Chapter 3

Profile of Study Area

Chapter at Glance:

3.1 Introduction

3.2 Geographical Coverage

3.2.1 Historical Perspective
3.2.2 Demography
3.2.3 Map of Mumbai City

3.3 Profile of Mumbai Suburban

3.3.1 Historical Perspective
3.3.2 Map of Mumbai Suburban District
3.3.2 Demography

3.4 Mumbai Metropolitan Region (MMR)

3.4.1 Demography
3.4.2 Map of Mumbai Metropolitan Region (MMR)

3.4 Banking Structure in India

3.4.1 Commercial Banks
3.4.2 Scheduled and Non-scheduled Banks
3.4.3 Public Sector Banks
3.4.4 Private Sector Banks
3.4.5 Foreign Banks
3.4.6 Co-operative Banks
3.4.7 Regional Rural Banks (RRBs)

3.5 Sampled Banks

3.6 Deposit Mobilisation by Sampled Banks

3.7 Conclusions

80 | P a g e
3.1 INTRODUCTION
Profiling a study area is an important and essential aspect of any research
endeavour. A detailed study of various aspects of research area and its various
elements gives a clear understanding of physical, social, economic, cultural, and
ethnic features of the region where the study is undertaken. It also gives a brief
idea about the profile of people in the region who also constitute universe for the
research study. The present chapter is an attempt to study Mumbai City and its
suburban areas. The chapter also outlines the various types of banks that have been
considered for the purpose of the present study. The chapter also covers discussion
on various types of deposits mobilised by these banks.

3.2 GEOGRAPHICAL COVERAGE

Geographically the study is restricted to Mumbai city of Maharashtra state.
Mumbai is considered to be the commercial capital of India. The city houses
people of all religions, communities and castes with diverse economic
backgrounds and therefore is considered to be a mini India. This makes Mumbai
city, an ideal place for conducting research on many various commercial and
economics aspects.
3.2.1 HISTORICAL PERSPECTIVE
Mumbai is the capital city  of the Indian state  of Maharashtra. It is located
on the western coast of India. It has a deep natural harbour and is one of the main
centre of export and import of goods to and from foreign countries.  It is also the
wealthiest city in India. The GDP of Mumbai is the highest among any city in the
South, West, or Central Asia . The city takes pride in housing the highest number
of billionaires and millionaires among all cities in India.

Mumbai city was created by joining seven islands that were the homes to
fishing communities. For over centuries, the islands were ruled by a number of
successive indigenous empires before being ceded to the Portuguese. In the later
period, they were passed on to the British East India Company in 1661, when King
Charles II married the Portuguese Catherine of Braganza . King Charles II received
the ports of Tangier and seven islands of Bombay as a part of dowry from the

81 | P a g e
Portuguese. The work of integration of seven islands of Bombay started during the
mid-18th century under the Hornby Vellard Project by reclaiming the land between
these islands from the Arabian Sea. The work of integration of islands was completed
in the year 1845. Along with the integration of islands, the work of construction of
development of infrastructure likes roads and railways, was also undertaken in the
city. All these transformed Bombay into a major seaport on the Arabian Sea. During
the 19th century, Bombay became the major economic and educational centre in India.
The city also became the focal point of India’s freedom struggle from the British rule
in the early 20th century. In the post-independence period in 1947, the city became a
part of Bombay state. In 1960, Bombay was proclaimed to be the capital city of newly
created Maharashtra State following the Samyukta Maharashtra movement. In 1995,
Bombay was renamed as Mumbai to give it a local identity.

Mumbai is the financial, commercial and entertainment capital of India. It is

one of the top ten commercial centres in the world. Mumbai contributes about
6.16% of India's GDP and accounts for 25% of industrial output of the country.
Being an excellent natural harbour and commercial centre, Mumbai accounts for
70% of maritime trade of India. The city attracts huge capital inflow, nationally as
well as internationally, with about 70% of capital transactions of India to its credit.
A number of commercial, industrial and financial units have their headquarters
located in the city of Mumbai. Some of the well-known such centres are:
(a) Reserve Bank of India (RBI),

(b) Bombay Stock Exchange (BSE),

(c) National Stock Exchange of India (NSE),

(d) Multi-commodity Exchange of India Ltd. (MCX),

(e) Securities Exchange Board of India (SEBI).

