BANKING SECTOR

PGDM Div- A Group -1

Introduction
Bank - financial institution accepts deposits channels the money into lending activities Income Source interest rate on deposits interest rate on loans

Unorganized Indigenous banks: not controlled by the RBI. E.g.- Local money lender, Chit fund , private financiers. Organized banks: governed by the Banking Regulation Act, 1949 and the Reserve Bank of India Act, 1934.

RBI : Reserve Bank Of India

Central bank of the country supreme monetary and banking authority. Responsibilities : supervising, controlling and regulating the banking system. RBI & the Government of India exercise control over bank from the opening of banks to their winding up

Commercial Banks: Play a very important role for the upliftment of the society. Mobilizes savings of the people & Channelized them into productive uses. 3 types of Commercial Banks

Public Sector Banks:

Owned, Managed and Operated by the government . Nationalized Banks - 21 banks (e.g. Canara Bank , BOI) SBI and its 5 subsidies. (e.g. State Bank of Mysore , SB of Hyderabad) Other Public Sector Banks : e.g. IDBI

Private Sector Banks

Owned, Managed and Operated by the private bankers. Indian Banks: e.g. Axis Banks, ICICI. Foreign Banks : e.g. Barclays Bank, Deutsche Bank.

Regional Rural Bank

E.g.: Deccan Grameena Bank, Assam Gramin Vikas Banks. 14,475 rural banks in the country. provide credit to the weaker sections of the rural areas. like the small and marginal farmers, agricultural laborers, artisans and small entrepreneurs. Concessions by RBI like lower interest rates. Responsibilities : to develop agriculture, trade, industry and commerce in the rural areas.

Co- Operative Banks

Primary co-operative credit societies : to meet the credit need in cultivation and to promote the habit of savings among the farmer.

Central (or District) cooperative banks and state cooperative banks supports them. Co operative Banks have low minimum deposits.

 It is also classified as: Scheduled (Primary) Urban Co-operative Banks: e.g. Greater Bombay Co-operative Bank Limited. lend money only for non-agricultural purposes. small borrowers and businesses. Non-Scheduled Urban Co-operative Banks: e.g. Janaseva Sahakari Bank Ltd.
Scheduled Banks: Eligible for loans on bank rate from RBI.

Banks Selected By Us:

Public Sector: IDBI (Industrial Development Bank of India Limited) Private Sector: Axis Bank Co operative Banks: Greater Bombay Cooperative Bank Limited.

IDBI

Axis

Greater Bombay Co-operative Bank Limited. (GBC) Bandra (W)

Branch Manger Ms. Hemlata Puthran Areas Of Concern & Ratings: 1. Fighting Inflation: Depends on RBIs bank rates GBC- interests rate for shorter time period. GBC rates: good Our ratings: Could have been better

2. Support in Higher Education : No support in higher education No attractive education loan schemes But encourages good students by felicitating them. GBC rates: Good Our ratings: Could have been better 3. Technological Advancement: Started Mobile Banking system In future i banking system GBC rates: Good Our ratings: Could have been better

4. Promotion of Ethical Behavior: Trains staff for proper customer interactions Treats senior citizens with respect GBC rates: Excellent Our ratings: Good 5. CSR activities: Senior citizens picnics / get together. Distribution of sweets to unprivileged children during festivals. All CSR activities are initiated by different branches.. Its not centralized. GBC rates: Excellent Our ratings: Excellent

6. Scope of Improvement: GBC considers Saraswat Co-operative Bank Ltd. Abhyudaya Co-operative Bank Ltd. Shamrao Vithal Co-operative Bank Ltd. As their competitors in all aspects and would like to develop all the good aspects of these banks.

Conclusion