for
the year 2009‐10, Rs. 487 crores for the year 2010‐11 as well as for the
year 2011‐12. Dividend proposed for the year ended 2012‐13 was Rs.
576 crores.
3,019 crores in 2009‐10 from Rs. 2,072 crores in the previous year 2008‐
crores of 2010‐11. In the year 2011‐12 it has reduced by ‐18.49% and
earned a profit of Rs. 3,281 crores as compared to previous year’s profit
of Rs. 4,026 crores. Net profit for the year 2012‐13 stood at Rs. 2,872
crores. It reduced by ‐12.49%.
Canara Bank has a tie up arrangements in both life and general
insurance segments under bancassurance division. It started its
Bancassurance business from June 2008. In the year 2008‐09, bank
earned a commission income of Rs. 18 crores from its joint venture
Canara HSBC OBC Life Insurance Co. Ltd. It earned a huge commission
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income of Rs. 53 crores in the year 2009‐10 and Rs. 51 crores for the
year 2010‐11. During the year 2011‐12, income from life insurance
business dropped down to Rs. 26 crores from Rs. 51 crores in previous
year. In the year 2012‐13 the bank recorded a commission income of Rs.
26 crores.
The Bank also has a tie‐up arrangement with M/s United India
Insurance Company Ltd (UIICL) for General Insurance business. Canara
Bank recorded a commission income of Rs. 6 crores during the year
2008‐09. It earned a huge commission income of Rs. 8 crores in the year
2009‐10 and Rs. 11 crores for the year 2010‐11. In the year 2011‐12, the
bank recorded a commission income of Rs. 12 crores and Rs. 13 crores
for the year 2012‐13.

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4.4.3 CORPORATION BANK

Corporation Bank is a public sector banking company with
headquarters in Mangalore. It was founded on 12th March 1906 in the
Temple Town of Udupi, by a small group of philanthropists led by Khan
Bahadur Haji Abdulla Haji Kasim Saheb Bahadur. Today the bank has
1869 branches, 1425 ATMs and 3545 branchless banking units.
Corporation Bank has a tie up arrangement under bancassurance

segment for both life insurance through Life Insurance Corporation of
India from the year 2008 and general insurance through New India
Assurance Co. Ltd. from the year 2009. 3 The following table 4.4.3.1
shows the financial position of Corporation Bank and the income derived
from bancassurance business.

3
http://en.wikipedia.org/wiki/Corporation_bank
175

Table‐4.4.3.1
Financial position of Corporation Bank and income derived from its bancassurance business.

(Rs. in Crores)
Year Net Advances Deposits Net Dividend Net Profit % Net of Life New India
worth Interest NPA Insurance Assurance
income Corporation Co. Ltd.
of India
2008‐09 4,897 48,512 73,984 1,691 210 893 0.29% 18 ‐

2009‐10 5,775 63,203 92,734 2,210 277 1,170 0.31% 20 11

2010‐11 7,138 86,850 1,16,748 2,939 344 1,413 0.46% 23 9
2011‐12 8,276 1,00,469 1,36,142 3,147 353 1,506 0.87% 43 12

2012‐13 9,566 1,18,717 1,66,005 3,425 334 1,435 1.91% 45 15
Source: Annual reports of Corporation Bank from 2008 to 2013.

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Table 4.4.3.1 shows that the net worth of Corporation Bank for the
year 2008‐09 was Rs. 4,897 crores and a growth of 17.94% for the year
ended 2009‐10. It has grown substantially from Rs. 5,775 crores in 2009‐
10 to Rs 7,138 crores in 2010‐11 i.e. an increase of 23.60%. There was a
growth of 15.94% in the year 2011‐12 and in the year 2012‐13, net
worth increased from Rs. 8,276 crores of previous years to Rs. 9,566
Advances increased by 30.28% i.e. Rs. 63,203 crores for year 2009‐
2010 from Rs. 48,512 crores of 2008‐09. The bank registered a growth of
37.41% from Rs. 63,203 crores of 2009‐10 to Rs. 86,850 crores of 2010‐
11 and a growth of 15.68% from 2010‐11 to 2011‐12. Advances reached
to Rs. 1, 18,717 crores registering a growth of 18.16% in the year 2012‐
13.
Corporation Bank’s total deposits amounted to Rs. 92,734 crores as
on March 2010 showing a growth of 25.34% over previous year’s i.e.
2008‐09 deposits of Rs. 73,984 crores. It has grown by 25.90% to reach
Rs. 1, 16,748 crores in the year 2010‐11 and 16.61% to reach Rs. 1,
36,142 crores in the year 2011‐12. In the year 2012‐13, Corporation
Bank’s total deposits amounted to Rs. 1, 66,005 crores showing an
addition of Rs. 29, 863 crores and growth rate of 21.93% over previous
year.
Total net interest income of Corporation Bank has shown a growth
of 30.71% from Rs. 1,691 crores in year 2008‐09 to Rs. 2,210 crores in
the year 2009‐10. The bank registered a growth of 33% from 2009‐10 to
2010‐11. Year 2011‐12 showed a slight growth of 7.05 % i.e. Rs. 3,147
177

registered a growth of 8.86% for the year ended 2012‐13 with Rs 3,425
crores.
Directors of Corporation Bank for the year 2008‐09. It was Rs. 277 crores
for the year 2009‐10, Rs. 344 crores for the year 2010‐11 and Rs. 353
crores for the year 2011‐12. Dividend proposed for the year ended
2012‐13 was Rs. 334 crores.
crores of 2010‐11. In the year 2011‐12 it has shown a moderate growth
of 6.58% and earned a profit of Rs. 1,506 crores as compared to previous
year’s profit of Rs. 1,413 crores. Net profit of the bank has marginally
decreased from Rs. 1,506 crores in previous year 2011‐12 to Rs 1,435
crores during the year 2012‐13. It reduced by ‐4.71%.
Corporation Bank has a tie up arrangement under bancassurance

segment for both life insurance and general insurance through Life
Insurance Corporation of India and New India Assurance Co. Ltd. It
178

started its Bancassurance business in the year 2008 for life insurance
and for general insurance from the year 2009.
In the year 2008‐09, under Life Insurance segment, bank earned a
commission income of Rs. 18 crores from Life Insurance Corporation of
India. It earned a huge commission income of Rs. 20 crores in the year
2009‐10 and Rs. 23 crores for the year 2010‐11. During the year 2011‐
12, the net profit from life insurance business increased significantly to
Rs. 43 crores from Rs. 23 crores in previous year. In the year 2012‐13 the
bank recorded a commission income of Rs. 45 crores.
For General Insurance business, the bank has a tie‐up arrangement
with New India Assurance Co. Ltd. from the 2009. Corporation Bank
recorded a commission income of Rs. 11 crores during the year 2009‐10.
In the year 2010‐11 bank’s commission income dropped down to Rs. 9
crores from Rs. 11 crores of previous year. In the year 2011‐12, the bank
recorded a commission income of Rs. 12 crores and Rs. 15 crores for the
year 2012‐13.
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4.4.4 HOUSING DEVELOPMENT FINANCE CORPORATION
(HDFC) BANK LTD.
HDFC Bank was incorporated in 1994 by Housing Development

Finance Corporation Limited (HDFC), India's largest housing finance
company. It was among the first companies to receive an 'in principle'
approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector.
Under bancassurance business, HDFC Bank has a joint venture

named HDFC Standard Life Insurance Co. Ltd. and HDFC Ergo General
Insurance Co. Ltd. HDFC Standard Life Insurance Co. Ltd. was established
in the year 2000. It became the first private life insurance company in
India. HDFC Ergo General Insurance was established in the year 2002. It
is a joint venture between HDFC Ltd. which is India’s housing finance
institution and ERGO International AG, the primary insurance entity of
Munich Re Group. 4
The following table 4.4.4.1 shows the financial position of HDFC
Bank and the income derived from bancassurance business.