In addition to that the corporate headquarters of many Indian companies

and Multinational Corporations (MNCs) are also located in the city of Mumbai.
The city houses India's premier scientific and nuclear institutes like BARC, NPCL,
IREL, TIFR, AERB, AECI and the Department of Atomic Energy. Bollywood (the
centre of Hindi film industry), the main centre of Marathi film industry and
television industry are located in the city of Mumbai. Mumbai offers immense job

82 | P a g e
opportunities and has the highest standard of living. As a result, the city attracts
migrants from all over India and is popularly known as mini-India as people of
various castes, communities, faiths and cultures live here in perfect harmony.

Being a financial capital of India, Mumbai has head offices of most of the
public sector and private sector banks. The city has a dense network of branches of
public sector banks, private sector banks, co-operative banks and also foreign
banks. The lifestyle of people here is more influenced by western culture giving an
opportunity to banks and financial institutions to expand their business. Last two
decades have witnessed a sudden change in the outlook of people in city with most
of them turning to banks and financial institutions for financing their requirements
of housing and other luxuries of life.

3.2.2 DEMOGRAPHY
The local administration of the city of Mumbai is vested with the
Municipal Corporation of Greater Mumbai (MCGM). Mumbai is the most
populated city in India and the ninth most populated agglomeration in the world .
As per the Census of 2011, Mumbai had total population of 12,442,373 persons.
The male population of the city stood at 6,715,931 while that of female population
stood at 5,726,442. The physical limits of the city have grown enormously in all
directions in the recent past. Mumbai along with its suburban areas constitute
Mumbai Metropolitan Region (MMR). The population of Mumbai Metropolitan
Region (MMR), as per the Census, 2011, stood at 18,394,912 of which 9,872,271
were males and 8,522,641 were females.
Table No. 3.1
Demography of Mumbai City
Total Male Female
City Population 12442373 6715931 5726442
Literate 10084507 5633709 4450798
Children (0-6) 1203770 629262 574508
Average Literacy (%) 89.73% 92.56% 86.39%
Sex Ratio 913
Source: Census of India, Government of India, 2011
3.2.3 MAP OF MUMBAI CITY

83 | P a g e
3.3 PROFILE OF MUMBAI SUBURBAN
3.3.1 HISTORICAL PERSPECTIVE
Mumbai Suburban district was carved out of Mumbai city on 1 st October
1990 by the splitting of Mumbai city in two independent districts of Mumbai and
Mumbai Suburban district for administrative convenience. Mumbai Suburban
district forms the part of Konkan division. Its headquarters is located at Bandra.
Mumbai suburban district consists of three administrative sub-divisions of Kurla,
Andheri and Borivali. The district along with Mumbai City district and other
suburban communities make up the metropolis of Mumbai on Salsette Island .

The total area of Mumbai suburban district is 446 km². This is the second
smallest districts of Maharashtra but has a very high density of population. The
Mumbai suburban district consists of 87 villages. The Mithi River is the main river
in the district. The jurisdiction of Mumbai Suburban District spread over a large
geographical areas which are divided into three sub-divisions as under:
(a) Division – I From Bandra to Dahisar,
(b) Division – II from Kurla (Chuna Bhatti) to Mulund, and
(c) Division – III from Kurla up to Trombay Creek.
3.3.2 MAP OF MUMBAI SUBURBAN DISTRICT
84 | P a g e
3.3.2 DEMOGRAPHY
Mumbai Suburban District is one of the largest districts in the country in
terms of population. As per the Census, 2011, the population of the Mumbai
Suburban district was 9,332,481 persons. This is roughly equal to the total
population of the nation of Benin or the US state of North Carolina . Mumbai
Suburban District stands fifth (out of a total of 640 districts) in terms of population
in India. The district has a very high density of population of 25291.28 persons per
square kilometre (65,504.1/sq mi). 
Table No. 3.2
Demography of Mumbai Suburban
Total Male Female
City Population 9356962 5031323 4325639
Literate 7575485 4223029 3352456
Children (0-6) 930884 486696 444188
Average Literacy (%) 89.91% 92.92% 86.37%
Sex Ratio 860
Source: Census of India, Government of India, 2011
The population of the district has increased at a rate of 8.01% during the
decade of 2001-2011. The sex ratio of the Mumbai Suburban district is poor with

