BANKING SYSTEM IN INDIA
TYPES OF BANKS IN INDIA
CENTRAL BANK COMMERCIAL BANKS CO-OPERATIVE BANKS OTHERS
(RBI)
PRIVATE SECTOR BANKS
STATE CO-OPERATIVE BANKS
PAYMENTS BANKS
PUBLIC SECTOR BANKS
URBAN CO-OPERATIVE BANKS SMALL FINANCE BANKS
REGIONAL RURAL BANKS
FOREIGN BANKS
PRIVATE SECTOR BANKS IN INDIA PUBLIC SECTOR BANKS IN INDIA FOREIGN BANKS IN INDIA
• ICICI BANK • BANK OF MAHARASHTRA • AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD.
• RBL BANK • INDIAN BANK • NATIONAL AUSTRALIA BANK
• IDFC BANK • BANK OF BARODA • WESTPAC BANKING CORPORATION
• SOUTH INDIAN BANK • CANARA BANK • BANK OF BAHRAIN AND KUWAIT
• IDBI BANK • STATE BANK OF INDIA • AB BANK LTD.
• TAMILNAD MERCANTILE BANK • CENTRAL BANK OF INDIA • CREDIT AGRICOLE CORPORATE AND INVESTMENT
• YES BANK • UNION BANK OF INDIA BANK
• AXIS BANK • INDIAN OVERSEAS BANK • SOCIETE GENERALE
• CITY UNION BANK • UCO BANK • DEUTSCHE BANK
• KARNATAKA BANK • PUNJAB AND SIND BANK • HSBC BANK
• DHANLAXMI BANK • BANK OF INDIA • PT BANK MAYBANK INDONESIA TBK
• KOTAK MAHINDRA BANK • PUNJAB NATIONAL BANK • MIZUHO BANK LTD.
• DCB BANK • SUMITOMO MITSUI BANKING CORPORATION
• KARUR VYSYA BANK • MUFG BANK LTD.
• FEDERAL BANK • COOPERATIVE RABOBANK
• HDFC BANK • BANK OF NOVA SCOTIA
• NAINITAL BANK • INDUSTRIAL AND COMMERCIAL BANK OF CHINA
• INDUSIND BANK • BNP PARIBAS
• BANDHAN BANK • DOHA BANK
• JAMMU AND KASHMIR BANK • QATAR NATIONAL BANK
• JSC VTB BANK
• SBERBANK
• UNITED OVERSEAS BANK LTD.
• FIRSTRAND BANK
FOREIGN BANKS IN INDIA contd.. SMALL FINANCE BANKS
• SHINHAN BANK • AU SMALL FINANCE BANK LTD.
• WOORI BANK • UTKARSH SMALL FINANCE BANK LTD.
• BARCLAYS BAK PLC. • FINCARE SMALL FINANCE BANK LTD.
• STANDARD CHARTERED BANK • UJJIVAN SMALL FINANCE BANK LTD.
• THE ROYAL BANK OF SCOTLAND • JANA SMALL FINANCE BANK LTD.
• AMERICAN BANKING EXPRESS CORPORATION • ESAF SMALL FINANCE BANK LTD.
• BANK OF AMERICA • SURYODAY SMALL FINANCE BANK LTD.
• CITI BANK • EQUITAS SMALL FINANCE BANK LTD.
• J.P MORGAN CHASE BANK • CAPITAL SMALL FINANCE BANK LTD.
• KOOKMIN BANK • NORTH EAST SMALL FINANCE BANK LTD.
• SBM BANK (INDIA) LTD.
• KEB HANA BANK
• INDUSTRIAL BANK OF KOREA
• BANK OF CEYLON
• DBS BANK INDIA LTD.
• CREDIT SUISSE AG.
• CTBC BANK CO. LTD.
• KRUNG THAI BANK PUBLIC CO. LTD.
• MASHREQ BANK PSC.
• FIRST ABU DHABI BANK PJSC
• EMIRATES BANK NBD
Bank Name Mar'22(In ₹ Crore)
State Bank of India 40,51,534
HDFC Bank 15,59,217
Punjab National Bank 11,46,218
Canara Bank 10,86,409
ICICI Bank
Bank of Baroda
10,64,572
10,45,939
Top 15 banks
Union Bank of India
Axis Bank
10,32,393
8,21,721
in India as
Bank of India
Indian Bank
6,27,896
5,93,618 per Deposits
Central Bank of India 3,42,692
Kotak Mahindra Bank 3,11,684
Induslnd Bank 2,93,681
Indian overseas bank 2,62,159
IDBI Bank 2,33,134
WHY IS THE ONE RUPEE
NOTE SINGED BY THE
FINANCE SECRETARY AND
NOT THE RBI GOVERNOR ?
• The one rupee note and coins are
issued by the Ministry of Finance.
