BANKING SECTOR IN INDIA

1. MADE BY
SHUBHAM VISHWAKARMA
UNIVERSITY OF LUCKNOW

2. BANKING SECTOR IN
INDIA

3. BANKING SYSTEM
A banking system is a group or network of institution that provide
financial services for us. These institutions are responsible for operating a
payment system, providing loan, taking deposit and helping in
investments.
These consist of the Central bank, Commercial bank, Co operative bank
and development bank.
These banking system works with the help of different banking sectors.

4. TYPES OF BANKING SECTOR
BANKING SECTOR
SCHEDULED
COMMERCIAL
BANK
PUBLIC
SECTOR
BANKS
PRIVATE
SECTOR
BANKS
FOREIGN
BANKS IN
INDIA
REGIONAL
RURAL BANKS
SCHEDULED
COOPERATIVE
BANKS

5. SCHEDULED COMMERCIAL BANK
The schedule commercial banks which are included in the second schedule of RBI Act
1934 and which carry out the normal business of banking such as accepting deposits
giving loans and other banking services.
There are four different Scheduled Commercial Banks:-
PUBLIC SECTOR BANKS
PRIVATE SECTOR BANKS
FOREIGN BANKS IN INDIA
REGIONAL RURAL BANKS

6. PUBLIC SECTOR BANKS
A public sector banks is an organization which is
1. Owned by public authorities including central, state or local authorities, to the
extent of 50% or more.
2. Is under the top managerial control of owning public authorities.
3. Is established for the achievement of definite set of public purpose.
4. Is consequently placed under a system of public accountability.
5. Is engaged in an activity of business character.
There are 27 public sector banks in India including State Bank of India (plus its 5
associates) and 19 nationalized banks.
There two banks which have been categories by RBI as other public sector banks
IDBI and Bhartiya Mahila Banks.

7. PRIVATE SECTOR BANK
The private sector bank is an organization which is owned, managed and controlled
by private individuals or a group of individuals or both. This is also engaged in
business activity but with motive of profit maximization rather than public service like
in case of public sector banks.
There are 21 private banks including HDFC, ICICI BANK, AXIS, KOTAK MAHINDRA
BANK, YES BANK and 16 others.

8. FOREIGN BANK IN INDIA
A foreign bank is a type of international bank that is obligated of follow the regulation
of both the home and host countries. Because foreign banks loan limits are based on
the parent banks capital, foreign banks can provide more loans than subsidiary banks.
Foreign banks are present in India either as representative offices or as branches. A
bank may choose foreign banks branches to meet the needs of multi national
corporates customer.
There are 49 foreign banks present in India including Citi bank, Standard Chartered
Bank, HSBC bank, Deutsche bank etc.

9. REGIONAL RURAL BANK OF INDIA
Special category of schedule banks,
Formed under regional Rural Banks Act 1976.
50% ownership of government of India, 15% by state government and 35% sponsor
bank.
Each RRB is sponsored by a public sector bank which provides assistance in the
form of subscription to its share capital managerial and financial assistance and help
in the recruitment and training of personnel

10. SCHEDULED COOPERATIVE BANKS
Co operative banks in India registered under the co operative societies act the co operative
bank in also regulated by the RBI. They are governed by the banking Regulations Act 1949
and Banking Laws Act 1965.
These banks provide most services such as savings and current accounts, safe deposit
lockers, loans or mortgage to private and business customers. For middle class users, for
whom is bank is where they can save there money ,facilities like internet banking or phone
banking is not very important.
The co operative banking structure in India is divided into following main 5 categories:-
•Primary Urban Co-op Banks
•Primary agricultural credit Societies
•District Central Co-op banks
•State Co-operative Banks
•Lands Devlopment Banks

11. IMPORTANT PLAYER OF BANKING
SECTOR
STATE BANK OF INDIA
BANK OF BARODA
PUNJAB NATIONAL BANK
CANARA BANK
HDFC BANK
ICICI BANK
KOTAK MAHINDRA BANK
CITI BANK
AMERICAN EXPRESS

12. IMPORTANCE OF BANKING SECTOR
1. Acts as an intermediary
2. Economic development
3. Capital formation
4. Services to business
5. Reduces uses of currency
6. Mobilisation of savings
7. Raising the standard of living

13. GROWTH OF BANKING SECTOR
ROBUST DEMAND:- increase in working population and growing disposable income
will raise the demand of banking and related services. Rural banking is also expected
to increase in future.
INNOVATION IN SERVICES:- mobile banking, internet banking and various extensions
of facilities at the ATM station will improve the operational efficiency.
BUSINESS FUNDAMENTALS:- Healthy business fundamentals can be reflected to high
interested margins
POLICY SUPPORT:- The industry has heathy regulatory oversight along with credible
monetary policy by the Reserve Bank of India