85 | P a g e
only 860 females for every 1000 males. The literacy ratio of the district stood at
90.9% in the year 2011.

3.4 MUMBAI METROPOLITAN REGION (MMR)

Mumbai Metropolitan Region (MMR) is a metropolitan area comprising of
Mumbai and its satellite towns in Maharashtra. Over a period time, the original
Mumbai city has expanded leaps and bounds in all directions. Thus, Mumbai
Metropolitan Region (MMR) consists of all urban conglomerates that have
developed in the vicinity of Mumbai city over a period of time. The Mumbai
Metropolitan Region (MMR) is spread over 4,355 sq. km. area and consists of 8
Municipal Corporations and 9 Municipal Council. These Municipal Corporations
and Municipal Councils are as under:
Table No. 3.3
Composition of Mumbai Metropolitan Region (MMR)
Municipal Corporations Municipal Councils
(a) Greater Mumbai, (a) Ambarnath,
(b) Thane, (b) Kulgaon-Badalapur,
(c) Kalyan-Dombivali, (c) Matheran,
(d) Navi Mumbai, (d) Karjat,
(e) Ulhasnagar, (e) Panvel,
(f) Bhiwandi-Nizamapur, (f) Khopoli,
(g) Vasai-Virar and (g) Pen,
(h) Mira-Bhayandar (h) Uran, and
(i) Alibaug.
Source: https://mmrda.maharashtra.gov.in/about-mmr

Mumbai Metropolitan Region (MMR) also consists of more than 1,000

villages in Thane and Raigad Districts. Mumbai Metropolitan Region
Development Authority (MMRDA) was set up in the year 1975 and is responsible
for the balanced development of the MMR. The region has an area of 6,355 square
kilometers and with a population of over 26 million. It is among the most populous
metropolitan areas in the world.

3.4.1 DEMOGRAPHY

86 | P a g e
 The total geographical expanse of Mumbai Metropolitan Region (MMR) in
the year 2011 was 4354.50 sq.km. as against 437.71 sq.km of greater Mumbai. The
total population of Mumbai Metropolitan Region (MMR) stood at 207.2 lakhs in
the year 2011. The following table highlights the population of various Municipal
Corporations and Municipal Council of MMR as per the Census 2011.
Table No. 3.4
Demography of Mumbai Metropolitan Region (MMR)
Sr. No. Municipal Corporation Population (In Lakhs)
1. Municipal Corporation of Greater Mumbai 124.78
2. Thane Municipal Corporation 18.19
3. Kalyan- Dombivali Municipal Corporation 12.46
4. Ulhasnagar Municipal Corporation 5.07
5. Mira -Bhayandar Municipal Corporation 8.15
6. Bhiwandi-Nizampur Municipal Corporation 7.11
7. Navi Mumbai  Municipal Corporation 11.19
8. Vasai Virar City Municipal Corporation 12.21
Sr. No. Municipal Council Population (In Lakhs)
9. Ambarnath Municipal Corporation 2.54
10. Kulgaon-Badalapur Municipal Corporation 1.76
11. Alibag Municipal Corporation 0.21
12. Pen Municipal Corporation 0.38
13. Panvel Municipal Corporation 1.80
14. Uran Municipal Corporation 0.30
15. Matheran Municipal Corporation 0.04
16. Khopoli Municipal Corporation 0.71
17. Karjat Municipal Corporation 0.30
TOTAL 207.20
Source: Census, Government of India, 2011
3.4.2 MAP OF MUMBAI METROPOLITAN REGION (MMR)