4
http://en.wikipedia.org/wiki/HDFC_Bank

180

Table‐4.4.4.1
Financial position of HDFC Bank and income derived from its bancassurance business.

(Rs. in Crores)
Year Net Advances Deposits Net Dividend Net Profit % Net of HDFC HDFC Ergo
worth Interest NPA Standard General
income Life Insurance
Insurance Co. Ltd.
Co. Ltd.
2008‐09 15,053 98,883 1,42,812 7,421 425 2,245 0.63% 327 22

2009‐10 21,522 1,25,831 1,67,404 8,387 549 2,949 0.13% 534 54

2010‐11 25,379 1,59,983 2,08,586 10,543 768 3,926 0.19% 670 78

2011‐12 29,925 1,95,420 2,46,706 12,297 1,009 5,167 0.18% 456 110
2012‐13 36,214 2,39,721 2,96,247 15,811 1,309 6,726 0.20% 472 126
Source: Annual reports of HDFC Bank from 2008 to 2013.

181

Table 4.4.4.1 shows that the net worth of HDFC Bank for the year
ended 2009‐10. It has grown substantially from Rs. 21,522 crores in
2009‐10 to Rs. 25,379 crores in 2010‐11 i.e. an increase of 17.92%. There
was a growth of 17.91% in the year 2011‐12 and in the year 2012‐13, net
worth increased from Rs. 29,925 crores in previous year to Rs. 36,214
Advances for the year 2008‐09 were Rs. 98,883 crores. It increased
by 27.25% i.e. Rs. 1, 25,831 crores for year 2009‐2010 from Rs. 98,883
crores of 2008‐09. The bank registered a growth of 27.1% from Rs.
1,25,831 crores of 2009‐10 to Rs. 1,59,983 crores of 2010‐11 and a
growth of 22.2% from 2010‐11 to 2011‐12. Advances reached to Rs. 2,
39,721 crores registering a growth of 22.7% in the year 2012‐13.
HDFC Bank’s total deposits amounted to Rs. 1, 67,404 crores as on
March 2010 showing a growth of 17% over previous year’s i.e. 2008‐09
deposits of Rs. 1, 42,812 crores. It has grown by 27.1% to reach Rs. 2,
08,586 crores in the year 2010‐11 and 18.3% to reach Rs. 2, 46,706
crores in the year 2011‐12. In the year 2012‐13, HDFC Bank’s total
deposits amounted to Rs. 2, 96,247 crores showing an addition of Rs.
49,541 crores and growth rate of 20.1% over previous year.
Total net interest income of HDFC Bank has shown a growth of
year 2009‐10. The bank registered a growth of 25.71% from 2009‐10 to
2010‐11. Year 2011‐12 has shown a reduction of 16.63% i.e. Rs. 12,297

182

registered a growth of 28.58% for the year ended 2012‐13 with Rs.
15,811 crores.
Directors of HDFC Bank for the year 2008‐09. It was Rs. 549 crores for
the year 2009‐10, Rs. 768 crores for the year 2010‐11 and Rs. 1,009
2012‐13 was Rs. 1,309 crores.
Net profit of HDFC Bank increased registering a strong growth by
30.2% to Rs. 2,949 crores in 2009‐10 from Rs. 2245 crores in the
previous year 2008‐09. It increased by 33% from Rs. 2949 crores in 2009‐
10 to Rs. 3,926 crores of 2010‐11. In the year 2011‐12 it has shown a
significant growth of 31.6% and earned a profit of Rs. 5,167 crores as
compared to previous year’s profit of Rs. 3,926 crores. Net profit of the
bank during the year 2012‐13 was Rs. 6,726 crores, increased by 30.17%.
The Net Non Performing Assets (NPA) to Net Advances stood at
0.63% for the year 2008‐09. It stood at 0.13% for the year ended 2009‐
10. It has improved from 0.13% in the previous year to 0.19% for the
year 2010‐11 and decreased to 0.18% in the year 2011‐12. For the year
2012‐13, Net Non Performing Assets (NPA) to Net Advances stood at
0.20%
Under bancassurance business, HDFC Bank has a joint venture

named HDFC Standard Life Insurance Co. Ltd. and HDFC Ergo General
Insurance Co. Ltd. HDFC Standard Life Insurance Co. Ltd. was established
in the year 2000. It became the first private life insurance company in
India. HDFC Ergo General Insurance was established in the year 2002. It

183

is a joint venture between HDFC Ltd. which is India’s housing finance
institution and ERGO International AG, the primary insurance entity of
Munich Re Group.
In the year 2008‐09, under life insurance segment, bank earned a
commission income of Rs. 327 crore from HDFC Standard Life Insurance
Co. Ltd. It earned a huge commission income of Rs. 534 crores in the
year 2009‐10 and Rs. 670 crores for the year 2010‐11. During the year
2011‐12, the income from life insurance business decreased significantly
to Rs. 456 crores from Rs.670 crores in previous year. In the year 2012‐
13 the bank recorded a commission income of Rs. 472 crores.
Under HDFC Ergo General Insurance Co. Ltd. HDFC Bank recorded a
commission income of Rs. 22 crores during the year 2008‐09. In the year
2009‐10, bank’s commission income increased to Rs. 54 crores from Rs.
22 crores in previous year and increased to Rs. 78 crores in the year
2010‐11. In the year 2011‐12, the bank recorded a commission income
of Rs. 110 crores and Rs. 126 crores for the year 2012‐13.

184

4.4.5 INDUSTRIAL CREDIT AND INVESTMENT CORPORATION
OF INDIA (ICICI) BANK
ICICI Bank was established by the Industrial Credit and Investment
Corporation of India, an Indian financial institution. It was formed in
1955 as a joint‐venture of the World Bank, India's public‐sector banks
and public‐sector insurance companies to provide project financing to
Indian industry.
Under bancassurance business, ICICI Bank has subsidiary named

ICICI Prudential Life Insurance Co. Ltd. and ICICI Lombard General
Insurance Co. Ltd. ICICI Prudential Life Insurance Co. Ltd. is a joint
venture between ICICI bank and Prudential Plc, a leading international
financial services group whose headquarters is in the United Kingdom. It
was established in December 2000 after receiving an approval from
Insurance Regulatory Development Authority (IRDA). ICICI Lombard
General Insurance Co. Ltd. was established in August 2001. It is a joint
venture between ICICI Bank Ltd. and Fairfax Financial Holding Ltd,
Canada. 5
The following table 4.4.5.1 shows the financial position of ICICI

5
http://en.wikipedia.org/wiki/ICICI_Bank
185

Table‐4.4.5.1
Financial position of ICICI Bank and income derived from its bancassurance business.

(Rs. in Crores)
Year Net Advances Deposits Net Dividend Net Profit % Net of ICICI ICICI
worth Interest NPA Prudential Lombard
income Life General
Insurance Insurance
Co. Ltd. Co. Ltd.
2008‐09 49,883 2,18,311 2,18,348 8,366 1,225 3,758 1.96% (‐780) 24

2009‐10 51,618 1,81,205 2,02,017 8,144 1,338 4,025 1.87% 258 144

2010‐11 55,091 2,16,366 2,25,602 9,017 1,613 5,151 0.94% 808 (‐80)
2011‐12 60,405 2,53,723 2,55,500 10,734 1,902 6,465 0.62% 1,384 (‐416)
2012‐13 66,706 2,90,249 2,92,614 13,866 2,307 8,325 0.64% 1,496 3.06
Source: Annual reports of ICICI Bank from 2008 to 2013.

