this ppt was made for a college assignment it has information latest upto mar 2016. i hope it helps you...........

1. PERFORMANCE OF
COMMERCIAL
BANKS IN INDIA

2. OBJECTIVES
• To understand the key reforms introduced in the banking sector.
• To study the impact of reforms on the financial performance of
banks
• To study the financial performance of public and private sector
banks

3. Indian Banking System can be
segregated into three distinct phases
they are-
Phase--I Pre-Independence Period (from 1786 to 1947)
Phase-II Post-Independence pre reforms (Nationalization of
Indian Banks and up to 1991 prior to Indian banking sector
reforms)
Phase-III Post Nationalization (from 1991to till date).

4. PRE-INDEPENDENCE PERIOD
Number of Banks and Deposits of Banks in India from 1870To 1935 (Rupees in Crores)
Year end of
December
No. of banks Deposits
1870 8 1263*
1880 10 1543*
1890 13 2861*
1900 20 3427*
1926 95 215
1932 106 225
1935 124 245
(Report on currency and finance,2006-08 vol.4)(*amt in lakhs)
Banking in India originated in the first decade of 18 centuryThe General Bank of India, which
came into existence in 1786.

5. POST INDEPENDENCE PRE REFORMS
Year end Rural
centres
Semi-urban
centres
Urban
centres
Port
towns
total Population per
batch
June
1969
1443 3337 1911 1496 8187 65000
Dec 1975 6807 5598 3489 2836 18730 31660
Dec 1980 15105 8122 5178 4014 32419 20481
Dec 1985 30185 9816 6578 4806 51385 14381
Dec 1990 34791 11324 8042 5595 59752 13750
Branch expansion of commercial banks from 1969 to 1990
(Source-report on currency and finance 2006-08,vol.4)
In 1949, the Banking RegulationAct was enacted which empowered the Reserve Bank of India (RBI) "to
regulate, control, and inspect the banks in India .

6. POST NATIONALIZATION
• In the early 1990s the then Narasimha Rao Government embarked on a policy of
liberalizations and gave licenses to a small number of private banks, which came to be
known as New Generation tech-savvy banks.
• It included banks such as UTI Bank(now re-named asAxis Bank), ICICI Bank ,HDFC
Bank etc..
• This move, along with the rapid growth in the economy of India, kick started the
banking sector in India, which has seen rapid growth with strong contribution from
banking industry.

7. STRUCTURE OF BANKING IN INDIA

8. BANKING DURING 2001TO 2011
• RBI had issued new guidelines in January 2001 for the entry of new private sector banks
• Voluntary Retirement Scheme.
• The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI)Act,
2002
• KnowYour Customer (KYC) norms in November 2004.
• Corporate Debt Restructuring Mechanism (CDRM) was developed in August 2001.
• During the year 2008-09, loans to Housing Financing Companies (HFCs) were included within the purview of
priority sector loans with a maximum limit of Rs.20 lakhs per dwelling unit per family RBI also advised the banks
in August 2009 to issue collateral free loans up to Rs.5 lakh for the Micro and Small Enterprises (MSE) sector.

9. FINANCIAL INCLUSION
Financial inclusion is expected to make
significant changes in the economy ,
especially the rural economy , which is
expected to witness a revolution in
availability of financial instruments mainly
because of-
PMJDY
gold monetization scheme
MUDRA
which will operate through the banking
system will also ensure regularity of flow of
liquidity in households and therefore
opportunities for investment.

10. DEPOSITS
The so called credit-to-deposit ratio has surged to 77.6% in mar 2016 from 76.5% a year earlier
indicating that banks are lending a bigger portion of every Rs 100 taken as deposits.
Source-RBI reports

11. DIGITALTRANSFORMATION IN BANKING
Sr.
no
Type of bank Name of the bank Digital banking products and services
1 Public sector SBI In-touch, InCube (Start-up Branch), ExclusiF (Wealth Management),
Buddy (Anyone, Anytime, Anywhere), SBI Quick (Missed Call Banking),
SBI Online Customer Acquisition Solution (OCAS) and SBI Self Service
Kiosks (Bank @ Your Service 24x7), e-Smart SME (e-Commerce Loan),
e-auctions and e-CRM and SBI mingle
2 Private sector ICICI bank RailTicket Booking on Website (IRCTC), etc
3 Foreign bank Citi bank e-Core Banking through ATMs
4 Wallet banking paytm Online Mobile Recharging, Online Bill Payments, Online BusTravel,
Credit and Debit Card Payments, Net Banking, Mobile Wallet, etc
5 Payment bank Tech Mahindra –
Mobo Money
A first of its kind “Tap N Pay”, Contactless Digital Payment Solution
(Near Field Communication)
DIGITALTRANSFORMATION IN BANKING
Digital banking products and services provided by various outfits

12. NON PERFORMING ASSETS
In recent years, the gross NPAs of banks have increased from 2.3% of total loans in 2008 to 4.3% in 2015 .
The combined net loss of 20 public sector banks (PSB) stood at Rs 16,272.34 crore for the fourth quarter
ended March 2016 as bad loans situation worsened.

13. EFFECTS OF BREXIT
• “As risk aversion sets in, there would be a decline in financial markets and India would see this
impact along with other nations. But as trade strategies are reworked there could be potential
advantages in the form of better market access for India to the EU and Britain,” Ms.
Bhattacharya said in a statement.
• The decision led to a sharp fall in the domestic market as well as in the rupee following which
the government and the RBI said the economy has enough “firepower” to deal with the
situation.

14. CONCLUSION
Income is rising, but profits sputtering
Important indicators that give a snapshot of India’s banking industry

15. …and NPAs have risen
Meanwhile , returns have flattened

16. But some good news :Cashless banking is on the rise

17. • With growing bad loans it will be a challenge for the banking sector to come out of it. we need
to take lessons from foreign lands on how to resolve bad loans crisis.
• Given the focus on inclusive growth, banks are also expected to renew efforts to broaden.
• Implementation of basel III
• Stressing that cleaner balance sheets will lead to future loan growth for banks, RBI
chief Raghuram rajan said a "deep surgery" is must for the clean-up that would require an
"anaesthetic" in the form of recognising NPAs on their books.

18. THANKYOU