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Presented By
Souvik Banerjee
Asst.Professor,SSIMS Goa
An Introduction to Indian
Banking Industry
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Categories of Banks in India
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y 1.Scheduled Banks
Banks where total deposit kept by all its customer is
in excess of Rs.200 crores are called Scheduledbanks. These banks are included in the Second
schedule of Reserve Bank of India(RBI)Act,1934
y 2.Non-scheduled banks
All banks where total deposit kept by the customers
is less than or equal to Rs. 200 crore are non-
scheduled banks
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Categories of Scheduled Banks in
India
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1. Scheduled Commercial Banks
2. Scheduled Co-operative Banks
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Types ofCommercial Banks in India
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Public Sector Banks(PSBs):In this banks the Central
Government has a majority ownership. That means, if the
ownership of the bank is divided into 100 equal parts,
central government owns more than 50 parts of it. Public
sector banks are of two types 1)State bank of India & itsAssociates (like State bank of Patiala, State Bank of Mysore
etc.)2)Other nationalised Banks (like Vijaya Bank,
Corporation Bank etc.)
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Types ofCommercial Banks in
India(cont.)
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Private Banks:This banks are owned by private
Indian entities like corporate houses and
individuals.Exmples of this type of banks are
ICICI Bank, Axis Bank,HDFC Bank,Yes Bank, Bank
of Rajasthan etc. Private sector banks are broadly
classified in to two types; New private sector
banks like ICICI Bank, Axis bank etc. and old
private sector banks like Catholic Syrian Bank ,
Karnataka Bank etc.
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Types ofCommercial Banks in
India(cont.)
y Foreign Banks:This banks are owned by multi
national/non-Indian entities. Examples of this type
of Banks are Citibank India is owned by US basedCiti group, similarly Deutsche Bank India is owned
by Germany based Deutsche Bank.
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Co-operative Banks in India
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Urban Cooperative Banks:Cooperative banks areformed by a group of members. Urban Cooperative
Banks mainly formed to mobilize savings from
middle and low income groups in urban areas and
provide credit to them for various activities.
State Co-operative banks:This banks are set up with
state government partnership to help agricultural
and rural development.
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Example of a state cooperative
bank & its functioning
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Andhra Pradesh State Cooperative BankLimited(APCOB) is a scheduled state cooperative
bank for the State of Andhra Pradesh (remember that
scheduled banks have deposit base in excess of
Rs.200 crores).
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Example of a state cooperative
bank & its functioning(Cont.)
y Under affiliation of APCOB 22 District Cooperative
Central Banks(DCCBs) are in place. These DCCBs in
turn have 563 Branches and 2746 Primary
Agricultural Cooperative Societies(PACS) through
which, developmental agricultural credit is
provided to rural population
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NBFC-Non BankingFinancial
company
y What it is?
NBFCs are entities where common man keeps his
money and NBFCs invest this money for some
productive purpose in the form of loans. Thiscompanies(NBFCs) earn their profit and running
cost from the difference in the interest rate charged
on loans and paid on deposits.
Example:Peerless,Prime Financial,CitiFinancial,Margadarsi Financiers etc.
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Difference between a bank and an
NBFC(Cont.)
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y An NBFC can not participate in the payment
system(That means they can not issue cheque book to
their customers);only banks can do it
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Why some banks own NBFCs?
y NBFCs can only accept deposits for a fixed term,
that is why they are less regulated than a bank, to
take advantage of less regulation, banks often set up
their own NBFC like Citi Financial is owned by
Citigroup which also owns Citi Bank .
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THANK YOU
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