186

Table 4.4.5.1 shows that the net worth of ICICI Bank for the year
2008‐09 was Rs. 49,883 crores and a growth of 3.48% for the year ended
2009‐10. It has grown from Rs. 51,618 crores in 2009‐10 to Rs. 55,091
crores in 2010‐11 i.e. an increase of 6.73%. There was a growth of 9.65%
in the year 2011‐12 and in the year 2012‐13, net worth increased from
Rs. 60,405 crores in previous year to Rs. 66,706 crores i.e. registering a
growth of 10.43%.
Advances decreased by ‐17% and earned Rs. 1, 81,206 crores for
year 2009‐2010 from Rs. 2, 18,311 crores of 2008‐09. The bank
registered a growth of 11.67% from Rs. 1, 81,205 crores of 2009‐10 to
Rs. 2, 16,366 crores of 2010‐11 and a growth of 17.27% from 2010‐11 to
2011‐12. Advances reached to Rs. 2, 90,249 crores registering a growth
of 14.4% in the year 2012‐13.
ICICI Bank’s total deposits decreased by ‐7.48% and earned Rs. 2,
02,017 crores for the year 2009‐2010 over previous year’s i.e. 2008‐09
deposits of Rs. 2,18,348 crores. It has grown by 11.67% to reach Rs. 2,
crores in the year 2011‐12. In the year 2012‐13, ICICI Bank’s total
Total net interest income of ICICI Bank showed that the growth
rate has decreased by ‐3.02% from Rs. 8,366 crores in year 2008‐09 to
Rs. 8,114 crores in the year 2009‐10. The bank registered a growth of
11.12% from 2009‐10 to 2010‐11. Year 2011‐12 showed a growth of
19.04% i.e. Rs. 10,734 crores over previous year’s interest income of Rs.
187

9,017 crores. It registered a growth of 29.18% for the year ended 2012‐
13 with Rs. 13,866 crores.
Dividend of Rs. 1,225 crores was recommended by the Board of
Directors of ICICI Bank for the year 2008‐09. It was Rs.1, 338 crores for
the year 2009‐10, Rs. 1,613 crores for the year 2010‐11 and Rs. 1,902
2012‐13 was Rs. 2,303 crores.
4025 crores in 2009‐10 from Rs. 3,758 crores in the previous year 2008‐
crores of 2010‐11. In the year 2011‐12 it has shown a significant growth
of 25.51% and earned a profit of Rs. 6,465 crores as compared to
previous year’s profit of Rs. 5,151 crores. Net profit of the bank has
increased by 28.77% from Rs. 6,465 crores in previous year 2011‐12 to
Rs. 8,325 crores during the year 2012‐13.
10. It has reduced from 1.87% in the previous year to 0.94% for the year
2010‐11 and also decreased to 0.62% in the year 2011‐12. For the year
0.64%
Under bancassurance business, ICICI Bank has subsidiary named

ICICI Prudential Life Insurance Co. Ltd. and ICICI Lombard General
Insurance Co. Ltd. In the year 2008‐09, under life insurance segment,
ICICI Life incurred a loss of Rs. ‐780 crores. In the year 2009‐10, it earned
188

a profit of Rs. 256 crores as compared to the loss of Rs. ‐780 crores in
the year 2008‐09. Profit increased from Rs. 256 crores in the year 2009‐
10 to Rs. 808 crores in 2010‐11. In the year 2011‐12 it earned a profit of
Rs. 1,384 crores from Rs 808 crores of previous years i.e. 2010‐11. In the
year 2012‐13 the bank recorded a commission income of Rs. 1,496
crores.
Under ICICI Lombard General Insurance Co. Ltd., the bank made a
profit of Rs. 24 crores during the year 2008‐09. In the year 2009‐10,
profit increased from Rs. 24 crores in 2008‐09 to Rs. 144 crores in 2009‐
10. ICICI Lombard General Insurance Co. Ltd. incurred a loss of Rs. ‐80
crores in the year 2010‐11 as compared to a profit of Rs. 144 crores. Net
loss increased from Rs. ‐80 crores in year 2010‐11 to Rs. ‐416 crores in
the year 2011‐12. In the year 2012‐13 the bank recorded a profit of Rs.
3.06 crores as compared to the loss of Rs. ‐416 crores in the year 2011‐
12.
189

4.4.6 INDUSTRIAL DEVELOPMENT BANK OF INDIA (IDBI)
The Industrial Development Bank of India (IDBI) was established on
1st July 1964 under an Act of Parliament as a wholly owned subsidiary of
the Reserve Bank of India. In 16 February 1976, the ownership of IDBI
was transferred to the Government of India and it was made the
principal financial institution for coordinating the activities of institutions
engaged in financing, promoting and developing industry in the country.
IDBI Bank offers Life Insurance Solutions to suit various customers
segments through IDBI Federal Life Insurance Co. Ltd. It was formed on
March 2008. It is a joint venture between three financial companies i.e.
IDBI Bank, Federal Bank and European insurer Ageas formally known as
Fortis. The bank has also entered into an agreement with Bajaj Allianz
General Insurance Co. Ltd. to provide Non Life or General insurance
requirement from 2008. 6
The following table 4.4.6.1 shows the financial position of IDBI

6
http://en.wikipedia.org/wiki/IDBI_Bank
190

Table‐4.4.6.1
Financial position of IDBI Bank and income derived from its bancassurance business.

(Rs. in Crores)
Year Net Advances Deposits Net Dividend Net Profit % Net of IDBI Bajaj Allianz
worth Interest NPA Federal Life General
income Insurance Insurance
Co. Ltd Co. Ltd.
2008‐09 9,564 1,03,444 1,12,401 1,326 181 859 0.87% 6 2

2009‐10 10,293 1,38,202 1,67,667 2,267 217 1,031 1.00% 21 2

2010‐11 14,570 1,57,098 1,80,487 4,329 345 1,650 1.06% 33 4
2011‐12 19,391 1,80,572 2,10,493 4,545 389 2,032 1.61% 31 3
2012‐13 21,236 1,96,306 2,27,116 5,373 467 1,882 1.58% 45 4
Source: Annual reports of IDBI Bank from 2008 to 2013.

191

Table 4.4.6.1 shows that the net worth of IDBI Bank for the year
crores in 2010‐11 i.e. an increase of 41.56%. There was a growth of
33.09% in the year 2011‐12 and in the year 2012‐13, net worth
increased from Rs. 19,391 crores in previous year to Rs. 21,236 crores
Advances increased by 33.60% and earned Rs. 1, 38,202 crores for
registered a growth of 13.67% from Rs. 1,38,202 crores of 2009‐10 to Rs.
1, 57,098 crores of 2010‐11 and a growth of 14.94% from 2010‐11 to
of 8.71% in the year 2012‐13.
IDBI Bank’s total deposits amounted to Rs. 1, 67,667 crores as on
March 2010 showing a growth of 49. 17% over previous year’s i.e. 2008‐
09 deposits of Rs. 1, 12,401 crores. It has grown by 7.65% to reach Rs. 1,
crores in the year 2011‐12. In the year 2012‐13, IDBI Bank’s total
Total net interest income of IDBI Bank has shown a strong growth
the year 2009‐10. The bank registered a robust growth of 90.92% from
2009‐10 to 2010‐11. Year 2011‐12 showed a moderate growth of 4.99%
192

