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Banking Industry
The document provides an overview of the banking industry in India. It discusses that banks accept deposits and channel those deposits into lending activities. It then outlines the major functions of banks which include accepting deposits, lending money, remittances, locker facilities, and foreign exchange business. The document notes that the first bank started in India in 1786 and discusses some key milestones in the development of the banking industry in India such as the nationalization of banks in 1969 and liberalization in 1991. It categorizes the banking industry into public sector banks, private sector banks, and cooperative sector and provides details about each. The document also discusses challenges faced by the banking industry such as deregulation and new rules, and future outlooks around risk management
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Banking Industry
- 1. BANKING INDUSTRY Tasheen Sheikh TulikaChopra Varsha Debnath Vasvee Gupta Vidhi Chauhan Yamini Baghel
- 2. BANK • A bankis a financial institution that accepts deposits and channels those deposits into lending activities.
- 3. Functions Of Banks •Accepting Deposits • Lending Money • Remittances (A remittance is a transfer of money by a foreign worker to his or her home country.) • Locker’s Facility • Foreign Exchange Business
- 4. BANKING INDUSTRY IN INDIA •First bank started in 1786. • RBI became central bank in 1934. • Nationalized in 1969. • Liberalization occurred in 1991.
- 5. BANKING INDUSTRY The PublicSector Banks(PSBs), which are the base of the Banking sector in India account for more than 78 per cent of the total banking industry assets. The Private Sector Banks are making tremendous progress. They are leaders in Internet banking, mobile banking, phone banking, ATMs
- 6. INDIAN BANKING INDUSTRY • TheIndian Banking Industry can be categorized into 1.non-scheduled banks 2.scheduled banks.
- 7. Types of banks • • • • Commercialbank: Community banks: Co-operative banks: Private banks:
- 8. TYPES OF BANKS • • • • Offshorebanks: Savings bank: Ethical banks: Islamic banks
- 9. Public Sector Banks Private Sector Banks Co-operative Sector •Letstake State Bank of India and its associate banks called the State Bank Group •20 nationalized banks •Regional rural banks mainly sponsored by public sector banks •Old generation private banks •New generation private banks •Foreign banks operating in India •Scheduled co-operative banks •Non-scheduled banks •State co-operative Banks •Central co-operative banks •Primary Agriculture Credit Societies
- 10. Entry regulation The requirementsfor the issue of a bank licence vary between jurisdictions but typically include: • Minimum capital • 'Fit and Proper' requirements for the bank's controllers, owners, directors, and/or senior officers • Approval of the bank's business plan as being sufficiently prudent and plausible.
- 11. Major players inthe Indian Banking sector • • • • • • • • • State Bank Of India. Allahabad Bank. HDFC. Uco Bank. Punjab National Bank. Bank of Baroda. Canara Bank. ICICI Bank. Axis Bank.
- 12. HERFINDAHL INDEX: Publicsector source: Capitaline Database
- 13. HERFINDAHL INDEX: PrivateSector source: Capitaline Database
- 14. Challenges faced by Bankingindustry in India Deregulation: This continuous deregulation has made the Banking market extremely competitive with greater autonomy, operational flexibility and decontrolled interest rate and liberalized norms for foreign exchange. • New rules: Banks are transforming to universal banking, adding new channels with lucrative pricing and freebees to offer. •
- 15. Economies of scale •banking consolidation will result in a small number of large monopoly banks that can achieve substantial economies of scale and outperform small competitors. • But research suggests that small banks are sometimes more efficient than their large counterparts. One competitive strategy undertaken by numerous small banks is agricultural lending. • it is not necessary to be large to be efficient for the banks with loan specialization.
- 16. REVENUES • Growth havebeen more qualitative. • Based on then projections made in the “India Vision 2020”. • Total asset of all scheduled commercial banks is estimated at Rs.40,90,000 crores(end march 2012). • Expected to grow at an annual composite rate of 13.4%.
- 17. Future outlook • • • • RISK MANAGEMENT. CONSOLIDATION. GLOBALIZATION/OVERSEAS EXPANSION. TECHNOLOGY.
- 18. Job Opportunities forMBA in Banking Sector. • Specialist Officers. • Loan Officers. • Assistant Manager.
- 19. I Public sectorBanks recruit mainly graduates , MBAs,CAs and CFAs at the entry level on the basis of All India Level examination. • However professionals like engineers, doctors, technologists, lawyers, ex-defence officers etc are recruited on senior positions through All India tests. II Private sector/Foreign Banks prefer to take MBA's, CA's etc at junior positions • through Campus recruitment and interviews. • However, at the senior positions they opt for experienced bankers. • Thus the officers from Public sector Banks become the natural choice for such positions. • Thus job-hopping has become an well-accepted norm in the Industry.
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