resource management pptx failure of banks in india

2. SUBMITED BY:
Diksha Kumari
Isha Tadhiyal
Divya Bhardwaj
Diksha Kalra

3. •A bank failure occurs when the bank is not able
to meet its obligations to its depositors or other
creditors.
•A bank fails economically when the market
value of its assets declines to a value that is less
than the Market value of its liabilities.
•The insolvent bank either borrows from the
solvent bank or sells its assets at a lower price
than the actual value.

4. • The bank may also be taken over by the
regulating government agency if shareholders
are regulatory minimum.
• The failure of bank is generally considered to
be more important than the failure of other
types of business firms.
• Research have shown that the market value of
the customers of the failed banks is adversely
affected at the date of the failure
announcement.

5. • BAD LOANS: Loans comprise a large part of
traditional banking business, along with
holding depositors money.
• ASSET/LIABILITY MISMATCH: When a bank’s a
assets are mismatched to the liabilities
supporting them, severe problems can arise.
The results can be devastating and can lead to
huge loss.

6. • NON BANK ACTIVITES: Over the years, banks
have dabbled in non-traditional business
looking to improve profitability.
• RISK MANAGEMENT DECISIONS: All banks
have the extensive risk management groups
that constantly quantify the absolute level of
risk in the bank’s portfolios.
• REGULATORY ISSUES: The bank may be
located in a rogue country or the bank could
be engaged in the illegal activates such as
money laundering.

7. • Banking sector is regarded as an indispensable
part of the economy of every country.
• It is always been one of the most vital sectors
for the economy to function as there is a
significant increase in the volume of financial
transactions.
• Some of the factors that contributed to it
includes economic growth, an increase in
money supply, growth of banking habits, an
increase in trade and commerce etc.

8. • Due to demonetization the general public, trade,
commerce, and industry seriously affected.
• The banking sector is considered to as the backbone of
the Indian economy and offers various carrier
opportunities to the students from different fields.
• It is the most profitable careers especially for the
people who are looking for job in govt. sectors.
• Though the 9-5 routine job profile and constant nature
of work involved drives many people away from bank
jobs.
• According to the experts, in the next five year, this
sector has the potentional to provide jobs over
7,50,000.
• Last year alone, nearly 60,000 people were recruited
for positions at government funded banks.

9. • The banking sector provides job opportunities
to all the candidates irrespective of their
educational backgrounds.
• The banking sectors mainly recruits for three
posts- Clerical cadre, Management and
Trainee (MT), and Probationary Officer (PO).
Other opportunities in this sector are financial
service representatives, bank teller, bill and
account collector, loan officers, financial
managers, bookkeeping and audit officer.

10. • Nearly 26 years later, banks today are ready to
bend upside down to satisfy the needs of
customers.
• The facilities such as net banking, mobile
banking, credit card, De-Mat accounts and
mutual funds investments have been made
available to incorporate customers completely
in the bank environment.

11. • Banking headlines over the last few months have been dominated
by a decline in specific bank share prices that have highlighted both
the broader credit issues in the economy and the lack of speed in
recognition of Non-Performing Assets (NPAs).
• The four primary issues that the recent news around Indian banks
bring to the fore are:
a. Poor decision making due to a lack of capacity to judge project
quality.
b. A structural asset-liability mismatch for the banks due to longer-
dated assets and short-dated liabilities.
c. A delay in recognizing NPAs on the books.
d. Outright fraud and absence of fundamental corporate governance
standards.

12. • Over the last few years, significant steps have
been taken to clean up the Indian banking
system.
• Various types of banks such as the public sector,
private sector and co-operatives are all vital cogs
in the wheel for the Indian economy and are all
needed for the next phase of economic growth.
• Media reports say the parliamentary committee
on estimates, headed by Murli Manohar Joshi,
has invited former Reserve Bank of India (RBI)
governor Raghuram Rajan to brief it on the
mounting non-performing assets (NPAs) of Indian
banks.

13. • Data compiled by Ashwin Ramarathinam of Mint
shows the PSU banks have recorded close to ₹ 1.7
trillion in losses between December 2015 and
June 2018.
• more than 80% of ₹ 2.11 trillion capital infusion
that the government has announced.
• During this period, many PSU banks such as
Allahabad Bank, Andhra Bank, Bank of
Maharashtra, Central Bank, IDBI Bank, Syndicate
Bank, UCO Bank and United Bank have seen their
gross NPAs as a percentage of their loan books
growing around two and half times.

14. • To reduce the number of bank failures, banks
are severely limited in what they can do.
• Banks are required to maintain a minimum
level of net worth as a fraction of total assets.
• Regulators from the FDIC regularly perform
audits and other checks of individual banks to
ensure they are operating safely.

17. • The yes bank failure is a most recent and
appropriate example of bank failure in India.
• Yes bank incorporates in the year 2003 with a
market capital of Rs. 57606.57 crore.
• The bank’s share prices drastically came down.
• The main reasons of the bank failure were
that the bank had no serious inventors.

18. • The bank also mentioned that it was
witnessing constant outflows of cash from the
depositors.
• The bank was also making regular loses form
last four years.
• Even the bank had government related issues.
• This intern at the lead to decline in stock
prices and failure.

19. • As banking sector is one of the most important
part of an economy.
• And in developing county like India this has to
work more for the economy.
• But the continues failure of the Indian banks in
different ways can adversely affect our country.
• To achieve economic development RBI, the
Government and the other banks have to work
together.