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Transcript of Banking industry
- 1. What Is Bank?A bank is an institution which acceptsdeposits, withdrawals by cheque andmakes loans and advances.A banker is one who in the ordinarycourse of his business, receives moneywhich he pays by honouring cheques ofpersons whom or on whose account hereceives it.
2. Types of Banks Foreign Commercial BanksCommercial Banks Indian Commercial Banks IndustrialState LevelBanks National Level Cooperative BanksBanks AgriculturalBanks Land Development Banks RegionalBanksCentral bank Other EXIM Banks Apex BankingInstitutionNational Banks National Housing Banks 3. Lists of Banks in IndiaNationalized Banks Reserve Bank of India State Bank of India State Bank of Patiala Allahabad Bank IDBIPunjab and Sind Bank Punjab National Bank Union Bank Of India Canara Bank Private Banks Axis Bank HDFC Bank ICICI Bank Kotak Mahindra Bank Induslnd Bank ING Vyasya Bank 4. Functions Of Banking Industry E-SecondarySocialPrimary FunctionBanking/Electronic function Function banking Fixed Deposit A/C Purchase and Sale Electronic Fund Of securities EmploymentTransferCurrent Deposit A/C Automatic TellerLocker FacilitiesMachine(ATMs) Overdraft Capital Formation Debit Cards Recurring Deposit Collection AndA/C Payment of Various ItemsInducement ToInnovation Credit cards Demand Loan Purchase and SaleOf ForeignTele-BankingDiscounting Of BillExchangeHelpful in pushing Of Exchangeup the demand 5. DEBIT CARDAutomatic TellerMachine(aTMs)CREDIT CARD 6. Retail banking Savings account Money market account Certificate of deposit (CD) Individual retirement account (IRA) Credit card Debit card Home loan Mutual fund Personal loan Time depositsBusiness (or commercial/investment) banking Business loan Capital raising (Equity / Debt / Hybrids) Project finance Revolving credit Term loan 7. ULIP- UNIT LINKED INSURANCE PLANSUnit linked insurance plan (ULIP) is lifeinsurance solution that provides for thebenefits of risk protection and flexibility ininvestment. The investment is denoted as unitsand is represented by the value that it hasattained called as Net Asset Value (NAV). Thepolicy value at any time varies according to thevalue of the underlying assets at the time. 8. Mutual FundAn investment vehicle that is made up of a poolof funds collected from many investors for thepurpose of investing in securities such as stocks,bonds, money market instruments and similarassets. Mutual funds are operated by moneymanagers, who invest the funds capital andattempt to produce capital gains and income forthe funds investors. A mutual funds portfolio isstructured and maintained to match theinvestment objectives stated in its prospectus. 9. Online banking (or Internet banking or E-banking) allows customers of ainstitution to conduct financial transactions on a secure website operateinstitutionTo access a financial institutions online banking facility, a customer havipersonal Internet access must register with the institution for the serviceset up some password (under various names) for customer verification.institutions now routinely allocate customer numbers (also under variounames), whether or not customers intend to access their online bankingCustomer numbers are normally not the same as account numbers. Thecustomer will link to the facility those accounts which the customer contwhich may be cheque, savings, credit card and other accounts. To accessbanking, the customer would go to their financial institutions website, athe online banking facility using the customer number and password. Sofinancial institutions have set up additional security steps for access, butno consistency to the approach adopted. 10. Mobile BankingMobile banking (also known asM-Banking, Mbanking, SMSBanking) is a term used forperforming balance checks, accounttransactions, payments, creditapplications and other bankingtransactions through a mobiledevice such as a mobile phone orPersonal Digital Assistant(PDA). 11. Growth of banking sectors inIndiaThe banking system in India is the most extensive.The total asset value of the entire banking sector inIndia is nearly US$ 270 billion. The total deposits isnearly US$ 220 billion. Banking sector in India hasbeen transformed completely. Presently the latestinclusions such as Internet banking and Corebanking have made banking operations more userfriendly andto researches carried out by the According easy. Reserve Bank of India (RBI), on an all India basis, 59 per cent of the adult population in the country has bank accounts and 41 per cent dont. In rural areas, the coverage of banks is 39 per cent, against 60 per cent in urban areas. There is only one bank for a population of13000. 12. Problems Related to Banking industry Competitions amongst Nationalized and Non-Nationalized bank. Problem relating to surplus fund and deficit fund. Recovery of Bad Debts In Long term loans. Implementing the policies Layed down by RBI. Costumer Awareness Communication Gap Between The Costumer And BankingIndustry. Insecurity in the minds of people related to the Net BankingFacility. Private banks have more advanced computer technology ascompared to Nationalized Bank 13. ConclusionBanks provide security and convenience for managing your moneyand sometimes allow you to make money by earning interest.Writing and depositing checks are perhaps the most fundamentalways to move money in and out of a checking account, butadvancements in technology have added ATM and debit cardtransactions. Debit cards provide easy access to the cash in youraccount. To protect your money from electronic theft, identitytheft, and other forms of fraud, its important to implement basicprecautions such as shredding account statements, havingcomplex passwords and only doing online banking through secureinternet connections.