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A Presentation ON
Submitted To:
Indian Banking SectorSubmitted By: Anand Tiwari Richa Singh Kaharwar Tosh Kumar Keshri
Dr. Sujata Parwani
WHAT IS BANK? A Bank is a financial institution whose primary
activity is to act as a payment agent for customer and to borrow and lend money.An institution where one can place and borrow
money and take care of financial affairs; A branch office of such an institution.The first modern bank was founded in Italy in
Genoa in 1406, its name bank of St. George.
FUNCTIONS OF BANKAccepting deposit from public/ others (deposit). Landing money to public (loans). Transferring money from one place to another
(remittance). Acting as trustees. Keeping valuable in safe custody Government business
TYPES OF BANKPublic sector Banks Private sector Banks Cooperative Banks Development Banks
PUBLIC SECTOR BANKSCentral Bank of India Corporation Bank State Bank of India Bank of India Dena Bank Indian Overseas Bank
PRIVATE SECTOR BANKSPrivate BankICICI Bank HDFC Bank Axis Bank
Foreign Banks Operating In IndiaHSBC Bank Citi Bank ABN Amro Bank Standard Chartered Bank
CO-OPERATIVE BANKSThe cooperative bank in India started functioning almost 100 years ago. The cooperative bank is important constituent of the financial system. They are setup to provide easy loan to farmer or other person to setup his business. They are non profitable bankCooperative bank in India finance rural area under: Farming Cattle Milk Hatchery Personal finance Some example Of Cooperative Bank in India are: IDBI Bank
DEVELOPMENT BANKSThese banks are mainly used for developing industry and countries. Some examples are:NABARD SIDBI
WHO CONTROLS OVER BANKS?
RESERVE BANK OF INDIA (RBI)History:Become operational on April 1, 1935 Nationalized in the year 1949
Major objectives:Regulate the issue of Bank note Maintain reserve with a view to securing
monetary stability To operate the credit and currency system of the country to its advantage
FUNCTIONS OF RBITraditional functions Promotional functions Supervisory functions
TRADITIONAL FUNCTIONSMonopoly of currency notes issue Banker of the Govt. (Both central and state) Fight against economic crisis and ensures
stability of Indian economy
Controller of Forex and credit Maintains the external value of domestic
currency
PROMOTIONAL FUNCTIONSExtension of the facilities for the small
scale industries
Innovating the new banking business
transaction
Extension of the facilities for the
provision of the agriculture credit through NABARD
SUPERVISORY FUNCTIONSGranting license to bank Periodical review of the commercial
bank
Control the non banking finance
corporation
HOW IT CONTROLS BANK & ECONOMYTOOLS: CRR (Cash Reserve Ratio): Repo Rate: 4.75% Reverse Repo Rate: 3.25% SLR (Statutory Liquidity Ratio): 25% Bank Rate: 6%
5%
OVERVIEW OF INDIAN BANKING SYSTEM
GLIMPSE OF BANKING SECTORPhase-1: Early phase from 1786 to 1986 of Indian banks
Phase-2: Nationalization of Indian bank and up to 1991 prior to
Indian banking sector reforms
Phase-3: New phase of Indian banking system with the advent of
Indian financial and banking sector reform after 1991
PHASE - 1General bank of India 1786(first bank) Reserve bank of India Slow growth and periodic failure The Banking Company Act 1949 People mostly save in postal deposits
PHASE - 2Nationalization of imperial bank of India and
formation of State Bank Of India (1955)
Nationalization of SBI and subsidiaries (1960) Insurance cover extended to deposits Creation of regional rural banks
PHASE - 3Entry of Foreign Banks Phone banking and net banking Shelter from external
macroeconomic shockSystem become more convenient
and swift
CHALLENGES FACED BY INDIAN BANKSLack of product expertiseTraditionally focused on limited range of products -Primarily for corporate clients Need for acquiring skills in -Retail, Structured finance
Lack of distribution expertiseReliance on branch channel and human intervention Relatively high unit cost of delivery given small transaction sizes
Limited uses of technology
Inefficient capital allocation Competition in marketPost office Insurance Financial institution Foreign banks
WAYS AHEADTechnological advancement Rural banking Improve risk management Developing a flexible model for rapid scale up
at optimal cost
FACTS & FIGURESIndian banking sector has 4th rank in all over the world. SBI has 8500+ ATMs all over the country ICICI bank has 4700+ ATMs all over the country RBI had printed 639948 lakhs crore notes till 6th Nov 2009 Acc. To business magazines survey the no. of ATMs grew
28% yearly.
In spite of it India has 23+ ATMs per million people China
has 55+ ATMs and South Korea has 1600+ ATMs per million peopleTransaction done through ATMs is around 70,000 crore in a
year
SBI has largest no. of branches in foreign also
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