Rs. 5,373 crores.
Directors of IDBI Bank for the year 2008‐09. It was Rs. 217 crores for the
year 2009‐10, Rs. 345 crores for the year 2010‐11 and Rs. 389 crores for
the year 2011‐12. Dividend proposed for the year ended 2012‐13 was
Rs. 467 crores.
Net profit IDBI Bank increased registering a growth by 20.20% to Rs.
crores of 2010‐11. In the year 2011‐12 it has shown a significant growth
of 23.15% and earned a profit of Rs. 2,032 crores as compared to
previous year’s profit of Rs. 1,650 crores. Net profit of the bank has
decreased as compared to the previous years of Rs. 2,032 crores and
earned a profit of Rs. 1,882 crores during the year 2012‐13. It has
reduced by ‐7.38%.
year 2008‐09. It stood at 1% for the year ended 2009‐10. It has
moderately increased from 1% in the previous year to 1.06% for the year
2010‐11. It increased to 1.61% in the year 2011‐12. For the year 2012‐
13, Net Non Performing Assets (NPA) to Net Advances stood at 1.58%.
Under bancassurance business, IDBI Bank offers life insurance

solution to various customers through IDBI Federal Life Insurance Co. Ltd
and also has a corporate agent Bajaj Allianz General Insurance Co. Ltd for
193

general insurance. In the year 2008‐09, the bank earned a net profit of
Rs. 6 crores from IDBI Federal Life Insurance Co. Ltd. It earned a huge
profit of Rs. 21 crores in the year 2009‐10 and Rs. 33 crores for the year
2010‐11. During the year 2011‐12, the profit from life insurance business
decreased to Rs. 31 crores from Rs. 33 crores in previous year. In the
year 2012‐13 the bank recorded a profit of Rs. 45 crores.
Under Bajaj Allianz General Insurance Co. Ltd. the Bank recorded a
Net profit of Rs. 2 crores during the year 2008‐09 which remained the
same for the year 2009‐10. In year 2010‐11 bank’s profit increased to Rs.
4 crores from Rs. 2 crores in previous year and decreased to Rs. 3 crores
in the year 2011‐12. The bank recorded a commission income of Rs. 4
crores for the year 2012‐13.
194

4.4.7 ORIENTAL BANK OF COMMERCE (OBC)
Oriental Bank of Commerce (OBC) was founded by Late Rai
Bahadur Lala Sohan Lal, in Lahore, Pakistan. Within four years of coming
into existence, the Bank had to face partition and the Registered Office
had to be shifted from Lahore to Amritsar. The bank was nationalized on
15th April 1980.
OBC offers life insurance Solutions for various customers through

Canara HSBC OBC Life Insurance Co. Ltd and for general insurance
products through Oriental Insurance Co. Ltd. It started its Bancassurance
business from the year 2009. 7
The following table 4.4.7.1 shows the financial position of OBC Bank
and the income derived from bancassurance business.

7
http://en.wikipedia.org/wiki/OBC
195

Table‐4.4.7.1
Financial position of Oriental Bank of Commerce Bank and income derived from its bancassurance
business.

(Rs. in Crores)
Year Net Advances Deposits Net Dividend Net Profit % Net of Canara Oriental
worth Interest NPA HSBC OBC Insurance
income Life Co. Ltd.
Insurance
Co. Ltd.
2008‐09 7,403 68,500 98,378 1,997 183 758 0.65% ‐ ‐

2009‐10 8,238 83,489 1,20,257 2,904 278 1,135 0.76% 37 3

2010‐11 11,097 95,908 1,39,054 4,177 303 1,503 0.98% 19 3
2011‐12 11,943 1,11,978 1,55,965 4,215 231 1,142 2.21% 14 4
2012‐13 12,776 1,28,955 1,75,898 4,701 268 1,328 2.27% 13 6
Source: Annual reports of OBC Bank from 2008 to 2013.

196

Table 4.4.7.1 shows that the net worth of OBC bank for the year
crores in 2010‐11 i.e. an increase of 34.71%. There was a growth of
7.62% in the year 2011‐12 and in the year 2012‐13, net worth increased
from Rs. 11,943 crores in previous year to Rs. 12,776 crores i.e.
registering a growth of 6.98%.
Advances of OBC increased by 21.88% and earned Rs. 83,489
crores for year 2009‐2010 from Rs. 68,500 crores of 2008‐09. The bank
registered a growth of 14.87% from Rs. 83,489 crores of 2009‐10 to Rs.
95,908 crores of 2010‐11 and a growth of 16.76% from 2010‐11 to 2011‐
12. Advances reached to Rs. 1, 28,955 crores registering a growth of
15.16% in the year 2012‐13.
OBC Bank’s total deposits amounted to Rs. 1, 20,258 crores as on
09 deposits of Rs. 98,369 crores. It has grown by 15.63% to reach Rs. 1,
crores in the year 2011‐12. In the year 2012‐13, OBC Bank’s total
Total net interest income of OBC has shown a robust growth of
year 2009‐10. The bank registered a strong growth of 43.68% from 2009‐
10 to 2010‐11. Year 2011‐12 showed a very slight growth of 0.92% i.e.
Rs. 4,215 crores over previous year’s interest income of Rs. 4,177 crores.
197

It registered a growth of 11.51% for the year ended 2012‐13 with Rs.
4,701 crores.
Directors of OBC Bank for the year 2008‐09. It was Rs. 278 crores for the
year 2009‐10, Rs. 303 crores for the year 2010‐11 and Rs. 230 crores for
Rs. 268 crores.
Net profit increased registering a growth by 49.61% to Rs. 1,135
crores in 2009‐10 from Rs. 758 crores in the previous year 2008‐09. It
increased by 32.45% from Rs. 1,135 crores in 2009‐10 to Rs. 1,503 crores
of 2010‐11. In the year 2011‐12 it has shown a reduction of ‐24.04% and
earned a profit of Rs. 1,142 crores as compared to previous year’s profit
of Rs. 1,503 crores. Net profit of the bank has increased by 16.29% as
compared to the previous years of Rs. 1,142 crores and earned a profit
of Rs. 1,328 crores during the year 2012‐13.
moderately increased from 0.76% in the previous year to 0.98% for the
year 2010‐11. It increased to 2.21% in the year 2011‐12. For the year
2.27%
Under bancassurance business, OBC offers life insurance Solutions
to suit various customers segments through Canara HSBC OBC Life
Insurance Co. Ltd. and for general insurance products under Oriental
198

Insurance Co. Ltd. In the year 2009‐10, the bank earned a commission
income of Rs. 37 crores from Canara HSBC OBC Life Insurance Co. Ltd. It
earned an income of Rs. 19 crores in the year 2010‐11 and Rs. 14 crores
for the year 201‐12. During 2012‐13 the bank recorded an income
commission of Rs. 13 crores.
Under Oriental Insurance Co. Ltd. the Bank recorded a commission
of Rs. 3 crores during the year 2009‐10 which remained the same for the
year2010‐11. In year 2011‐ 12 bank’s profit increased to Rs. 4 crores
from Rs. 3 crores in previous year. The bank recorded a commission
income of Rs. 6 crores for the year 2012‐13.
199

4.4.8 STATE BANK OF INDIA (SBI)
State Bank of India (SBI) is a multinational banking and financial

services company with its headquarters in Mumbai, Maharashtra. The
bank traces its ancestry to British India, through the Imperial Bank of
India, to the founding in 1806 of The Bank of Calcutta, making it the
oldest commercial bank in the Indian Subcontinent. Bank of Madras
merged into the other two presidency banks i.e. Bank of Calcutta and
Bank of Bombay, to form the Imperial Bank of India, which in turn
became the State Bank of India.
Government of India nationalized the Imperial Bank of India in
1955, with Reserve Bank of India taking a 60% stake, and renamed it the
State Bank of India. In 2008, the government took over the stake held by
the Reserve Bank of India.
Under bancassurance business, State Bank of India has subsidiary

named SBI Life Insurance Co. Ltd. and SBI General Insurance Co. Ltd. SBI
Life Insurance Co. Ltd. is a joint venture between SBI and BNP Paribas. It
was launched in the year 2001. SBI General Insurance Company Ltd. is a
joint venture between SBI and Insurance Australia Group (IAG). It was
launched in the year 2010. 8
The following table 4.4.8.1 shows the financial position of State
Bank of India and the income derived from bancassurance business.

8
http://en.wikipedia.org/wiki/State_Bank_of_India
200

Table‐4.4.8.1

Financial position of State Bank of India and income derived from its bancassurance business.

(Rs. in Crores)
Year Net worth Advances Deposits Net Dividend Net Profit % Net of SBI Life SBI
Interest NPA Insurance General
income Co. Ltd. Insurance
Co. Ltd.

