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    Shubham Narayan
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    The document provides an overview of the history of banks in India. It discusses the role of the Reserve Bank of India in regulating credit policies and issuing currency. It defines various interest rates like the bank rate, repo rate, and reverse repo rate that are set according to RBI policy. Reserve ratios like the CRR and SLR that commercial banks must maintain are also outlined. The banking value chain and extracts from the Union Budget related to banks are summarized. Emerging technologies, changing geographies, capital raising needs, and potential mergers and acquisitions are predicted for banks in the future.

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    The document provides an overview of the history of banks in India. It discusses the role of the Reserve Bank of India in regulating credit policies and issuing currency. It defines various interest rates like the bank rate, repo rate, and reverse repo rate that are set according to RBI policy. Reserve ratios like the CRR and SLR that commercial banks must maintain are also outlined. The banking value chain and extracts from the Union Budget related to banks are summarized. Emerging technologies, changing geographies, capital raising needs, and potential mergers and acquisitions are predicted for banks in the future.

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    Download as PDF, TXT or read online from Scribd
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    11 views2 pages

    Banks

    Uploaded by

    Shubham Narayan
    The document provides an overview of the history of banks in India. It discusses the role of the Reserve Bank of India in regulating credit policies and issuing currency. It defines various interest rates like the bank rate, repo rate, and reverse repo rate that are set according to RBI policy. Reserve ratios like the CRR and SLR that commercial banks must maintain are also outlined. The banking value chain and extracts from the Union Budget related to banks are summarized. Emerging technologies, changing geographies, capital raising needs, and potential mergers and acquisitions are predicted for banks in the future.

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    Download as PDF, TXT or read online from Scribd
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    Banking - Introduction

    HISTORY OF BANKS IN INDIA


    RBI acts as the regulator and frames credit policies and issues currencies to other banks in the country. Some of the terms in inline with RBI monetary and credit rate policy Bank Rate: Rate of interest which a bank charges on the loans and advances that it extends to the commercial banks. Currently at 6% Repo Rate: Discount Rate at which RBI purchases back the government securities from the commercial banks. Currently at 6% Reverse Repo Rate: It is the discount rate at which commercial banks borrows discounted security from RBI. Currently at 5%

    Reserve Ratios:
    CRR (cash reserve ratio): Percentage of depositors balance that commercial banks must park with the RBI. Currently at 6% SLR (statutory liquidity ratio): Is the amount that a bank needs to maintain in the form of cash or gold or in the form of government approved securities before providing credit to its customers. Currently at 25%

    Classification -

    Authors: Akash Gupta Karthik V.

    pg10akash_g@mandevian.com pg10karthik_v@mandevian.com

    Value Chain Analysis


    The banking value chain is very complicated with lot of cross-linkages. A simplified version of the same-

    Extracts from Union Budget 2010


    To reach the benefits of banking services to the 'Aam Aadmi', the Reserve Bank of India had set up a High Level Committee on the Lead Bank Scheme. Rs 16,500 Cr to be provided to PSBs in FY11 to maintain minimum Tier I capital of 8% New Licenses for NBFCs IIFCL to refinance loans given by banks

    Future Takes
    Technologies will prove to be a differentiator Geographies will no longer be an inhibiting factor Lot of potential customers Banks will also have to explore different avenues for raising capital to meet norms under Basel-II-III Mergers and Acquisitions in pipeline

    References
    http://www.ehow.com/about_5272218_history-commercial-banks-india.html http://www.banknetindia.com/banking/boverview.htm http://www.bis.org/bcbs/basel3.htm http://www.rbi.org.in Authors: Akash Gupta Karthik V.

    pg10akash_g@mandevian.com pg10karthik_v@mandevian.com

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