TYPES OF BANK Presented by :- Surabhi Prajapati Somya Agrawal
Banks Commercial Regional Cooperative Banks Rural Banks Banks Non Scheduled Scheduled Banks Banks Indian Foreign Banks Banks Public Private Sector SectorState Bank Nationalized of India bank
SCHEDULED BANKS Scheduled commercial banks are those included in the second schedule of the Reserve Bank of India Act, 1934. For this, they have to satisfy three conditions: It must have paid-up capital and reserves of an aggregate value of atleast Rs. 5 lakhs. It is carrying on the business of banking in India. It must be a corporation or cooperative society and not a partnership or sole proprietorship firm.
SCHEDULED BANKSINDIAN BANKS FOREIGN BANKS Registered or incorporated in Registered or incorporated in India. their home country, not in They have their headquarter India. in India and can have They have their office and/or branches all over India. branches in India. They can also operate in They play an important role in foreign countries. shaping the attitude and policies of foreign govt., companies and their clients towards India.
PUBLIC SECTOR BANKS Public sector banks are banks in which the government has a major holding. At least 51% ownership is vested with the government. The shares of these banks are listed on stock exchanges.
STATE BANK OF INDIA Government of India State Bank Group entered in commercial State Bank of Hyderabad banking when it took State Bank of Patiala over Imperial Bank of State Bank of Travancore India and converted into State Bank of India on 1 State Bank of Bikaner & July 1955. Jaipur It was first one to make State Bank of Maysore public issue in 1993-94 State Bank of Saurashtra after which the share State Bank of Indore holding of RBI has come down to 68.93%.
NATIONALIZED BANKS In 1969, 14 banks with deposit base Andhra Bank of Rs. 50 Crores or more were nationalized. In 1980,, 6 more Punjab National Bank banks were nationalized. This step brought more than 90% of Indian Overseas Bank commercial banking in the public IDBI sector. The main function of nationalised Allahabad Bank bank is provide finance for the Syndicate Bank housing projects, health facilities and increase the chance to UCO Bank providinig the products and services to the people of rural areas. Dena Bank
PRIVATE BANKS All those banks in which majority of stake are held by private individuals The banks, which came in operation after 1991, with the introduction of economic reforms and financial sector reforms are called "new private-sector banks“ New banks are strategic in their thinking and operations.
NON SCHEDULED BANKS The banks which are not included in the 2nd schedule of RBI Act, 1934. These also have to maintain statutory cash reserve but not with RBI. Their banking activities are limited, e.g., they cannot deal in foreign exchange. The share of these banks are almost nil.
REGIONAL RURAL BANKS They were set up on the Features of RRB: recommendation of Narasimham The area of RRB is limited to only a Committee in 1975. region, comprising of some district The objective was to provide credit of a state and other facilities to small and These banks grant loan only to the marginal farmers, agricultural rural agriculture sector and small labours and artisans. artisans. RRBs are working in all states The lending rates would be some what lower than the commercial except GOA and Sikkim. banks. They are governed by Regional These are intended to eliminate Rural Bank act, 1976 money lenders. 50% capital is provided by central These banks are to supplement the govt., 15% by state govt., 35% by effort of cooperative banks. sponsoring public sector bank.
COOPERATIVE BANKS Cooperative banking is a Feature of cooperative banks: Government sponsored, supported small scale banking carried and subsidized financial agencies in on a no profit no loss basis India. Work on the principle of cooperation, for mutual cooperation and self help and mutual help. help. They function on “no profit no loss” Engaged in financing rural basis. Perform limited banking functions. and agricultural development. Some of them are scheduled banks They are established under but most are non- scheduled banks. Cooperative banks are financial the Cooperative Credit intermediaries only because a Societies Act of 1904. significant amount of their borrowings is from the RBI, NABARD, central and state government and cooperative apex institutions.