Reliance Money Banking and Financial Services Analysis

In contrast to my previous article, Reliance Money Demat, Transfers, Commodities, Mutual Fund Investments, Insurance, one of my friends who is studying banking and finance is going to come up with a report naming it Reliance Money Financial Analyis. Overall, the report would be futuristic in approach with focus on prospects of Reliance Money’s possible conversion into a banking institution and the Indian banking industry two to three years down the line.

Tentative layout of the final report will be:

• Reliance Capital Brief

• Reliance Money Brief

• What is a bank and an NBFC

• Difference Between a bank and an NBFC

• NBFC formation; requisites, rules, and regulations

• Reasons for a NBFC conversion into a bank and the associated risks thereof

• Roadmap and requirements for an NBFC conversion into a bank

• Analysis:

? Does Reliance Money meets the above requirements

? Cost Benefit Analysis of the conversion

? Conversion experience of Kotak and IDBI

? Comparison of Reliance Money versus ICICI; product to product comparison

? Financial Statement Analysis of Reliance Money

? SWOT Analysis (Strengths, Weakness, Opportunities, and Threats Analysis

? BCG Matrix, GE Electric Matrix

? Past Scenario of Indian Banking Industry:

o Growth of the industry

o M&A in the past

o NBFC conversions into a bank

? Current Scenario in Indian Banking Industry

o Major Players

o Current trends

o Basel-II Norms implementation in India

o Level of preparedness of Indian Banks to implement these norms

o Would Reliance Money be able to comply with these norms

• Projection about the future of Indian Banking Industry in year 2011-12

? Liberalization of Indian Banking Industry

? Entry of large number of foreign financial institutions

? 2009-10: An Era of Mergers and Acquisitions in Banking Industry

? Preparations for the future 2011-2012

? Predictions on the likely M&A

? Position of Reliance Money in the Industry in 2011-2012

Conclusion: Recommendations, suggestions, projections on the future of Indian banking industry.

Apart from this, so far from the observation and experience of my friend who is a finance student, Reliance Money has not been able to provide good customer service due to poor back office operations. The client base has been increasing at a very rapid pace but the operations are not being able to meet this pace. This is the reason why Reliance Money is not being able to manage its customers well. This aspect will also be talked about in the report.

Overall, this project on Reliance Money will facilitate a better assessment of the current business of Reliance Money, NBFC conversions into banks apart from its prospects in future, learning of Basel II standards, present banking scenario in India, projections about the future M&A and relative position of Reliance Money in the banking and financial industry of India. The report would conclude comments, recommendations, and suggestions from my friend’s side for Reliance Money in getting the proposed conversion into a bank a successful one.