87 | P a g e
3.4 BANKING STRUCTURE IN INDIA
Indian banking system is vast and varied. The Reserve Bank of India (RBI),
the Central Bank of the Country, is the apex of Indian banking system. It is the
main regulatory authority for the banking system in India. Indian banks are
broadly categorised into Commercial Banks and Co-operative Banks. Commercial
Banks and Co-operative Banks are further sub-divided into different groups of
banks as under:
(1) Commercial Banks:

 Schedule Commercial Banks (SCBs)

- Public Sector Banks,

- Private Sector Banks,
- Foreign Banks and
- Regional Rural Banks (RRBs).

 Non-scheduled Commercial Banks.

88 | P a g e
 (2) Co-operative Banks:

 Urban Co-operative Banks and

 Rural Co-operative Banks.

3.4.1 COMMERCIAL BANKS:

Commercial Banks are those profit making institutions which accept deposits
from general public and gives money (loan) to individuals like household,
entrepreneurs, businessmen etc. The prime objective of these banks is to earn profit
in the form of interest, commission etc. The operations of all these commercial
banks are regulated by the Reserve Bank of India, which is the central bank and
supreme financial authority in India. Commercial banks in India are categorised into
Scheduled Commercial Banks and Non-scheduled Commercial Banks.

3.4.2 SCHEDULED AND NON-SCHEDULED BANKS:

Scheduled Commercial Banks are those banks which are included in the
Second Schedule of Reserve Bank of India Act, 1934. Those commercial banks
which are not included in the Second Schedule of Reserve Bank of India Act, 1934
are termed as Non-scheduled Commercial Banks. Scheduled Commercial Banks
carry on normal business of banking like accepting deposits and granting loans to
their customers. Scheduled Banks are further categorised into Public Sector Banks,
Private Sector Banks and Foreign Banks.

3.4.3 PUBLIC SECTOR BANKS:

Public Sector Banks (PSBs) constitute the major group of banks in India.
Public Sector Banks are the financial institutions which are owned and managed
by the central or the state government. These banks have major shareholding
(more than 50%) of the government. The shares of these banks are listed on
Bombay Stock Exchange (BSE) as well as National Stock Exchange (NSE). As on
31st March, 2019, there were 18 public sector banks in India. These are as under:
(a) Allahabad Bank,

(b) Andhra Bank,

(c) Bank of India (BOI),

89 | P a g e
 (d) Bank of Baroda (BOB),

(e) Bank of Maharashtra,

(f) Canara Bank,

(g) Central Bank of India,

(h) Corporation Bank,

(i) Indian Bank,

(j) Indian Overseas Bank,

(k) Oriental Bank of Commerce,

(l) Punjab & Sind Bank,

(m)Punjab National Bank (PNB),

(n) State Bank of India (SBI),

(o) Syndicate Bank,

(p) UCO Bank,

(q) Union Bank of India and

(r) United Bank of India (UBI).

There had been several mergers among the public sector banks in the post-
liberalisation period. For example, Dena Bank and Vijaya Bank merged with Bank
of Baroda from 1 st April, 2019. Among all these public sector banks, State Bank of
India (SBI) is the largest in terms of customer base and business, geographical
reach and number of branches.

3.4.4 PRIVATE SECTOR BANKS:

Private Sector Banks are the financial institutions which are owned and
managed by private individual or group of individuals. Even shares of these banks
are listed on Bombay Stock Exchange (BSE) as well as National Stock Exchange
(NSE). Private Sector Banks are further subdivided into Old Private Sector Banks
and New Private Sector Banks.

