This presentation gives an overall view of the banking industry in India, right from the history to the latest rules and regulations.

1. BANKING INDUSTRY IN INDIA

2. Introduction: Evolution of Indian banking industry
Post
independence
Pre - independence
The 21st Century
banking

3. 1 • 1870 - Bank of Hindustan
2 • 1934 - RBI Act
3 • 1949 - Banking Regulations Act
4 • 1955 - Formation of SBI
5 • 1969 - Nationalisation of 20 banks
6 • 1980 - Nationalisation of 6 banks
7 • 1993 - Liberalization and entry of private sector
8 • 1995 - 2000 - Electronic funds transfer

4. Indian Banking –The engine for sustaining India’s growth
agenda

5. Public sector banks
Private sector banks
RBI
Foreign banks
Co-operative banks

6. ICICI Bank
Top five
Private Sector
Banks
HDFC Bank
Axis Bank
Yes Bank
Kotak
Mahindra bank

7. SBI
Punjab
National Bank
Top five Public
Sector Banks
Bank of
Baroda
IDBI Bank
Syndicate
Bank

8. Financial products of banks

9. Market Capitalisation

10. Who regulates the financial sector in India?

11. Banking Amendment bill,2012

12. Changing Industry Dynamics by new rules

13. Impact of Changing repo rate by RBI

15. Growth drivers of Indian banking industry

16. Pest Analysis of banking industry

17. Porter’s five forces model:

18. Factors that affect the profitability
•
•
•
•
•
•
•
•
•
•
•
Non Performing Assets(NPA)
Net Interest Margin (NIM)
Business & Profit per employee
Cost per transaction
Utilization of technology and human resources
Base rate, MSF, repo rate, CRR and SLR
Basel norms – II and III
Operational cost
Customer Acquisition
Allied banking services
Revenues from fees and commission.

19. Opportunities in banking
 Mortgages to cross Rs.40 Lakh crores by 2020.
 Wealth Management to be a big business.
 Rapid growth of branches and ATM.
 Mobile banking to see huge growth.
 Infrastructure financing to reach over Rs.20 trillion
on commercial banks book by 2020.
 New Models to serve the Small & Medium
Enterprises (SME)

20. • In 2011-12, the industry faced major concerns in regards
to deteriorating asset quality, with gross non-performing
assets (NPAs) of banks registering a sharp increase in
different sectors such as aviation, infrastructure and
power.
• The present rates:
Bank rate – 8.75%
CRR – 4%
SLR – 3%
Repo rate – 7.75%
Reverse Repo rate – 6.75%

27. M&A in banking industry
Private Sector Banks Merged with other banks
1. Global Trust Bank (merged with Oriental Bank of Commerce - 14th
August 2004)
2. Bank of Punjab (merged with Centurian Bank, which was later on
merged with HDFC Bank)
3. Centurion Bank (merged with HDFC Bank)
4. The Nedungadi Bank (merged with PNB)
5. The Bank Of Rajasthan (merged with ICICI in 2010)
6. Bharat Overseas Bank (Merged with Indian Overseas Bank)
7. Lord Krishna Bank (Merged with Centurion Bank of Punjab, which
was merged with HDFC Bank)
8. The Sangli Bank (merged with ICICI Bank in 2006)
9. The Ganesh Bank of Kurundwad (merged with Federal Bank)

28. Conclusion: “Banking beyond banking”

29. Key challenges to banking industry

31. References:
 www.rbi.org.in
 www.ibef.in
 http://www.dnb.co.in/News_Press.asp?pid=117
9
 http://en.wikipedia.org/wiki/File:Scheduled_ba
nking_structure_in_India.png
 http://www.infosys.com/finacle/solutions/thou
ght-papers/Documents/banking-in-Indiaevolution-in-technology.pdf
 http://www.kpmg.com/IN/en/IssuesAndInsights
/ArticlesPublications/Documents/KPMG_ICC_In
dian_Banking_The_engine_for_sustaining_India
s_growth_agenda.pdf

32. A presentation by
Valliappan.P (128939)
Satya Sharon.V (128959)
THANK YOU