GROUP MATES

SELVALAXMI

BHAVYA

GEETA

SANJANA

BHARATI

INTRODUCTION
Service organization selling banking services. Hold the saving of the public. Means of payment for goods and services. Necessary finance for the development of business and trade. Resulted in upliftment of weaker section of the society.

BANKING OVERVIEW
Major participants of the Indian Financial system. Oldest participants of the market. New entities in the financial market place.

Historical perspective
Bank of Hindustan 1870. Started with establishment of three presidency banks. Amalgamated to form imperial bank of India-1921. RBI Act-1934. Banking Regulation act-1949. RBI acquired the control of the Imperial Bank of India renamed as State Bank of India-1955. SBI took over control of 8 private banks, making them 100% subsidiaries-1959.

CONTINUED.
Total number of banks reduced from 566 in 1951 to 85 in 1969. Government nationalized 14 banks -1969. 6 more banks-1980. Entry of new private sector banks-1993.

BANKING STRUCTURE IN INDIA.

Public sector banks Private Sector Banks

SBI & subsidiarie s

Nationalize d Banks

Regional rural banks

Old Private Sector Banks

New Private Sectors Banks

STATE BANK OF INDIA(SBI) AND ITS SUBSIDIARIES:

Largest bank in India. 9000 branches in India and 51 foreign offices in 32 countries. State bank of India is the successor of imperial bank of India. State bank of India came into being on 1-7-1955 through the state bank of Indian act 1955. SBI shares and bonds are listed for trading on all the major Indian stock exchanges. SBI has the largest number of ATM in India.

ASSOCIATE BANKS:
State bank of Bikaner and Jaipur(SBBI) State bank of Hyderabad(SBH) State bank of Indore(SBIr) State bank of Mysore(SBM) State bank of Patiala(SBP) State bank of Saurashtra(SBS) State bank of Travancore.(SBT)

OTHER NATINALIZED BANKS:

(a) Allahabad banks. (b) Andhra bank. (c) Bank of Baroda (d) Bank of India (e) Bank of Maharashtra (f) Canara bank (g) Central bank of India (h)Dena bank (i) Indian bank (j) Indian overseas bank (k)Oriental bank of commerce (l) Punjab and Sind bank. (m) Punjab national bank (n) syndicate bank (o)UCO bank (p)union bank of India (q) united bank of India (r) Vijay bank

PRIVATE BANKING
The first private bank in India to be set up was IndusInd bank. ING vysya, yet another private bank of india-1930

IDBI ranks the tenth largest development bank in the world as private bank in India.

LIST OF PRIVATE BANKS IN INDIA.

Axis Bank Bank of Punjab Bank of Rajasthan Catholic Syrian bank City union bank Development credit bank Dhanalakshmi bank Federal bank HDFC bank ICICI bank IndusInd bank ING Vysya bank Jammu and Kashmir bank Karnataka bank Karur vysya bank Laxmi Vilas bank South Indian bank Yes bank.

Savings deposit
Current deposit
Deposit structure

Fixed deposit

Recurring deposit

y Minimum net worth - rs 200

crore. y Promoters net worth rs 200 crore. y Capital adequacy requirement (CRA) above 12% y Cannot set up subsidiary during initial 3years y Requirements of priority sector 25% y Branches in rural sector.

y Cash reserve ratio (CRR) y Statutory liquidity ratio (SLR) y Repo rates(RR) y Reverse repo rates (RRR) y Bank rates

1.

2.

3. 4. 5. 6.

: Deposits From Public : Saving deposits current deposits Fixed deposits Borrowings from Banks : Inter-bank borrowings and Inter-bank deposits Borrowings from RBI Borrowings from finantial institutions. Borrowings from abroad Paid-up Capital/Reserves

1. 2. 3. 4. 5. 6.

Term loans Overdraft Cash Credit Loans and Advances Packing Credit Bill Purchase and Discount 7. Inland and Foreign Investment in Approved Securities and Other Shares and Securities.

y Access the capital market funds y SCR AND CRR y Deregulation of interest rate y Capital Adequacy Income

Recognition y Loan delivery system y Autonomy for PSBs

y Deposits. y Advances.

1.) Fund Oriented. 2.) Non Fund Oriented. y International Banking. y Consultancy. y Miscellaneous.

Market Segmentation is important because bank satisfy the various types of customer such as rural customers, urban customers, high earning and low earning customers, small scale and large scale entrepreneurs and so on.

SEGMENTATION IN BANKS

AGRICULTU RAL SECTOR

HOUSEHOL D SECTOR

INSTITUTI ONAL

SECTOR.

SERVI TRADE AND CE COMME

RCE

INDUST RIAL

y Depends on interest charged on loans, overdraft, cash

credit and charges for various services. y Important for raising number of customers. y Potential customer or investor frame their investment decision on the basis of interest received. y Consider the value satisfaction variable.

y Banks use two fold strategies :

a.) Interest and commission to be paid to the customers. b.) Interest and commission to be paid by the customers.

y Personal promotion

person to person. y Impersonal promotion Advertising, publicity and sales promotion measure.

y Locational decision. y Places accessible to the actual and potential users. y Neat and clean premises. y Security arrangements.

y Internal marketing to make the business customer

oriented. y Skill for social interaction and tolerance for inter personal contact.

y Logos, symbols, attractive brand names,etc.

Financial Market Regulators The Banking System NBFCs The Capital Market Deregulation of banking system

1.FINANCIAL MARKETS:
-Role of Private Sector Institutions -Competition among the Financial Intermediaries.

2.REGULATORS
-RBI -SEBI -IRDA -SUPER REGULATOR

3.THE BANKING SYSTEM: -Liberalization -Role of PSBs

4.DFIs: -Access to SLR funds reduced.

-No more Convertibility Clause. -Extension of Capital adequacy norms. -Move to Universal Banking.

5.Deregulation of Banking System:

-Introduction of Prudential Norms -Deregulation of interest rates -Special Recovery Tribunals -Set up of ALMs -Establishment of Credit Information Bureau -Introduction of derivative products

I.T IN BANKING

y Telephone banking y Account information through fax, telex and emails. y Usage of satellite communication system for real time

exchange of information between branches and head office.

y Online banking y Mobile banking services are provided through SMSes ,

mobile web and more recently through smart phone apps.

y Future in mobile banking: smart card embedded

mobiles.
y ATM- automated teller machines

y Competition from foreign banks and new private

sector banks.
y Technological advancement y Innovation y Diversified activities y Customer awareness and satisfaction

y Development of skills of banks personnel y Profitability nature

Banks have to focus on:  Product development and management skill  Skills for working in electronic environment  CRM, etc

y Corporate governance

Mission statement of:

FULLFORM OF:
NABARD AGMARK III ADR, GDR CRISIL

Q: WHEN WAS THE STATE BANK OF INDIA NATIONALISED? Q: WHAT WAS THE NAME OF SBI BEFORE NATIONALISATION?