Old private sector banks are those private sector banks which existed in
India at the time of nationalization in the year 1969 and were not nationalised due
90 | P a g e
to their small size. At present, there are 12 Old Private Sector Banks in India.
These are:
 Catholic Syrian Bank

 City Union Bank

 Dhanlaxmi Bank

 Federal Bank

 Jammu and Kashmir Bank

 Karnataka Bank

 Karur Vysya Bank

 Lakshmi Vilas Bank

 Nainital Bank

 Ratnakar Bank

 South Indian Bank

 Tamilnad Merchantile Bank

From among these, Nainital Bank is a subsidiary of the Bank of Baroda.

Bank of Baroda has 98.57% stake in Nainital Bank. Some Other Private Sector
Banks have merged with other banks. For example, Lord Krishna Bank merged
with Centurion Bank of Punjab in 2007; Sangli Bank merged with ICICI Bank in
2006; Centurion Bank of Punjab merged with HDFC in 2008. More recently, in
2016, the ING Vysya Bank merged with Kotak Mahindra Bank.

New Private Sector Banks are those private sector banks which were
established as per the revised guidelines issued by the RBI regarding the entry of
private sector banks in 1993. At present, there are nine New Private Sector Banks
in India. These are:
 Axis Bank

 Development Credit Bank (DCB Bank Ltd.)

 HDFC Bank.

 ICICI Bank.

91 | P a g e
  IndusInd Bank.

 Kotak Mahindra Bank.

 Yes Bank.

 IDFC

 Bandhan Bank.

3.4.5 FOREIGN BANKS:

Foreign Commercial Banks are those banks that have their branches in
India and headquarters incorporated abroad. The main activity or function of these
foreign banks is to fund India’s foreign trade through their vast resources. Foreign
banks in India can operate in one of the following two ways:
(a) One way is to open a physical branch office in India, and

(b) The second way is to open a representative office in India, which is not
actually a branch.

As of December, 2018 India had 45 foreign banks with total of 286

branches operating in India. The list of these banks along with number of branches
is as under:
Table No. 3.5
Foreign Banks in India as on 31 March, 2019
Foreign Bank Country of Number of
Origin Branches
(1) Australia and New Zealand Banking Group Ltd. Australia 3
(2) National Australia Bank Australia 1
(3) Westpac Banking Corporation Australia 1
(4) Bank of Bahrain & Kuwait BSC Bahrain 4
(5) AB Bank Ltd. Bangladesh 1
(6) Sonali Bank Ltd. Bangladesh 2
(7) Bank of Nova Scotia Canada 3
(8) Industrial & Commercial Bank of China Ltd. China 1
(9) BNP Paribas France 8
(10) Credit Agricole Corporate & Investment Bank France 5
(11) Societe Generale France 4
(12) Deutsche Bank Germany 17
(13) HSBC Ltd Hong Kong 26

92 | P a g e
 (14) PT Bank Maybank Indonesia TBK Indonesia 1
(15) Mizuho Bank Ltd. Japan 5
(16) Sumitomo Mitsui Banking Corporation Japan 2
(17) The Bank of Tokyo- Mitsubishi UFJ Ltd Japan 5
(18) SBM Bank(Mauritius) Ltd Mauritius 4
(19) Cooperatieve Rabobank U.A. Netherlands 1
(20) Doha Bank Qatar 3
(21) Qatar National Bank Qatar 1
(22) JSC VTB Bank Russia 1
(23) Sberbank Russia 1
(24) DBS Bank Ltd. Singapore 12
(25) United Overseas Bank Ltd Singapore 1
(26) FirstRand Bank Ltd S. Africa 1
(27) Shinhan Bank South Korea 6
(28) Woori Bank South Korea 3
(29) KEB Hana Bank South Korea 1
(30) Industrial Bank of Korea South Korea 1
(31) Bank of Ceylon Sri Lanka 1
(32) Credit Suisse A.G Switzerland 1
(33) CTBC Bank Co. Ltd. Taiwan 2
(34) Krung Thai Bank Public Co. Ltd. Thailand 1
(35) Abu Dhabi Commercial Bank Ltd. UAE 2
(36) Mashreq Bank PSC UAE 1
(37) First Abu Dhabi Bank PJSC UAE 1
(38) Emirates Bank NBD UAE 1
(39) Barclays Bank Plc. U.K. 6
(40) Standard Chartered Bank U.K. 100
(41) The Royal Bank of Scotland plc U.K. 1
(42) American Express Banking Corporation USA 1
(43) Bank of America USA 4
(44) Citibank N.A. USA 35
(45) J.P. Morgan Chase Bank N.A. USA 4
Total Branches 286
Source: Trend and Progress of Banking in India, Reserve Bank of India, 2018

