2. INTRODUCTION
“ A Bank is a Financial Institution and a Financial
Intermediary that Accept Deposits and Channels those
Deposits into Lending Activities, either Directly or
through Capital Market. A Bank Connects Customers with
Capital Deficits to Customers with Capital Surpluses. ”
3. HISTORY OF INDIAN BANKING
Developed During British Era.
British East India Company Developed 3 Banks:-
i. Bank of Bengal-1809
ii. Bank of Bombay-1840
iii. Bank of Madras-1843
These 3 Banks were Amalgamated and called Imperial Bank usually know as
State Bank of India.
Reserve National Bank was Established in 1935.
In 1969,14 Major Banks were Nationalized and in 1980, 6 Major Private
Sector Banks were taken over by the Government.
4. OLD AND NEW BANKING SYSTEM
OLD BANKING SYSTEM NEW BANKING SYSTEM
Possibility of Human Error. All Work is Computerized Now.
Time Consuming. Very Fast Process.
Service Oriented. Customer Relations + Service.
Over Draft Facility was not
Available.
Over Drafts are Available.
Passing of Cheques was Delayed. Now it has become an Immediate
Process.
Limited use of Technology. Now Banking was became One
Click Process.
5. BANKING SECTOR ROLE IN INDIAN ECONOMIC GROWTH
CONTRIBUTION TO GDP CONTRIBUTION TO EMPLOYMENT
61
67
45
53
FY07 FY13
Deposits to GDP Ratio Credit to GDP Ratio
Industry Segments Total Employment
FY13(in ‘000s)
% of Total
Banking 1,100-1,200 25-30%
Insurance 200-300 4-5%
NBFC 25-30 0-1%
Mutual Funds 15-20 0-1%
Financial
Intermediaries
2,500-3,000 65-70%
Total BFSI 4,000-5,000 100%
6. BANKING STRUCTURE IN INDIA
FSDC
Sub-Committee of FSDC
Reserve Bank of India
Scheduled Banks Unscheduled Banks
Public Sector
banks (26)
Private Sector
banks (21)
Regional Rural
Banks (82)
Foreign Sector
Banks (36)
Co-Operative Banks (84)Commercial Banks (165)
New (7)
Other Public
Banks (1)
Other Nationalized
Banks (19)
SBI & associate
Banks (6)
State Co-
operative
(31)
Urban Co-
operative
(53)
Old (14)
7. RESERVE BANK OF INDIA
Was Established in April 1, 1935.
Headquarters are Located in Mumbai, Chennai, New Delhi, Kolkata.
It is Fully Owned by Government.
It was Constituted for the Need of the following:-
i. To Regulate the Issues of Banknotes.
ii. To Maintain Reserves with the view of Securing Monetary Stability.
iii. To Operate the Credit and Currency System of the Country to its
advantage.
It play following Roles in our Country:-
i. Bank of Issue.
ii. Regulator-Supervisor of the Financial System.
iii. Issue of Currency.
iv. Development Role.
v. Controller of Credit.
8. PRIVATE SECTOR BANKS
PUBLIC SECTOR BANKS
FOREIGN SECTOR BANKS
The “Private-Sector Banks" are Banks where
Greater Parts of Stake or Equity are held by the
Private Shareholders and not by Government.
The Private Sector banks are Split into Two Groups
by Financial Regulators in India, Old and New
Public Sector Banks are Banks where a Majority
Stake is held by a Government. The shares of these
banks are listed on stock exchanges.
There are a total of 27 PSBs in India
These are the banks whose 1-2 branch are opened in
the foreign country for people’s convenience.
They Obligated to Follow the Regulations of Both the
Home and Host Countries.
9. REGIONAL RURAL SECTOR BANKS
URBAN AND STATE CO-OPERATIVE SECTOR BANK
Set up on October 2, 1975.
The Banks provide Credit to the Weaker Sections
of the Rural Areas.
Involved in local Development and Contribute to
the Sustainable Development of their
Communities.
They help in Increasing the Banking in the Areas
where other Banks are Less Present.
They Play an Influential Role in the Economic
Growth of the Country.
10. CONCLUSION
“ The Reforms to the Old Banking system with the Advent of
Technology has bought In Dramatic change in its Functioning and has
Increased Customer Relationship… ”