2008‐09 57,948 5,48,503 7,42,073 20,873 1,841 9,121 1.76% (‐26) ‐

2009‐10 65,949 6,31,914 8,04,116 23,671 1,905 9,166 1.79% 276 ‐

2010‐11 64,986 7,56,719 9,33,933 32,526 1,906 8,265 1.72% 366 (‐27)
2011‐12 83,951 8,67,579 10,43,647 43,291 2,349 11,707 2.07% 556 (‐95)
2012‐13 98,884 10,45,617 12,01,740 44,331 2,839 14,105 1.81% 622 (‐145)
Source: Annual Report of SBI Bank from 2008 to 2013

201

Table 4.4.8.1 shows that the net worth of SBI Bank for the year
ended 2009‐10. It has reduced slightly by ‐1.46% i.e. from Rs. 65,949
crores in 2009‐10 to Rs. 64,986 crores in 2010‐11. There was a growth of
29.18% in the year 2011‐12 and in the year 2012‐13, net worth
increased from Rs. 83,951 crores in previous year to Rs. 98,884 crores
of 20.52% in the year 2012‐13.
SBI Bank’s total deposits amounted to Rs. 8, 04,116 crores as on
March 2010 showing a growth of 8.36% over previous year’s i.e. 2008‐09
deposits of Rs. 7, 42,073 crores. It has grown by 16.14% to reach Rs.
1, 58,093 crores and growth rate of 15.24% over previous year.
Total net interest income of SBI has shown an increase of 13.41%
from Rs. 20,873 crores in year 2008‐09 to Rs. 23,671 crores in the year
2009‐10. The bank registered a robust growth of 37.41% from 2009‐10
to 2010‐11. Year 2011‐12 showed a growth of 33.10% i.e. Rs. 43,291
202

registered a slight growth of 2.40% for the year ended 2012‐13 with Rs.
44,331 crores.
Dividend of Rs. 1,841 crores was recommended by the Board of
Directors of SBI for the year 2008‐09. It was Rs. 1,905 crores for the year
2009‐10, Rs. 1,906 crores for the year 2010‐11 and Rs. 2,349 crores for
Rs.2, 839 crores.
Net profit increased registering a growth by 0.49% to Rs. 9,166
crores in 2009‐10 from Rs. 9,121 crores in the previous year 2008‐09. It
decreased by ‐9.83% from Rs. 9,121 crores in 2009‐10 to Rs. 8,265 crores
of 2010‐11. In the year 2011‐12 it has shown a increase of 41.66% and
earned a profit of Rs. 11,707 crores as compared to previous year’s
profit of Rs. 8,265 crores. Net profit of the bank has increased by 20.48%
as compared to the previous years of Rs. 11,707 crores and earned a
profit of Rs. 14,105 crores during the year 2012‐13.
10. It has slightly reduced from 1.79% in the previous year to 1.72% for
the year 2010‐11. It increased to 2.07% in the year 2011‐12. For the year
1.81%
Under bancassurance business, State Bank of India has subsidiary

named SBI Life Insurance Co. Ltd. and SBI General Insurance Co. Ltd. In
the year 2009‐10, bank earned a Net profit of Rs. 276 crore from SBI Life
Insurance Co. Ltd. against the loss of ‐26 crores from previous year 2008‐
203

09. It earned a Net profit of Rs. 366 crores in the year 2010‐11 and Rs.
556 crores for the year 2010‐11. In the year 2012‐13 the bank recorded
a commission income of Rs. 622 crores.
SBI General Insurance Co. Ltd. completed its third year in full
operation in the financial year 2012‐13. The bank recorded a Net loss of
Rs. ‐27 crores during the year 2010‐11. In the subsequent years i.e.
2011‐12 and 2012‐13 they recorded a net loss of Rs. ‐95 crores and Rs.
‐145 crores respectively. The company is expected to turn around during
the financial year 2014‐15.
204

Table‐4.4.9
Growth Rate of Advances of selected Banks.
(In %)
Year ANDHRA CANARA CORPORATION HDFC BANK ICICI BANK IDBI BANK OBC SBI

BANK BANK BANK
2008‐09 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

2009‐10 27.19% 22.51% 30.28% 27.25% ‐ 17.00% 33.60% 21.88% 16.48%

2010‐11 26.42% 25.47% 37.41% 27.10% 11.67% 13.67% 14.87% 19.75%
2011‐12 17.09% 9.42% 15.68% 22.20% 17.27% 14.94% 16.76% 14.65%
2012‐13 18.00% 4.17% 18.16% 22.70% 14.40% 8.71% 15.16% 20.52%
Source: Annual Report of selected banks from 2008 to 2013.
205

Table 4.4.9 shows advances of Andhra bank increased by 27.19% i.e.
Rs. 56,505 crores for year 2009‐2010 from Rs. 44,428 crores of 2008‐09.
The bank registered a growth of 26.42% from 2009‐10 to 2010‐11 and a
growth of 17.09% from 2010‐11 to 2011‐12. Advances reached to Rs.
98,373 crores registering a growth of 18% in the year 2012‐13. The
growth rate of advances of Andhra Bank has significantly declined.
Advances of Canara bank increased by 22.51% i.e. Rs. 1, 69,335
crores for year 2009‐2010 from Rs. 1, 38,219 crores of 2008‐09. The
bank registered a growth of 25.47% from 2009‐10 to 2010‐11 and a
growth of 9.42% from 2010‐11 to 2011‐12. Advances reached to Rs. 2,
42,177 crores registering a moderate growth of 4.17% in the year 2012‐
13. The growth rate of advances of Canara Bank has gone down
drastically.
Advances of Corporation Bank increased by 30.28% i.e. Rs. 63,203
18.16% in the year 2012‐13. The growth rate of advances of Corporation
Bank has significantly gone down.
Advances of HDFC Bank increased by 27.25% i.e. Rs. 1, 25,831
1,59,983 crores of 2010‐11 and a growth of 22.2% from 2010‐11 to
206

of 22.7% in the year 2012‐13. The growth rate of advances of HDFC Bank
has slightly gone down.
Advances decreased by ‐17% and earned Rs. 1, 81,206 crores for
of 14.4% in the year 2012‐13. The growth rate of advances of ICICI Bank
has slightly gone down.
1, 57,098 crores of 2010‐11 and a growth of 14.94% from 2010‐11 to
of 8.71% in the year 2012‐13. The growth rate of advances of IDBI Bank
has considerably gone down.
Advances of OBC increased by 21.88% and earned Rs. 83,489
15.16% in the year 2012‐13. The growth rate of advances of OBC Bank
has moderately gone down.
Advances of SBI increased by 16.48% and earned Rs. 6, 31,914
crores for year 2009‐2010 from Rs. 5, 42,503 crores of 2008‐09. The
207

bank registered a growth of 19.75% from Rs. 5, 42,503 crores of 2009‐10
to Rs. 7, 56,719 crores of 2010‐11 and a growth of 14.65% from 2010‐11
to 2011‐12. Advances reached to Rs. 10, 45,617 crores registering a
growth of 20.52% in the year 2012‐13. The growth rate of advances of
SBI Bank has increased significantly.
208

Table‐4.4.10
Growth rate of deposits of selected Banks.
(In %)

BANK BANK BANK
2008‐09 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

2009‐10 30.81% 25.60% 25.34% 17.00% ‐ 7.48% 49. 17% 22.25% 8.36%

2010‐11 18.62% 25.28% 25.90% 27.10% 11.67% 7.65% 15.36% 16.14%
2011‐12 14.90% 11.25% 16.61% 18.30% 13.25% 16.63% 12.16% 11.75%
2012‐13 17.00% 8.80% 21.93% 20.10% 14.4% 7.90% 12.78% 15.24%
209