Apart from the above 286 branches of foreign banks in India, 40 foreign
banks are operating in India through representative offices mode. Some foreign
banks have entered India via the Non-banking Financial Banking Financial
Company (NBFC) route.

3.4.6 CO-OPERATIVE BANKS

93 | P a g e
 In addition to commercial banks and foreign banks, there exists a vast
network of banking institutions called co-operative credit institutions. These bank
operate in urban as well as rural areas on the principle of co-operation. The
cooperative banks have been established by various Co-operative Societies Acts
enacted by the State Governments. Co-operative banks in India are categorised
into urban co-operative banks and rural co-operative banks.
(a) Urban Co-operative Banks: Urban co-operative banks are further divided
into scheduled and non-scheduled, which are further sub-divided into
single state banks and multi-state banks. Majority of urban co-operative
banks are non-scheduled and single state.

(b) Rural Co-operative Banks: Rural co-operative banks are further sub-
divided into short-term and long-term structures. The short-term
cooperative banks are three-tiered operating at different levels in the state.
There three tiers are state co-operative banks operating at the state level,
district co-operative banks operating at the district levels and primary
agricultural credit societies operating at the village or grass-root level.
Similarly, the long-term structures are further sub-divided into state co-
operative agricultural and rural development banks (SCARDS) operating
the state level and primary co-operative agricultural and rural development
banks (PCARDBS) operating the district level.

3.4.7 REGIONAL RURAL BANKS (RRBS)

Regional Rural Banks are banking institutions which cater to the credit
requirements of the rural sector. These banks were established in India 1975,
under the Regional Rural Banks Act, 1976. These banks are closely linked with
the commercial banks which are their sponsor banks. RRBs are mainly established
to serve the requirements of rural areas but they may set up branches in urban
areas to serve the requirements of urban areas too. As on 31 st December, 2018,
there were 56 operational RRBs in India having 21398 branches in different parts
of the country.

3.5 SAMPLED BANKS

94 | P a g e
 It can be concluded from the above discussion that the Indian Banking
System is vast and highly varied in terms of their roles and functions Public Sector
Banks are owned and operated by the government while private sector banks are
owned and operated by private individual or group of individuals. Similarly, there
are foreign banks which owe their origin to foreign countries but have their
branches in India. Co-operative banks have been set up by group of people with an
objective of providing services to community at large and last but not the least,
Regional Rural Banks have been set up keeping in mind the banking needs and
requirements of rural masses. Since the present study is geographically confined to
urban areas of Mumbai city and its adjoining regions, there are no Regional Rural
Banks in the research area. Therefore, the researcher has confined his sample to
the respondents from the following four categories of banks for the purpose of data
collection and analysis.
(a) Public Sector Banks

(b) Private Sector Banks

(c) Foreign Banks

(d) Co-operative Banks

3.6 DEPOSIT MOBILISATION BY SAMPLED BANKS

As stated earlier, deposit mobilisation is the primary function of
commercial banks and all other function viz., lending money and providing other
financial services to its customers are secondary to it. A bank can lend money only
if it has sufficient deposits at its disposal to keep requisite reserves as per the RBI
guidelines and lend rest of the money to individuals, households and corporate as
per their demand. Therefore, deposit mobilisation is the first and foremost function
of any banking unit.

The following table shows the deposits mobilised by different categories of

banks during a period of the last five years, i.e. from 2013-14 to 2017-18.

