BANKING

INDUSTRY
 INTRODUCTION ON BANKING
INDUSTRY
■ Modern banking in India originated in the mid of 18th century.
■ A network of financial institutions licensed by the state to supply banking services.
■ Services provided by the banking industry
■ Private Banks vs Publics Banks
■ Micro Financing
■ Examples – HDFC Bank, ICICI Bank, Axis Bank Ltd, Kotak Mahindra Bank, State
Bank of India, Punjab National Bank, Bank of Baroda, Bank of India.
RECENT MERGER IN
ANKING INDUSTRY

REASONS
 Merger of 10 public sector banks into 4 on
August 30, 2019
 Economic slowdown
 Increasing the liquidity
 Non-performing assets
 IMPACT OF COVID ON BANKING
INDUSTRY
■ Liquidity Issue
■ Fall In Demand, Lower Incomes, & Production Shutdowns - Increasing the period for
re-payment.
■ NPA’s - Non-Recovery Of Loan, Customer Frauds, Bad Loans
■ Staff Shortages.
■ Slowed Sales, And Declining Profits.
■ Direct Economic Impact - Banks need to have a plan in place to protect employees and
customers from its spread.
■ Remote working of employees
 IMPACT ON REVENUES

■ Lower incomes, NPA’s & slowed sales.

■ The low interest rate 
■ Increased credit risk of corporate and retail clients of the banks
■ Indian banks fell from Rs 7,34,663 crore to Rs 6,84,808 crore in FY21- GNPA’s (5.9 per
cent) , mainly due to a fall of 8.4 per cent in bad loans of Public SB’s.
■ The Gross NPA (GNPA) ratio of PSBs is 11.52 per cent as at September-end 2021
against 11.94 per cent as at June-end 2021.
 IMPACT ON EMPLOYMENT

■ 22% Employment rate before COVID and a (3-4)% decrease after COVID
■ Staff shortages – due to loosing of lives
■ Postponement of Bank Exams and its related processes
 GOVT. STIMULU PACKAGES TO
BANKING INDUSTRY
■ Prevent or reverse a recession by boosting employment and spending.
■ Stimulus package worth ₹50,000 crore.
■ Lend money to hospitals, manufacturers, importers and sellers of vaccines, oxygen
concentrators, medical oxygen and covid drugs.
■  Increase government spending—and lower taxes and interest rates—to stimulate an
economy and lift it out of a recession or depression.
GOVT. STIMULU PACKAGES TO CREATE
EMPLOYMENT OPPORTUNITIES

■ Usage of digital payments

■ Faster recruitment and selection process
TOO BOOST STEPS TAKEN BY THE
GOVT.
 Banks being allowed to raise capital from the market to meet capital adequacy norms
by diluting the government’s stake up to 52 per cent.

 Pradhan Mantri Jan Dhan Yojana launched to provide universal access to banking
facilities with at least one basic banking account for every household.

 Strengthening and harmonizing regulations across financial intermediaries and in

adherence to global standards.

 Promoting digitization, managing technology-enabled financial innovations and

dealing with cyber-security risks.
THANK YOU

BY-
K. Madhumita (211197)
B. Yogesh (211108)
P. Prerna (211153)
R. Sainath (211273)