Table 4.4.10 shows Andhra Bank’s total deposits amounted to Rs.
77,688 crores as on March 2010 showing a growth of 30.81% over
previous year’s i.e. 2008‐09 deposits of Rs. 59,390 crores. It has grown
by 18.62% to reach Rs 92,156 crores in the year 2010‐11 and 14.90% to
reach Rs. 1, 05,851 crores in the year 2011‐12. In the year 2012‐13,
Andhra Bank’s total deposits amounted to Rs. 1, 23,796 crores showing
an addition of Rs. 17, 947 crores and growth rate of 17% over previous
year. The growth rate of deposits of Andhra Bank has significantly gone
down.
Canara Bank’s total deposits amounted to Rs. 2, 34,651 crores as on
09 deposits of Rs. 1, 86,893 crores. It has grown by 25.28% to reach Rs.
crores in the year 2011‐12. In the year 2012‐13, Canara Bank’s total
deposits amounted to Rs. 3, 55,856 crores showing an addition of Rs.28,
802 crores and growth rate of 8.8% over previous year. The growth rate
of deposits of Canara Bank has considerably gone down.
Corporation Bank’s total deposits amounted to Rs. 92,734 crores as
on March 2010 showing a growth of 25.34% over previous year’s i.e.
2008‐09 deposits of Rs. 73,984 crores. It has grown by 25.90% to reach
Rs. 1, 16,748 crores in the year 2010‐11 and 16.61% to reach Rs. 1,
36,142 crores in the year 2011‐12. In the year 2012‐13, Corporation
Bank’s total deposits amounted to Rs. 1, 66,005 crores showing an
addition of Rs. 29, 863 crores and growth rate of 21.93% over previous
year. The growth rate of deposits of Corporation Bank has slightly gone
down.
210

HDFC Bank’s total deposits amounted to Rs. 1, 67,404 crores as on
March 2010 showing a growth of 17% over previous year’s i.e. 2008‐09
crores in the year 2011‐12. In the year 2012‐13, HDFC Bank’s total
49,541 crores and growth rate of 20.1% over previous year. The growth
rate of deposits of HDFC Bank has increased significantly.
ICICI Bank’s total deposits decreased by ‐7.48% and earned Rs. 2,
02,017 crores for the year 2009‐2010 over previous year’s i.e. 2008‐09
deposits of Rs. 2,18,348 crores. It has grown by 11.67% to reach Rs. 2,
crores in the year 2011‐12. In the year 2012‐13, ICICI Bank’s total
rate of deposits of ICICI Bank has considerably increased.
IDBI Bank’s total deposits amounted to Rs. 1, 67,667 crores as on
March 2010 showing a growth of 49. 17% over previous year’s i.e. 2008‐
09 deposits of Rs. 1, 12,401 crores. It has grown by 7.65% to reach Rs. 1,
rate of deposits of IDBI Bank has reduced drastically.
OBC Bank’s total deposits amounted to Rs. 1, 20,258 crores as on
211

09 deposits of Rs. 98,369 crores. It has grown by 15.63% to reach Rs. 1,
crores in the year 2011‐12. In the year 2012‐13, OBC Bank’s total
rate of deposits of OBC Bank has significantly gone down.
SBI Bank’s total deposits amounted to Rs. 8, 04,116 crores as on
March 2010 showing a growth of 8.36% over previous year’s i.e. 2008‐09
deposits amounted to Rs. 12, 02,740 crores showing an addition of Rs. 1,
rate of deposits of SBI Bank has considerably increased.
212

Table‐4.4.11
Growth Rate of Net Interest Income of selected Banks.
(In %)

BANK BANK BANK
2008‐09 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐

2009‐10 34.90 20.41 30.71 13.01 ‐ 3.02 71.01 45.63 13.41

2010‐11 46.76 37.72 33.00 25.71 11.12 90.92 43.68 37.41
2011‐12 16.71 ‐ 1.71 7.05 16.63 19.04 4.99 0.92 33.10
2012‐13 ‐ 0.06 2.47 8.86 28.58 29.18 18.22 11.51 2.40

213

Table 4.4.11 shows that total net interest income of Andhra Bank
has shown a growth of 34.90% from Rs. 1,627 crores in year 2008‐09 to
Rs. 2,195 crores in the year 2009‐10. The bank showed a robust growth
of 46.76% from 2009‐10 to 2010‐11. Year 2011‐12 registered a growth of
3,221 crores. It decreased by ‐0.06% and earned Rs. 3,757 crores for the
year ended 2012‐13.
Total net interest income of Canara Bank has shown a growth of
year 2009‐10. The bank showed a strong growth of 37.72% from 2009‐
10 to 2010‐11. In the year 2011‐12, growth rate decreased by ‐1.71% i.e.
7,879 crores.
Total net interest income of Corporation Bank has shown a growth
the year 2009‐10. The bank registered a growth of 33% from 2009‐10 to
2010‐11. Year 2011‐12 showed a slight growth of 7.05 % i.e. Rs. 3,147
registered a growth of 8.86% for the year ended 2012‐13 with Rs 3,425
crores.
Total net interest income of HDFC Bank has shown a growth of
year 2009‐10. The bank registered a growth of 25.71% from 2009‐10 to
2010‐11. Year 2011‐12 has shown a reduction of 16.63% i.e. Rs. 12,297
214

registered a growth of 28.58% for the year ended 2012‐13 with Rs.
15,811 crores.
Total net interest income of ICICI Bank showed that the growth
rate has decreased by ‐3.02% from Rs. 8,366 crores in year 2008‐09 to
Rs. 8,114 crores in the year 2009‐10. The bank registered a growth of
11.12% from 2009‐10 to 2010‐11. Year 2011‐12 showed a growth of
9,017 crores. It registered a growth of 29.18% for the year ended 2012‐
13 with Rs. 13,866 crores.
Total net interest income of IDBI Bank has shown a strong growth
the year 2009‐10. The bank registered a robust growth of 90.92% from
2009‐10 to 2010‐11. Year 2011‐12 showed a moderate growth of 4.99%
Rs. 5,373 crores.
Total net interest income of OBC has shown a robust growth of
year 2009‐10. The bank registered a strong growth of 43.68% from 2009‐
10 to 2010‐11. Year 2011‐12 showed a very slight growth of 0.92% i.e.
4,701 crores.
Total net interest income of SBI has shown an increase of 13.41%
from Rs. 20,873 crores in year 2008‐09 to Rs. 23,671 crores in the year
215

2009‐10. The bank registered a robust growth of 37.41% from 2009‐10
to 2010‐11. Year 2011‐12 showed a growth of 33.10% i.e. Rs. 43,291
registered a slight growth of 2.40% for the year ended 2012‐13 with Rs.
44,331 crores.
216

4.5 ANALYSIS AND INTERPRETATION OF PRIMARY DATA
COLLECTED:
To study the need of bancassurance, the researcher felt the need to

conduct a survey analysis among the customers as well as the bank
employees of eight different banks in the Vadodara district. The banks
which have been selected as simple random samples for this purpose are
Andhra Bank, Canara Bank, Corporation Bank, HDFC Bank, ICICI Bank, IDBI
Bank, Oriental Bank of Commerce, and State Bank of India. The
questionnaires were filled by 115 different customers and 30 employees of
the above mentioned banks. The sample size and the result of survey
conducted are as under:
 Analysis of responses on questionnaires from customers of the
banks.
 Analysis of responses on questionnaires from employees of the
banks.
4.5.1 ANALYSIS OF RESPONSES ON QUESTIONNAIRES FROM