• Ministry of Finance is responsible for
issuing Re. 1 notes and coins in India.
• Under Section 22 of the Reserve Bank
of India Act, the Reserve Bank of India
has sole authority to issue currency
notes of various denominations,
excluding one rupee note.
• The Ministry of Finance issues the
one rupee note and coins, which bear
the signature of the Finance
Secretary.
• Marginally raises GDP growth projection for FY24 to 6.5 per cent from an
earlier estimate of 6.4 per cent
• Permits operation of pre-sanctioned credit lines at banks to widen and
expand the footprint of Unified Payments Interface (UPI).
• To set up centralised portal to search across multiple banks for
unclaimed deposits
• Gulf Cooperation Council (GCC) countries to remain main source of
Highlights of remittances; inward remittances touch an all-time high of USD 107.2
billion in 2022
changes • Current Account Deficit (CAD) to remain moderate in Q4 FY23 and also in
the current fiscal year
• To maintain an agile approach to liquidity management
made by RBI • Has adopted a prudent approach toward regulations
on 6th April • RBI keeping a close watch on the turmoil in the banking sector in
developed countries
• Remains vigilant and ready to face challenges with a firm commitment to
price and financial stability
• To remain focused on the withdrawal of monetary policy accommodation
• To set up centralised portal to search across multiple banks for
unclaimed deposits
Types of Loan provided by Banks
Loan Type Purpose
1. Home Loan A home loan is a bank loan used to buy a house or property. Banks check creditworthiness and give pre-approved
amounts.
2. Personal Loan Personal loans are given to borrowers to help them with their requirements. borrowers can use the money from
this kind of loan in any way seem fit.
3. Education Loan Education loans can be used to pay fees and expenses, study abroad, or upgrade skills.
4. Car Loan A loan that allows you to purchase two and four wheelers for personal use. the lender loans the money while the
buyer must repay the loan in Equated Monthly Instalments (EMIs) over a specific tenure at a specific interest rate.
5. Small Business A small business loan is provided to Small and Medium Businesses to cater to urgent business needs.
loan
6. Gold Loan Gold loan (also called loan against gold) is a secured loan taken by the borrower from a lender by pledging their
gold articles (within a range of 18-24 carats) as collateral.
7. Loan against PPF Gold loan (also called loan against gold) is a secured loan taken by the borrower from a lender by pledging their
gold articles (within a range of 18-24 carats) as collateral.
• Banks play a crucial role in facilitating the smooth
flow of transactions in international trade.
• They provide financing options such as letters of
credit and trade finance, acting as intermediaries
Role of Bank between importers and exporters.
• Banks also manage risks associated with
in international trade, such as currency exchange rate
fluctuations and political risks.
International • Banks issue and manage letters of credit, which are
Trade widely used in international trade to ensure secure
and timely payments.
• Their involvement in international trade helps to
promote global trade and economic growth.
• Monetary Management – The formulation and seamless execution of monetary
policy are one of the Reserve Bank of India’s main responsibilities.
• The issuer of Currency – Currency management and issuance are critical central
banking functions. The Reserve Bank of India (RBI) is in charge of the country’s
currency design, manufacture, distribution, and overall management
• Banker and debt manager of the Government – The Reserve Bank of India (RBI) is in
charge of the government’s banking transactions. The Reserve Bank of India also
Role and holds the cash holdings of the Indian government.
• Banker to Banks – The RBI is also responsible for the settlement of interbank
Importance transactions.
• Financial Regulation and Supervision- RBI’s goal is to ensure the orderly
development and conduct of banking activities, as well as bank liquidity and
of RBI solvency.
• Developmental Role – It guarantees that the productive sectors of the economy
have access to sufficient credit and establishes organisations to support the
development of financial infrastructure.
• Oversees Market Operations – The Central Bank implements its monetary policy
through government securities, foreign exchange, and money market operations.
• Foreign Exchange Management – The foreign exchange market is regulated by the
Reserve Bank of India (RBI).
Ratio Name Formula
Current Ratio Current Asset/ Current Liability
Debt Service Coverage Ratio Net operating Income / Debt Service
Key ratios that bank Net Profit Margin Net Profit / Revenue from Operation
look at - Debt – Equity ratio Debt/Equity
Net Working Capital Current Assets – Current Liabilities
Quick Ratio (Current Assets – Inventory)/Current liabilities
Tangible Net worth Total Assets – Outside Liabilities
Adjusted Tangible Net worth Total Assets – Outside Liabilities-Intangible
Assets
TOL/TNW Total Outside Liabilities/ Total Net worth
Inventory Turnover Ratios Cost of Good Sold/Average Inventory
Working Capital Turnover Sales/Net Working Capital
Ratio
Receivables Turnover Ratio Credit Sales/Average Account receivable
Creditor Turnover Credit Purchase/Average Accounts Payable
