BANKING SECTOR IN INDIA

__________________________
BY- ABHISHEK PRATAP SINGH
PGDM-2nd SEMESTER
 Introduction :-
 A banker or bank is a financial institution
whose primary activity is to act as a
payment agent for customers and to
borrow and lend money.
 An institution where one place and borrow
money and take care of financial affairs;
A branch office of such an institution.
 The first modern bank was founded in Italy
in Genoa in 1406.
 Cont……

 Banking dates back to 1786, the first bank

established in India, then the
nationalisation of banks in 1969 and
recently the liberalisation of the same
since 1991.
 The government's regular policy for Indian
bank since 1969 has paid rich dividends
with the nationalisation of 14 major private
banks of India.
TYPES OF BANKS IN INDIA

 Public Sector Banks in India.

 Private banking in India.
 Rural banking in India.
 Foreign Banks in India.
 Public Sector Banks in India
1. Allahabad Bank
11.Indian Bank
2. Andhra Bank 12.Indian Overseas Bank
3. Bank of Baroda 13.Oriental Bank of Comm
4. Bank of India erce
5. Bank of Maharastra 14.Punjab & Sind Bank
6. Canara Bank 15.Punjab National Bank
7. Central Bank of India 16.Syndicate Bank
8. Corporation Bank 17.UCO Bank
9. Dena Bank 18.Union Bank of India
10. IDBI Bank 19.United Bank of India
20.Vijaya Bank
Cont….
 State Bank of India
 State Bank of Bikaner & Jaipur
 State Bank of Hyderabad
 State Bank of Indore
 State Bank of Mysore
 State Bank of Saurastra
 State Bank of Travancore
 Private banking in India.
1. Bank of Punjab
2. Bank of Rajasthan 10.ICICI Bank
3. Catholic Syrian Ba 11.IndusInd Bank
nk 12.ING Vysya Bank
4. Centurion Bank 13.Jammu & Kashmir Ba
5. City Union Bank nk
6. Dhanalakshmi Ban 14.Karnataka Bank
k 15.Karur Vysya Bank
7. Development Credi 16.Laxmi Vilas Bank
t Bank
17.South Indian Bank
8. Federal Bank
18.United Western Bank
9. HDFC Bank
19.UTI Bank
Rural banking in India

1. Haryana State Cooperative Apex Bank Limited.

2. National Bank for Agriculture and Rural
Development (NABARD).
3. Sindhanur Urban Souharda Co-operative Bank.
4. United Bank of India.
 Foreign Banks in India
1. ABN-AMRO Bank
2. Abu Dhabi Commercial Bank
3. Bank of Ceylon
4. BNP Paribas Bank
5. Citi Bank
6. China Trust Commercial Bank
7. Deutsche Bank
8. HSBC
9. JPMorgan Chase Bank
10. Standard Chartered Bank
11. Scotia Bank
12. Taib Bank
Easy bank :-
 Automatic Teller Machine (ATM)
The first bank to introduce the ATM
concept in India was the Hongkong and
Shanghai Banking Corporation (HSBC). It
was in the year 1987. Now, almost every
commercial banks gives ATM facilities to
its customers.
 Cont……
 The first bank to cross 1,000 marks in
installing ATMs in India is ICICI.SBI is
following the concept of 'ATMs in
Quantity'. But Private Sector Banks have
taken the lead. ICICI, UTI, HDFC and IDBI
counts more than 50% of the total ATMs in
India.
Mobile Banking
 "The account that travels with you". This is
needed in today's fast business
environment with unending deadlines for
fulfillment and loads of appointments to
meed and meetings to attend. With mobile
banking facilities, one can bank from
anywhere, at anytime and in any condition
or anyhow.
 Cont……..

