INTRODUCTION OF A BANK

The Banking Companies Act of 1949, define

Banking Company as a company which transacts the business of banking in India. It defines banking as, accepting for the purpose of lending or investment of deposit money from the public, repayable on demand or otherwise and withdraw able by cheque draft , order or otherwise A bank as an institution dealing in money and credit. It safeguard of the savings of the public and gives loans and advances

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Pre Independence Banking System of India

Banking in India originated in the last decades of the 18th century The first banks were The General Bank of India which started in 1786 and the Bank of Hindustan The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806 The other the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company of the largest banks in India

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Pre Independence Banking System of India (contd)

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Post Independence Banking System of India

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Post Independence Banking System of India (contd)

The over regulated and over administered polices eroded the capital base of most of the public sector banks and recapitalization of 19 nationalized banks was made by government through of budgetary provision The policy of directed investment in the form high SLR and CRR, directed credit programs, extra administrative interference in credit decision making, high operating costs, regulated interest rates, non-transparent accounting system coupled Non existence of operational flexibility, internal autonomy and absence of competition contaminated the health of the commercial banks and threatened their future survival

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Nationalization of Indian Banking System

The establishment of public sector banking through progressive nationalisation of commercial banks There were 3 phases of bank nationalisation: Nationalistion of Imperial Bank of India in1955 & its seven associate banks in 1959-60 Nationlisation of the 14 major commercial banks in 1969 Nationlisation of 6 more commercial banks in 1980 On July 1, 1955 the government of India nationlised the Imperial Bank of India and converted it into the State Bank of India

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Nationalization of Indian Banking System(contd)

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Types of Banks

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Types of Banks
Central Bank

Reserve Bank of India is central bank A bank which is entrusted with the functions of guiding and regulating the banking system of a country is known as its Central bank

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Types of Banks

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Types of Banks
Public sector banks Banks which are nationalized and major share is hold by government The share of the banking sector held by the public banks continued to grow through the 1980s, and by 1991 the public sector banks accounted for 90% of the banking sector Some examples of public sector unit State Bank of India Syndicate Bank UCO Bank

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Types of Banks
Private sector banking: The baking institute run by private entrepreneur are known as private banks Example of private sector banks: ICICI BANK HDFC BANK Foreign Banks: The banking institution which comes from foreign country and run their institution in India Example of foreign banks: Citi Bank Deutsche Bank

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Types of Banks
3)

Development Banks

Business often requires medium and long-term capital for up gradation of technologies or for expansion and modernization Such financial assistance is provided by Development banks 4) Co-operative Banks There are three types of co-operative banks operating in our country. (i) Primary Credit Societies (ii) Central Co-operative Banks (iii) State Co-operative Banks
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Fuction of Central Bank

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Functions of Commercial Banks

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Globalization Of Indian Banking System

Publicly owned banks handle more than 80% of the banking business in India and the rest is in the hands of private sector banks Banking in both the government and private sector is being revolutionized by this latest phenomenon called globalization. The report highlights: 1) An overview of the current trends in banking sector in India to enable the clients Profiles of 5 prominent players, from each of the public, private and foreign segment, in the banking sector 2) Discussion of the opportunities and challenges faced by the banking sector in India 3) Future forecast of the banking industry in India till the year 2010

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Modernization of Commercial Banks

E-Banking Telephone

Banking Use of Atm machine for withdrawal E- Payament of bills

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TH

NK A

U O Y

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