Table No. 3.6 (A)

Deposits Mobilised by Different Categories of Banks from 203-14 to 2017-18
(Amount in ` Billion)
95 | P a g e
 2013-14 2014-15 2015-16 2016-17 2017-18
Public Sector Banks 51291 57248 61819 65724 70127
Private Sector Bank 13326 15642 18653 22202 25806
Foreign Bank 3179 3636 4342 5062 4661
Co-operative Bank 5358 5909 6575 7496 7980
RRB 2998 2299 2641 3041 3440
Local Area Bank 14 18 22 6 6
Total 76166 84752 94052 103531 112020
Deposits = Saving Deposits + Current Deposits + Term Deposits
Source: Report on Trend and Progress of Banking in India, June 30, 2018

96 | P a g e
 Table No. 3.6 (B)
Trends in Deposits Mobilised by Different Categories of Banks from 203-14 to
2017-18 taking 2013-14 as Base
  2013-14 2014-15 2015-16 2016-17 2017-18 Change
Public Sector Banks 100.00 111.61 120.53 128.14 136.72 36.72
Private Sector Bank 100.00 117.38 139.97 166.61 193.65 93.65
Foreign Bank 100.00 114.38 136.58 159.23 146.62 46.62
Co-operative Bank 100.00 110.28 122.71 139.90 148.94 48.94
RRB 100.00 76.68 88.09 101.43 114.74 14.74
Local Area Bank 100.00 128.57 157.14 42.86 42.86 –57.14
Total 100.00 111.27 123.48 135.93 147.07 47.07
Deposits = Saving Deposits + Current Deposits + Term Deposits
Source: Compiled from the data extracted from Report on Trend and Progress of
Banking in India, June 30, 2018

Analysis:
It can be seen in the above table that the total deposits mobilised by Public
Sector Banks collectively increased from ` 51291 billion in the year 2013-14 to `
70127 billion by the end of 2017-18, registering an increase of 36.72% over the
research period. The deposits mobilised by private sector banks during the same
period increased from ` 13326 billion in the year 2013-14 to ` 25806 billion by
the end of 2017-18, registering an increase of 93.65% over the research period. It
should be noted that although private sector banks have registered huge jump in
deposit mobilisation over the research period, their collective share in total
deposits mobilised by banking industry as a whole remained much lesser than
public sector banks. Public sector banks collectively mobilised 62.60% of the total
bank deposits while the private sector collectively mobilised only 23.03% of the
total deposits of the banking industry.

The deposits mobilised by foreign banks during the research period

increased from ` 3179 billion in the year 2013-14 to ` 4661 billion by the end of
2017-18, registering an increase of 46.62% over the research period. While the
share of co-operative banks increased from ` 35358 billion in the year 2013-14 to
` 7980 billion by the end of 2017-18, registering an increase of 48.94% over the

97 | P a g e
research period. Thu, the deposits mobilised by each category of banks under
consideration increased during the research period. However, the increased noticed
in the case of private sector bank had been magnificent in comparison to other
categories of banks. The four categories of banks under consideration can be
ranked as under on the basis of growth of their deposits over the research period in
descending order from the highest to the lowest as under:
(1) Rank 1 – Private Sector Banks

(2) Rank 2 – Co-operative Sector Banks

(3) Rank 3 – Foreign Banks

(4) Rank 4 - Public Sector Banks

3.7 CONCLUSIONS
In conclusion, it can be said that Mumbai and its surrounding regions
represent all types of banks in India. But considering the time and cost constraint
and also to confine the present study at micro level, the researcher has selected the
banks that are located in the urban areas. Therefore, the Regional Rural Banks and
Local Area Banks have been kept outside the purview of the present study.
Mumbai, being a financial capital of the country, has all types of banks and the
head offices of most of these banks have geographic locations in the city of
Mumbai. Therefore, the city is an ideal place for conducting any type of study
related to financial sector. Also the volume of financial transactions in the city is
comparatively higher in comparison to other metropolitan areas in the country.

________________________

98 | P a g e