Banking Sector Overview

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Submitted To :- Submitted By :- MR. VIKAS BHARGAW SUSHIL KUMAR

H.O.D. (M.B.A. DEPT.) M.B.A. (I ST SEM)

ROLL NO :-08MB2034


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ACKNOWLEDGEMENT

Gratitude is the hardest of emotions to express as onedoes not find adequate words to convey what one feels.I feel highly delighted the way my project has been

completed. It is a matter of immense pleasure and honors forme that I got an explicit opportunity to work for such an

organization, which tends to nurture its human assets in the

most orderly and sophisticated manner providing them withutmost care and affection.

Any successful accomplishment requires the combinedefforts of many people and my task was not an exception. I

am highly Indebted to my guide Mr. vikas

bhargaw,H.O.D(MBA DEPT) IN OITM guidance andpatience I would not had been able to accomplish the task.Last but not the least my utmost thanks to the GOD, who

gave me the strength and courage to go ahead thereby helpingme to fulfill my task successfully.


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PREFACEWith the changing times and changing economic conditions, The Indian

Banking industry has been changed in its activity in the past decade. Now we canfind a very large network of the banking. No nook and corner is left in India, where

people are not know about the banking facilities.With the changing scenario, the banking system has seen many positive as well

as negative changes. The problems that are being faced by the banking industryare to be solved as early as possible in order to make its survival for sure.When an in-depth study is made into the problems, the following points come

in front of us:

The basic reason in the large image of paper work based.Non performing assets .

Possibility of forgery of various documents leading to the bad deliveries, legaldisputes etc.

Loss of documents in transit.Unwarranted delay in transfer of money, it takes long time for customer to get

the payment.All these reasons have contributed to the fact that the big customers are

hesitant to enter into deals involving large sums of money.So, as an improvement over the existing system, the electronic

systems were introduced so as to make the functioning of the banks moreefficient and thus, gaining the confidence of the customers.

Sushil kumar


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CONTENTS:-

1.Preface.2.Acknowledgements.3.Introducations

(a) An overview(b) Early History

4.Structure of banking sector in India.5.Banking industry

(a) Private bank

(b)Public bank(c)Foreign bank6.Overview7.Bibliograpy.8.Thankyou.


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An Overview:Banking in India originated in the first decade of18th century with TheGeneral Bank of India coming into existence in 1786. This was followed byBank of Hindustan. Both these banks are now defunct. The oldest bank in

existence in India is the State Bank of India being established as "TheBank of Bengal" in Calcutta in June 1806. A couple of decades later,

foreign banks like Credit Lyonnais started their Calcutta operations in the1850s. At that point of time, Calcutta was the most active trading port,mainly due to the trade of the British Empire, and due to which banking

activity took roots there and prospered. The first fully Indian owned bankwas theAllahabad Bank, which was established in 1865.

By the 1900s, the market expanded with the establishment of banks suchas Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in

Mumbai - both of which were founded under private ownership. TheReserve Bank of India formally took on the responsibility of regulating the

Indian banking sector from 1935. After India's independence in 1947, theReserve Bank was nationalized and given broader powers

Definition of BankA Bank is who, in the ordinary course of his business, receives

money which he pays by honoring Cheques of persons fromwhom or on whose account he receives it.


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STRUCTURE OF THE ORGANISEDBANKING SECTORIN INDIA(NO. OF ARE IN BRACKETS)


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RESERVEBANK OF INDIA (RBI)

It was established on April 1, 1935.It was nationalized in 1949.

It is central bank of the country.Originally, it was the bank of the shareholders.Its headquarter is at Mumbai.It has 21 branches in India.

FUNCTIONS& POWERSOFRBI

It is the bank issue and has the sole right to paper notes.It acts as Banker to the Government .It receives all moneyon behalf of the govt.It is a bankers bank. it act as the banker to the other

bank. all banks have to submitWeekly returns of their business to it.It regulates the flow of credit. It regulates the flow ofcredit in specific lines.It maintains the external value of the rupee.Under supervisory power of the rbi every bank has to get alicense from it to do banking business.