CUSTOMERS OF THE BANKS:
This questionnaire has been filled by 115 customers of eight different

banks. The collected data from such survey has been put in pie-charts and
bar graphs. This has been produced by using the tabulated data, which has
been incorporated at appropriate places in the analytical interpretative text
which has been drawn below.
217
Table - 4.5.1.1 Respondent’s profile.
Gender Number Percentage
Male 60 52%
Female 55 48%
TOTAL 115 100%
Age: 23 20%
21-30 30 26%
31-40 32 28%
41-50 16 14%
51-60 14 12%
60 above
TOTAL 115 100%
Education:
School level 4 3%
Graduates 58 51%
Post graduates 37 33%
Doctorates 2 1%
Others 14 12%
TOTAL 115 100%
Annual Income:
2-4 lakhs 19 17%
4-6 lakhs 32 27%
6-8 lakhs 26 23%
8-10 lakhs 20 17%
10 lakhs above 18 16%
TOTAL 115 100%
218
Table - 4.5.1.1 states that the total sample size of the respondents
for the quantitative study through questionnaires were 115, out of which
60 were males and 55 were females. Analysis of the age, education and
income of respondents are done as under:
Table - 4.5.1.2 Age of the respondents.
Age 21-30 years 31-50 years 51 years Total

above
No of users/Total no. 23 62 30 115
Percentage 20% 54% 26% 100%
Out of total 115 customers surveyed, 54% are those between 31-50
years, 26% customers are of the age above 51 years and remaining 20% are
of age group 21-30 years. It is observed that the major portion of the
customers involved i.e. 54% are those between the age of 31-51 yrs.
219
Chart - 4.5.1.2 Age of the respondents.
Age of the customers
20%
26% 21-30 years
31-50 years
51 years above
54%
Table - 4.5.1.3 Educational background of the customers.
Education School Graduation PG and Total

above
Percentage 5% 50% 45% 100%
220
Chart - 4.5.1.3 Educational background of the customers.
Educational backound of the

customers
5%
45%
School
Graduation
50%
PG and above
The chart clearly reveals that maximum number of customers in the

banks out of total educational slab is 50%, who are graduate respondents.
45% of the customers are post graduates and only 5 % of the bank
customers who are school students.
221
Table - 4.5.1.4 Annual income of the customers of the bank.
Annual Income 2-6 lakhs 6-10 lakhs 10 lakhs Total

above
Percentage 43% 42% 15% 100%
Chart - 4.5.1.4 Annual income of the customers of the bank.
Income of the customers
15%
43%
2-6 lakhs
42% 6-10 lakhs

Above 10 lakhs
222
Table 4.5.1.4 and diagram are the results of annual Income of the
respondents. is 43% of the customers have invested in the banking business
having annual Income between 2-6 lakhs; 42% are having annual income
between 6-10 lakhs and 10 lakhs and above have 15% annual income. The
customers are willing to avail many services like lockers and safe deposits
systems and other products and services from banks. There is a good
prospect to market many properties related general insurance policies.
Table - 4.5.1.5 Awareness of bancassurance among the

customers.
Awareness Yes No Total
No of users/Total no. 69 46 115
Percentage 60% 40% 100%
Among those who were surveyed, 60% of the respondents were aware
that their banks provide bancassurance. They knew with which insurance
company their banks have tie-ups. Also they were aware about various
policies provided by their banks. However, 40% of the respondents were
amused with the term bancassurance and didn’t know anything about it
and the services provided by the banks.
223
Chart - 4.5.1.5 Awareness of bancassurance among the
customers.
Awareness among the customers
40%
Yes
60%
No
Table - 4.5.1.6 Insurance policy purchased by the customers from

their banks.
Insurance policy taken Yes No Total

from the banks
224
Chart - 4.5.1.6 Insurance policy purchased by the customers from
their banks.
Insurance policy purchased by the

customers from the banks
44% 56%
Yes
No
Among the respondents who were surveyed, there were only 56%
people who had taken insurance policy from their respective banks.
Remaining 44% respondents did not opt to take a policy from their banks.
225
Table - 4.5.1.7 Reasons for buying insurance products from
banks instead of agents.
Reasons for taking Insurance Number Percentage

from banks
Personal relationship 90 78%
Trust 102 89%
Convenience 83 72%
Communication 65 57%
Financial soundness 75 65%
Expertise 80 70%
Service quality 90 78%
*Note: Multiple Responses
From the above table it is clearly known that the banks are providing
the finest service quality and they are maintaining customer relationship
management for the bancassurance. More than 80% of the customers have
trusted their banks. This shows that there is a huge opportunity for
bancassurance business in India.
226
Chart - 4.5.1.7 Reasons for buying insurance products from
banks instead of agents.
100% 89%
90%
78% 78%
80% 72% 70%
70% 65%
57%
60%
50%
40%
30%
20%
10%
0%
Table - 4.5.1.8 Choice of distribution channels preferred by the

customers.
Distribution Agents Insurance Banks Brokers Total

channel companies
No of users/ 56 28 24 7 115
respondents
Percentage 49% 24% 21% 6% 100%
227
Chart - 4.5.1.8 Choice of distribution channels preferred by the
customers.
Mode of distribution channels
6%
21%
49%
24% Brokers
Agents
Insurance Co.
Banks
From the above table it is observed that 49% customers preferred

agents because they provide personalized services. 24% took insurance
from companies because of their trust on the company. 21% said they
would buy insurance from banks because of the brands name and their
trust on banks. Only 6% said that they would buy insurance from brokers.
228
Table- 4.5.1.9 Types of insurance products taken from the banks
by the customers.
Types of insurance products Number Percentage
Vehicle insurance 115 100%
Life insurance 90 78%
Health insurance 82 71%
Pension insurance 26 23%
Unit linked insurance 82 71%
*Note: Multiple Responses.
It has been observed from the above table that almost all the
customers are availing insurance products from the banks. The highest
usage rates are for vehicle and life insurance products. This could be one of
the facts that vehicle insurance is a chief requirement in India and life
insurance offers both security cover as well as tax benefits.
229
Chart - 4.5.1.9 Types of insurance products taken from the banks
by the customers.
120%
100%
100%
78%
80%
71% 71%
60%
40%
23%
20%
0%
Vehicle Life Health Pension Unit
Insurance Insurance Insurance Insurance Linked
Insurnace
230
Table - 4.5.1.10 Sources of information regarding bancassurance
Source Number Percentage
Advertisement 95 83%
Bank employees 82 71%
Friends 65 57%
Internet 78 68%
Published materials like 105 91%

brochures etc.
From the above table it is observed that advertisements are one of

the major sources of information for the customers. Better trained bank
employees as well as the informative marketing techniques can give boost
to the business. The banks that offer bancassurance as one of their
products should think of the new media channels which may help the banks
to reach out to more customers.
231
Chart - 4.5.1.10 Sources of information regarding bancassurance.
100%
91%
90% 83%
80%
71%
68%
70%
60% 57%
50%
40%
30%
20%
10%
0%
Advertisement Bank Friends Internet published
Employees materials like
brochers
232
Table - 4.5.1.11 Types of banks that would excel in
bancassurance.
Types of banks Number Percentage
Public banks 48 38%
Private banks 104 90%
Foreign banks 81 70%
We can infer from the survey that 90% respondents said that private
sector banks would excel in bancassurance because of their powerful
selling policies and they provide quality services to the customers. 70%
votes were given to foreign banks because they have proper management
and aggressive selling strategies. The public sector banks were given the
least votes i.e. 38% because of their laid back attitude towards their work.
233
Chart - 4.5.1.11 Types of banks that would excel in
bancassurance.
100%
90%
90%
80%
70%
70%
60%
50%
38%
40%
30%
20%
10%
0%
Public Private Foreign
Banks Banks Banks
Table - 4.5.1.12 Future of bancassurance in India.
Future of bancassurance Yes No Total

in India
234
From the above findings, 90% of the respondents said that they
believe that bancassurance has a very bright future because there is an
immense potential for the insurance industry in India. But 10% believe that
due to the emergence of the new technology the visits in the branches are
going to be less because of ATM’s and e-banking. So there is not much
scope for it.
Chart - 4.5.1.12 Future of bancassurance in India.
Future of bancassurance in India
10%
90%
Yes
No
235
4.5.2 ANALYSIS OF RESPONSES ON QUESTIONNAIRES FROM
EMPLOYESS OF THE BANKS:
This questionnaire has been filled by 30 employees working in eight