 The following operations can be

conducted through advanced mobile
phones.
 Bill payments
 Fund transfers
 Check balances
 Any many more which is also
available in SMS Banking

Short Message Service (SMS)
 Businesses are in move. So is to be your
money. You may have to thank the banks
which are providing banking at the send-of-
your-sms. The technology is at its highest
level to move your money while you are on
the move. If you are having non-WAP
enabled mobile handset, you can use the
facility of SMS services
 Cont…
 The following operations can be easily
used by the service provider:
 Balance enquiry
 Last three transactions
 Cheque payment status
 Cheque book request
 Statement request
 Demat - Free Balance Holding
 Demat - Last two Transactions
 Bill Payment
NET Banking

 Net Banking is conducting ones banking or bank

account online through a computer and a net
connection. The system is updated immediately
after every transaction automatically. In other
words it is said that it is updated 'on-line, real
time'. Through net banking one can check the
status of his/her account, place queries and also
can be facilitated with a wide range of
transactions simultaneously.
Cont….
 Net Banking has three basic features.
They are as follows:
 The banks offer only relevant information's
about their products and services to the mass.
 Few banks provide interaction facility between
the banks and its customers.
 Banks are coming up with arrangements of
utility payments, like telephone bills, electricity
bills, etc.
REGULATORY
RESERVE BANK OF INDIA
India’s Central Bank
Establishment
 Established on April 1,1935 with share capita of
five crores on recommendation of Hilton young
commission.
 RBI was Nationalized in year 1949.
 The Central Office of the Reserve Bank was
initially established in Calcutta but was
permanently moved to Mumbai in 1937
 The Governors of RBI is Dr. Duvvuri Subbarao.
Structure
 RBI Have 20 Directors.
 The Governor.
 Fore deputy Governor.
 One Govt.Official from Ministry of finance.
 Ten Nominate Director, Nominated by Govt.
 Four Director to represent Headquarter at Mumbai ,
Calcutta , Chennai &New Delhi.
 Appointed / Nominated for period of four year.
 RBI Office
 Head office in Mumbai
 Has 22 regional offices,
most of them in state capitals
Preamble
 The Preamble of the Reserve Bank of India
describes the basic functions of the Reserve
Bank as:
"...to regulate the issue of Bank Notes and
keeping of reserves with a view to securing
monetary stability in India and generally to
operate the currency and credit system of the
country to its advantage."
Main Function (Act 1934)
 Bank of Issue (under sec 22)

 RBI has sole right to issue one Rupees Notes and small
coins in country as agent of government.
RBI has separate issue department to issue currency note.
RBI maintain minimum reserve in Gold and Foreign
Exchange reserve of which almost 55% should be Gold.
Main Function (Act 1934)
 Banker to Government.

 RBI is banker ,agents and advisor of central

Government and all state Government in India.
 RBI helps the Government to float new loans and
to Manage Public.
 RBI makes loans and advances to the States
local authorities.
Main Function (Act 1934)
 Banker’s Bank & Lender of Last Report.

RBI maintains banking accounts of all schedule

bank.
 Every schedule bank have to keep cash
reserve a fix percentage of their aggregate
deposit liabilities.
 Bank always expect for help from RBI in time
of banking crisis.
Main Function (Act 1934)
 Controller of Credit
 RBI holds the cash reserves of all schedule
banks.
It holds credit operation of bank through
quantities.
RBI has power to ask bank or whole banking
system not to lend particular group.
Every bank have to get license from RBI for
banking operation .RBI also cancel this license.
Every bank give weekly return showing assets
and liabilities in details
Main Function (Act 1934)
 Custodian of foreign reserves.

 RBI responsible to official rate of exchange as

according term of I.M.F.
RBI reserves the international currency.
RBI observes relationship of Indian currency
with other International currency.
 List of Executives
 Governor
Dr. D Subbarao
 Deputy Governor
Dr. Rakesh Mohan, Smt. S. Gopinath, Smt. Usha
Thora
 Executive Directors
Sh. V.K. Sharma, Sh. C. Krishnan, Sh. Anand Sinha, Sh. V.S.
Das, Sh. G. Gopalkrishna, Sh. H.R. Khan, Sh. D.K. Mohanty
THANK YOU