History of banks in India

• Banking in India originated in 18th century

• State bank – the oldest bank in India

• Currently India has

96 scheduled commercial banks

27 public sector banks
31 private banks
38 foreign banks
 And…. The HISTORY continues
• The total banks in India have combined
Over 53,000 BRANCHES
17,000 ATM’s

COMPARISON OF TOTAL ASSETS OF BANKING INDUSTRY

Public sector banks – 75%

Private sector – 18.2%
Foreign banks – 6.5%
 CO-OPERATIVE BANKS

• An important constituent of INDIAN FINANCIAL

SYSTEM

• Started functioning in India 100 years ago

• It is regulated by the RBI

• Coperative Banks governed by Banking Regulations

Act 1949 and Banking Laws (Co-operative Societies)
Act 1965
Co- operative Banks in India Co-operative Banks in India
finance rural areas as under finance urban area as under

•Farming •Self-employment
•Cattle •Industries

•Milk •Small scale units

•Hatchery •Home finance

•Personal Finance •Consumer finance

•Personal finance
 Few Co-operative Banks in India

• Suco Bank

• New India Co-Op Bank

• Panchkula Cooperative Bank

• Sangli Cooperative Bank

 REGIONAL RURAL BANKS (RRB’s)
• Established on 2nd October, 1975.

• Provides credit to weaker sections of the rural areas

• Started with 5 RRB’s, now it has 30 RRB’s

• Concessions enjoyed like lower interest rates .

Few RRB’s in India

• Andhra Pradesh Grameena Vikas Bank
• Jammu Rural Bank
• Punjab Gramin Bank
 Objectives of RRB’s

RRBs are oriented towards meeting the needs of the

weaker sections of the rural population consisting of:
- Small and marginal farmers
- Agricultural laborers
- Artisans
- Small entrepreneurs
- Mobilize deposits from rural households
RRBs are expected to make credit available to rural
households besides inspiring carefulness
Put it simple to ensure sufficient institutional credit for
agriculture and other rural sectors
 Key Performance Indicators : RRBs (Rs. Crore)
Indicator 31.03.2004 31.03.2005 31.03.2006
No. of RRBs 196 196 133
No. of districts covered 518 523 525
No. of branches 14446 14484 14494
No. of Staff 69249 68912 68629
Owned funds 5438 6181 6647
Deposits 56350 62143 71329
Borrowings 4595 5524 7303
Investments 36135 36761 41182
Loans outstanding 26114 32870 39713
Credit-deposit (CD) ratio 46% 53% 56%
Loans issued 15579 21082 25427
No. of RRBs having accumulated losses 90 83 58
Accumulated losses 2725 2715 2637
No. of RRBs in profit 163 166 111
Net NPA (%) 8.55% 4.84% 3.99%
Recovery (%) (as on 30 June) 73% 78% 80%
Per branch productivity 5.71 6.56 7.66
Per staff productivity 1.19 1.38 1.62
 Population Group and Bank Group-wise (March 2005)

Bank Group Rural Offices Semi-urban Urban / Total

Offices Metro
Offices
No % to No % to No % to No % to
Total Total Total Total

RRBs 11824 37 2284 15 537 02 1464 21

5

SCBs other than 20143 63 1333 85 2184 98 5532 79

RRBs 5 6 4
Total 31967 100 1561 100 2238 100 6996 100
9 3 9
 Commercial Bank

• It is a type of financial intermediary

• It is also known as business banking

• Provides checking accounts, savings accounts,

and money market accounts
 Commercial Bank

Scheduled
Bank Unscheduled Bank

Union Bank HDFC Bank Ltd.

ICICI Bank Ltd.
Vijaya Bank
IndusInd Bank
Dena Bank Kotak Mahindra
SBI UTI Bank