different banks. The collected data from such survey has been put in pie-
charts and bar graphs which have been produced by using the tabulated
data, have been incorporated at appropriate places in the analytical
interpretative text which has been drawn below.
Table 4.5.2.1 Banks involvement in the activity of

bancassurance.
Bank’s involvement in Yes No Total

bancassurance
No of respondents 22 8 30
Percentage 73.3% 26.7% 100%
Out of total 30 bank employees surveyed, 73.3% of employees are

involved in the activity of bancassurance and remaining 26.7% employees
are not involved in the activity of bancassurance. It is observed that, major
portion of the employees area involved in the activity of bancassurance.
236
Chart 4.5.2.1 Banks involvement in the activity of
bancassurance.
Involvement in Bancassurance
26.70%
Yes
No
73.30%
Table 4.5.2.2 Training given to bank employees for

bancassurance.
Training given for Yes No Total

bancassurance
Percentage 36.4% 63.6% 100%
237
Out of 30 employees, 36.4% employees have been given formal
training for cross-selling of bancassurance products and the remaining
63.6% have not been given any training for bancassurance. It has been
observed that, maximum number of employees have not been given
training for cross-selling of bancassurance products.
Chart 4.5.2.2 Training given to bank employees for

bancassurance.
Training given for

Bancassurance
36.40%
63.60%
Yes
No
238
Table 4.5.2.3 Diversification of revenue with the help of
bancassurance.
Diversification of Yes No Total

revenue with the help
of bancassurance
Chart 4.5.2.3 Diversification of revenue with the help of

bancassurance.
Diversification of Revenues
20%
80%
Yes
No
239
Out of 30 employees, it is observed that major portion i.e. 80%
employees told that bancassurance is helping in the diversification of
revenue to the bank and the remaining 20% of the employees say that it is
not helping in the diversification of revenue to the banks.
Table 4.5.2.4 Increase in the customer loyalty.
Loyalty of customer Yes No Total

employees told that bancassurance is helping in increasing the customer
loyalty to the banks and the remaining 10% of the employees say that it is
not helping in increasing the customer loyalty to the banks.
240
Chart 4.5.2.4 Increase in the customer loyalty.
Increase in the customer's loyalty
10%
90%
Yes
No
Table 4.5.2.5 Bancassurance increases the total other income of

the banks.
Increasing total other Yes No Total

income
241
employees told that bancassurance is helping in increasing the total other
incomes of the banks and the remaining 30% of the employees say that it is
not helping in increasing the total other incomes of the banks.
Chart 4.5.2.5 Bancassurance increases the total other income of

the banks.
Increases the other total income
30%
70%
Yes
No
242
Table 4.5.2.6 Bancassurance increases the productivity of the
banks.
Increasing productivity Yes No Total
Chart 4.5.2.6 Bancassurance increases the productivity of the

banks.
Increasing productivity
20%
80%
Yes
No
243
employees told that bancassurance is helping in increasing the productivity
banks and the remaining 20% of the employees say that it is not helping in
increasing the productivity of the banks.
Table 4.5.2.7 The activity of bancassurance enriches the work

content of the banks.
Increasing productivity Yes No Total
Out of 30 employees, 82% employees told that their work content is

enriched by the activity of bancassurance and the remaining 18% of the
employees say that it is not enriched by the activity of bancassurance. It is
observed that maximum number of employees told that their work content
is enriched by the activity of bancassurance.
244
Chart 4.5.2.7 The activity of bancassurance enriches the work
content of the banks.
Enriches work content
18%
82%
Yes
No
245
4.5.2.8 Advantages of bancassurance as told by the employees:
For the last questions, i.e. advantages of bancassurance, the

employees told the following things:-
 It will increase the income of the bank as well as the income of the
staff by providing them the incentive of bancassurance or cross-
selling.
 No Non-Performing Assets (NPA) on account of death of the
borrower because entire outstanding loan amount will be
reimbursed by the insurance company.
 With the existing staff bank can do insurance business also. No extra
manpower is required.
 The bank staff will be motivated when there is no further scope in
their career progression.
 Bancassurance will bring in more customers to the bank.
246

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CHAPTER - 4

DATA ANALYSIS AND

further creates dissimilarity between public and private sector

employees of corporate customers. Usually, banks offer salary

The performance of both banks and insurance companies inter‐

Under bancassurance business, Andhra Bank along with Bank of

Year Net worth Advances Deposits Net Interest Dividend Net Profit % Net of IndiaFirst Life

2011‐12 7,479 83,642 1,05,851 3,759 358 1,345 0.91% 23

Corporation Bank has a tie up arrangement under bancassurance

Corporation Bank has a tie up arrangement under bancassurance

HDFC Bank was incorporated in 1994 by Housing Development

Under bancassurance business, HDFC Bank has a joint venture

Under bancassurance business, HDFC Bank has a joint venture

Under bancassurance business, ICICI Bank has subsidiary named

Under bancassurance business, ICICI Bank has subsidiary named

2011‐12 19,391 1,80,572 2,10,493 4,545 389 2,032 1.61% 31 3

2012‐13 21,236 1,96,306 2,27,116 5,373 467 1,882 1.58% 45 4

Under bancassurance business, IDBI Bank offers life insurance

OBC offers life insurance Solutions for various customers through

2011‐12 11,943 1,11,978 1,55,965 4,215 231 1,142 2.21% 14 4

2012‐13 12,776 1,28,955 1,75,898 4,701 268 1,328 2.27% 13 6

State Bank of India (SBI) is a multinational banking and financial

Under bancassurance business, State Bank of India has subsidiary

Under bancassurance business, State Bank of India has subsidiary

Year ANDHRA CANARA CORPORATION HDFC BANK ICICI BANK IDBI BANK OBC SBI

2011‐12 17.09% 9.42% 15.68% 22.20% 17.27% 14.94% 16.76% 14.65%

2012‐13 18.00% 4.17% 18.16% 22.70% 14.40% 8.71% 15.16% 20.52%

Year ANDHRA CANARA CORPORATION HDFC BANK ICICI BANK IDBI BANK OBC SBI

2011‐12 14.90% 11.25% 16.61% 18.30% 13.25% 16.63% 12.16% 11.75%

2012‐13 17.00% 8.80% 21.93% 20.10% 14.4% 7.90% 12.78% 15.24%

Year ANDHRA CANARA CORPORATION HDFC BANK ICICI BANK IDBI BANK OBC SBI

2011‐12 16.71 ‐ 1.71 7.05 16.63 19.04 4.99 0.92 33.10

2012‐13 ‐ 0.06 2.47 8.86 28.58 29.18 18.22 11.51 2.40

To study the need of bancassurance, the researcher felt the need to

4.5.1 ANALYSIS OF RESPONSES ON QUESTIONNAIRES FROM

This questionnaire has been filled by 115 customers of eight different

Gender Number Percentage

TOTAL 115 100%

TOTAL 115 100%

TOTAL 115 100%

TOTAL 115 100%

Table - 4.5.1.2 Age of the respondents.

Age 21-30 years 31-50 years 51 years Total

No of users/Total no. 23 62 30 115

Percentage 20% 54% 26% 100%

Age of the customers

Table - 4.5.1.3 Educational background of the customers.

Education School Graduation PG and Total

No of users/Total no. 6 57 52 115

Percentage 5% 50% 45% 100%

Educational backound of the

The chart clearly reveals that maximum number of customers in the

Annual Income 2-6 lakhs 6-10 lakhs 10 lakhs Total

No of users/Total no. 50 48 17 115

Percentage 43% 42% 15% 100%

Chart - 4.5.1.4 Annual income of the customers of the bank.

Income of the customers

42% 6-10 lakhs