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STATE BANK OF INDIA

It was established in 1955.

It was nationalized in 1956.

It is among the 100 topmost banks of the world.

It is the largest commercial bank of India.

It is called the Imperial Bank of India.

It has maximum branches(11000) all over the world.

It is the Indian bank to open a counter in Kabul in2004.


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OTHER MAJOR BANKS OF INDIA

In 1969 the govt. of India nationalized 14 banks. These were :1. Punjab National Bank2.Indian Overseas Bank3.Bank of Maharashtra4.Union Bank of India

5.United Commercial Bank6.United Bank of India7.Bank of Baroda8.Canara Bank9.Central Bank10.Bank of India

11.Allahabad Bank12.Dena Bank13.Syndicate Bank14.Indian Bank


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SIX MORE NATIONALISED BANKS OF INDIA

In 1980 the Govt. of India nationalized 6 more banks. Thesewere:Oriental Bank of Commerce

Punjab and Sind BankNew Bank of IndiaAndhra BankCorporation Bank

Vijay BankImportant Note: The New Bank of India was running at a loss.Hence, it was merged with the Punjab National BankIn 1993. Therefore, the number of nationalized banks today is19.


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COINS ARE MINTED AT

MumbaiKolkataNoidaHyderabadCURRENCY NOTES ARE PRINTED ATNasik. It is called the Currency Notes PressIt prints bank notes of Rs.10,Rs.50 and Rs.100.BANK NOTES PRESSIt is at Dewas which is in Madhya PradeshIt prints bank notes of Rs.20,Rs.500 and Rs. 1000.


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Banking in IndiaCentral

Bank Reserve Bank of India

Nationalized

Banks

State Bank of India Allahabad Bank Andhra Bank Bank of

Baroda Bank of India Bank of Maharashtra Canara

Bank Central Bank of India Corporation Bank Dena

Bank Indian Bank Indian Overseas Bank Oriental Bank of

Commerce Punjab & Sind Bank Punjab National Bank

Syndicate Bank Union Bank of India United Bank of

India UCO Bank Vijaya Bank

Private

Banks

Axis Bank Bank of Rajasthan Bharat Overseas Bank Catholic

Syrian Bank Centurion Bank of Punjab City Union Bank

Development Credit Bank Dhanalakshmi Bank Federal

Bank Ganesh Bank of Kurundwad HDFC Bank ICICI

Bank IDBI Bank IndusInd Bank ING Vysya Bank

Jammu & Kashmir Bank Karnataka Bank Limited Karur

Vysya Bank Kotak Mahindra Bank Lakshmi Vilas Bank

Lord Krishna Bank Nainital Bank Ratnakar Bank Sangli

Bank SBI Commercial and International Bank South Indian

Bank Tamilnad Mercantile Bank Ltd. United Western

Bank YES Bank


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Banking

industry

Private

banks

Public

banksForeign

banks

In India the banking sector is segregated as public or private sector

banks, cooperative banks and regional rural banks. Foreign banks have

been given a different head followed by upcoming foreign banks in this

section.

PRIVATE BANKSPrivate banking in India was practiced since the beginning of bankingsystem in India. The first private bank in India to be set up in Private

Sector Banks in India was IndusInd Bank. IN 1996-2001, the growth rate

of private sector banks was significantly higher than that of the banking

industry.


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LISTOFSOMEPRIVATEBANKSININDIA

Bank of Punjab HDFC BANK Catholic Syrian Bank City Union Bank Dhanalakshmi Bank Development Credit Bank Federal Bank ICICI Bank Bank of Rajasthan IDBI Bank IndusInd Bank Jammu & Kashmir Bank


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Advantages of a banks

Financing of trade and industryEncouragement to capital formationTransfer of moneyElasticity in the monetary system

Agency functionArrangement of foreign exchange


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BIBLIOGRAPY

Website:-wikipedia.org

Books:-Indian financial system(Jain T.R.)

Newspapers:-The times of India.


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Banking Sector Overview

Documents

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