INDIAN BANKING

BY, SALONI GUPTA (20IM21)

SATYAM THAKARE (20IM22)
SHIVAM PATEL (20IM23)
HISTORY OF INDIAN BANKING

ORIGIN
• MODERN BAKING IN INDIA WAS ORIGINATED IN 18TH CENTURY
• BANK OF HINDUSTAN IS THE FIRST BANK WHICH WAS ESTABLISHED IN 1770
AND LIQUIDATED IN 1829-32, FORMING INDIAN BANKING CULTURE.
• STATE BANK OF INDIA IS ONE OF THE LARGEST AND THE OLDEST BANK WHICH
IS INTO EXISTENCE IN INDIA.
• INDIAN BANKING SECTOR IS CLASSIFIED INTO: SCHEDULED BANKS AND NON
SCHEDULED BANKS, AND FURTHER CLASSIFIED INTO NATIONALISED BANKS
AND ITS REGIONAL RURAL BANKS.
EVOLUTION OF INDIAN BANKING
Traditional banking
INDIAN BANKING SYSTEM- (1.0)
• COMMERCIAL BANKS- INCLUDES PUBLIC AND PRIVATE BANKS
• REGIONAL BANKS- INCLUDES SCHEDULED BANKS
Technology entry
• CO-OPERATIVE BANKS- EG. SARASWAT BANK (2.0)

EVOLUTION Self service

banking
1. NATIONALISATION OF BANKS
(3.0)
2. PHASES OF BANKS:
 PRE INDEPENDENT PHASE (BEFORE 1947)
Banking in life
 POST INDEPENDENT PHASE (AFTER 1947-91) (4.0)
 LPG ERA AND BEYOND (1991 ONWARDS)
IMPACT OF INDIAN BANKING
• FASTER GLOBAL TRANSACTION
• REDUCTION IN COST ASSOCIATED TO
BANKING SERVICES
• EASY ACCESS TO FINANCIAL SERVICES AT
REAL TIME
• INCREASED OPTION (ADD ON’S) D-MAT
ACCOUNT
• DATA-DRIVEN ASSESSMENT BUSINESS
INTELLIGENCE
• INCREASED CUSTOMER SATISFACTION
• BLOCKCHAIN TECHNOLOGY (SECURITY)
SIGNIFICANCE OF INDIAN BANKING
BENEFITS OF INDIAN BANKING
• QUICKER SERVICES AT BANKS FOR TRANSACTIONS.
• BANKING CAN BE ACCESSED FROM ANYWHERE THUS ELIMINATING BRANCH BANKING.
• PROVISION OF 24*7 BANKING SERVICES.
• QUICKER PROCESSING OF PAYMENTS THROUGH INTERNET BANKING AND MOBILE
BANKING.
• ALL BRANCHES ACCESS APPLICATIONS FROM CENTRAL SERVERS; THEREFORE, DEPOSITS
MADE IN ANY BRANCH IS SHOWN IMMEDIATELY, AND THE CUSTOMER CAN WITHDRAW
MONEY FROM ANY BRANCH THROUGHOUT THE COUNTRY.
• ACCURACY IN TRANSACTIONS AND MINIMIZATION OF ERRORS FOR BANKS.
• IMPROVED MANAGEMENT AND DOCUMENTATION OF RECORDS.
• EASIER TO SUBMIT VARIOUS REPORTS TO THE GOVERNMENT AND TO THE RESERVE
BANK OF INDIA.
• IT PROVIDES CONVENIENCE IN OPENING ACCOUNTS, PROCESSING CASH, CALCULATING
INTEREST AND IN IMPLEMENTING CHANGES IN POLICIES OF BANKS.
CHALLENGES OF INDIAN BANKING

GLOBALIZATION:
• ENHANCEMENT OF CUSTOMER SERVICE: DEMAND FOR NEW PRODUCTS,
PARTICULARLY DERIVATIVES
• APPLICATION OF TECHNOLOGY
• IMPLEMENTATION OF NEW ACCOUNTING STANDARDS
• COMPLIANCE WITH KYC ASPECTS
• INTEREST RATE RISK
• INTEREST RATES AND NON-PERFORMING ASSETS
• COMPETITION IN RETAIL BANKING
• THE URGE TO MERGE
THANKYOU