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Banking Trends
Banking Trends
INDUSTRY IN INDIA
Introduction
The Indian Banking Industry is governed by the Banking
Regulation Act of India, 1949. As a whole India has now a far more
developed and integrated banking system with large number of
banks in the country.
1) Structure of Banking Industry in India
Banking industry in India is classified into scheduled and Nonscheduled banks. Scheduled banks consist of State Co-operative
banks and Commercial banks. The non-scheduled banks consist of
Central Co-operative banks and primary credit societies and
commercial banks.
2) Public sector banks in India
The public sector banks consist of SBI and its associated banks,
nationalized banks including IDBI and Regional Rural Banks. By
2012 there were 26public sector banks with 84,546 branches out
of which 41.1% were rural branches consisting of State Bank of
India and its 6 associated banks, 19 nationalized banks and IDBI
Ltd.
Public sector banks are the mainstay of the Indian Banking
System. On account of many measures taken by the government
the capital adequacy ratio of public sector banks has risen from
11.2% in 2001 to 13.1% by Basel II. Similarly the asset quality as
shown by level of NPAs has improved.
3) Private sector Banks in India.
The private sector banks consists of 14 old and 7 new the private
sector banks with 13,667 branches with 11.8% rural branches by
2012. The capital adequacy ratio of old private sector banks has
risen from12.5% during Basel I to 14.1% during Basel II and that
of new private sector banks have risen from 14.9% to 16.7% .
4) Foreign banks operations in India: