INDIAN

BANKING SERVICES
BANKING
Banking refers to the industry and activities involving financial institutions that accept deposits from individuals and businesses,
provide loans, and offer various other financial services such as wealth management, currency exchange, and safe deposit boxes

Importance
•
Of Banking In The Economy
Economic Stability: Banks contribute t o economic stability by managing the money supply and facilitating
smooth financial transactions. Central banks use tools like interest rate adjustments and reserve requirements to control inflation
and ensure liquidity in the market. This helps maintain confidence in the financial system, preventing economic crises and
promoting sustainable growth.

• Facilitation of Payments: Banks facilitate payments by providing efficient and secure methods for transferring money,
such as electronic transfers, credit and debit cards, and online banking services. These payment systems enable smooth and
quick transactions for individuals and businesses, supporting daily commerce and trade.

• International Trade: Banks facilitate international trade by providing various services like letters of credit, foreign
exchange, and trade finance. These services ensure that cross-border transactions are conducted efficiently and securely.
 CLASSIFICATION OF BANKS
Central Bank
It is an institution that manages the currency and
monetary policy of a country or monetary union.
Cooperative Bank
It is formed by communities, like villages or specific groups,
pooling resources to offer financial services such as loans and
savings accounts to support collective financial needs.
Development Bank
It is a financial institution that provides risk
capital for economic development projects on a
non-commercial basis.
Commercial Bank
It is a financial institution that accepts deposits from the
public and gives loans for the purposes of consumption and
investment to make a profit.
Exchange Bank
It offers foreign currency to a country's importers,
exporters, or other financial institutions
Other Banks
Other banks include – “Regional Rural” banks, “Land
Development” banks, “EXIM” banks, etc.
 E-BANKING
Definition: E-banking is a system that enables customers of a bank or other financial institution to conduct a range of financial transactions through the
financial institution's website or mobile application. Its forms include Net banking, Electronic Fund Transfer System (“EFTS”), Automated
Teller Machine (“ATM”), debit cards and credit cards, telebanking and mobile banking.
• No face-to-face contact in person between the client and the bank.
Features: • Both client and bank need mobile/computer.
• The client must provide e-banking option to the bank.
• The bank staff and client must understand e-banking technology.
• Convenience: Allows customers to bank anytime, anywhere via internet-connected devices, eliminating the need for
Current Scenario physical visits to bank branches.
• Accessibility: Expands access to financial services, particularly in remote areas lacking physical bank branches.
• Cost-efficiency: Reduces operational costs for both banks and customers compared to traditional banking methods.
• Transaction Speed: Enables instant or rapid execution of transactions like fund transfers and bill payments, boosting
efficiency.
• Security: Implements advanced measures like encryption and multi-factor authentication to safeguard customer data
from cyber threats.
• Data Analytics: Utilizes transaction data for understanding customer behavior, refining services, and customizing
marketing strategies.
• Financial Inclusion: Promotes economic growth by providing banking services to underserved populations, fostering
broader financial participation.
 ANALYSIS OF BANKING SECTOR STOCKS

HDFC Bank :
SMA: The share prices are downtrend in share movement but in the
long run the share prices are in increasing trend.
MACD: The share short term moving average curve crossed the long
term moving average curve it indicates to buy the stock. When the
short term moving average curve falls below the long term moving
average curve it indicates to sell the stock.
RSI: The RSI values are less than thirty, it indicates to buy the stock.
When the RSI values are more than seventy it is better to sell the
stock.
ROC: It shows that when ROC values are negative, it indicates to
buy the stock. If the values are positive, it indicates to sell the stock.
 • CREDIT APPRAISAL PROCESS IN BANKING
DEFINITION :- Credit appraisal, also known as credit evaluation or credit assessment, is a comprehensive evaluation of
a borrower's financial capacity, credit history, and ability to repay the loan.

The following are the factors evaluated during a credit appraisal process:
FACTORS:- Income: Borrower income is the foremost thing a lender evaluates. It helps determine whether the person is eligible for the credit appraisal.
Age: Each financial institution has specific age criteria for borrowers. Any individual applying for a loan or credit card must fulfil this requirement.
Credit History: The lender assesses the borrower's repayment ability by checking the borrower's prior or existing financial debt (if any). A good
repayment history demonstrates that the individual is a responsible borrower and is less likely to default.
Credit Score: A credit score is another important parameter that aids in establishing an individual's creditworthiness. This score ranges between 300 and
900, and a score of 750 or above is considered a good number. Having a good credit score eases the credit appraisal process since it shows an individual's
excellent financial well-being.

IMPORTANCE:- Credit appraisal techniques are important for various reasons. They primarily help the lender assess the borrower’s repayment capacity and determine
the terms and structure of loans and other credit facilities. The key benefits of credit appraisal include the following:
 It helps the lender conduct an effective risk analysis of the borrower
 It establishes the creditworthiness of the borrower
 It is crucial in determining the loan amount and interest rates
 FINANCIAL PERFORMANCE ANALYSIS OF SBI AND AXIS BANK
State Bank of India (SBI) and AXIS Bank are the two leading banks in India. One being a public sector and later one is private sector bank. Financial Performance and the
efficient functioning of commercial banks are the major measuring attributes of a country’s financial system. For the comparison of bank’s position the study has applied the
following. The study has identified that the banks have been maintaining their prescribed parameters and operating profitab ly.

NET INTEREST MARGIN COST TO INCOME RATIO DEBT EQUITY RATIO CREDIT TO DEPOSIT RATIO OTHER TO TOTAL INCOME RATIO

PAT MARGIN (%) DIVIDEND PER SHARE (Rs)

EQUITY PER SHARE DIVIDEND PAYOUT RATIO RETURN ON ASSET (%)
 FUTURE TRENDS IN BANKING SECTOR IN INDIA
The banking sector in India has undergone significant transformations over the years, and it continues to evolve at an unprecedented pace. With the advent of advanced technologies and changing
consumer preferences, the future of banking in India lies in embracing digital transformation. The key trends and innovations shaping the future of banking in India and the potential benefits they
hold for customers and the banking industry as a whole:

 RISE OF DIGITAL BANKING: Digital banking has emerged as a game-changer in India's financial landscape. The proliferation of smartphones and the availability of
affordable internet access have paved the way for a digital revolution in the banking sector. Today, customers can access a wide range of banking services
through mobile banking apps and online platforms, including account management, payments, transfers, and investments. As digital literacy and connectivity
increase, the majority of banking transactions will be conducted through digital channels, transforming the way Indians interact with their banks.

 ARTIFICIAL INTELLIGENCE AND DATA ANALYTICS: Artificial intelligence (AI) and data analytics are transforming the banking industry, enabling banks to offer
personalized services, enhance fraud detection, and improve operational efficiency. Advanced analytics help banks gain valuable insights from customer data,
enabling them to tailor products and services to individual needs. Additionally, AI algorithms aid in credit risk assessment, making loan approvals faster and more
accurate.

 BLOCKCHAIN AND CRYPTOCURRENCIES: Blockchain technology, which underlies cryptocurrencies like Bitcoin, has the potential to revolutionize various banking
operations such as cross-border payments, trade finance, and identity verification. Blockchain's decentralized and secure nature can streamline processes,
reduce costs, and enhance transparency.FINTECH COLLABORATION: This collaboration enables banks to leverage fintech innovations, to enhance their product
offerings and reach a wider customer base. Fintech companies bring agility, innovation, and customer-centric solutions to the table, while banks provide the
regulatory expertise, infrastructure, and customer trust. This synergy between banks and fintech companies holds immense potential for driving financial
inclusion and expanding access to banking services in rural and remote areas.

 ENCHANCED CUSTOMERS EXPERIENCE: The future of banking in India revolves around providing an enhanced customer experience. Banks are investing in
advanced digital channels, such as mobile banking apps and internet banking platforms, to offer seamless, personalized, and convenient banking services.
Customers can now perform various transactions, such as fund transfers, bill payments, and loan applications, from the comfort of their homes. The integration of
AI-powered chatbots and virtual assistants enables round-the-clock customer support, answering queries and resolving issues in real-time.
 CONCLUSION
To summarize, it's clear that the banking sector plays a pivotal role in our economy,
facilitating financial transactions, supporting businesses, and enabling personal financial
growth. As a group we defined banking as the backbone of our economy, enabling savings,
investments, and economic growth. E-banking emerged as a transformative force, enhancing
accessibility and efficiency. Our discussion on financial analysis underscored its crucial role in
understanding stock market trends and making informed investment decisions. Credit
appraisal was highlighted as essential for assessing borrower risk and maintaining financial
stability.
 OUR TEAM

Neha Pratyasha Tanisha Sutirtha Srinjana

Bhowmick Ghosh Routh Dasgupta Sinha
Pursuing Pursuing Pursuing Pursuing Pursuing
Economics Honours Economics Honours Economics Honours from Economics Honours Economics Honours from
from from Asutosh College from Asutosh College
Asutosh College Asutosh College Asutosh College
 THANKS!
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