Vinita Projct (2)

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    Banking in a traditional sense is the business of accepting deposits of money

    from public for the purpose of lending and investments. These deposits can have

    a distinct feature of being withdrawal by cheques, which no other financial

    institution can offer.

    In addition, banks also offer various other financial services, which includes:-

    Issuing emand raft and Travelers !heques

    !redit !ard

    !ollection of cheques, Bills of "#change

    $afe eposit %ockers

    Issuing %etters of !redit and %etters of &uarantee

    $ale and 'urchases of (oreign "#change

    !ustodial $ervices

    Investment and Insurance service

    The business of banking is highly regulated since banks deal with money offered

    to them by the public and ensuring the safety of this public money is one of the

    prime responsibilities of any bank. That is why banks are e#pected to be prudent

    in their lending and investment activities. "very bank has !ompliance

    department, which is responsible to ensure that all the services offered by the

    banks and the processes followed are in compliance with the local regulation and

    the bank)s corporate policies:

    Banking *egulation +ct,

    (oreign "#change /anagement +ct,

    Indian !ontract +ct, 012

    3egotiable Instrument +ct, 00

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    Banks lend money either for productive purposes to individuals, firm corporate

    etc. or for buying house property, cars and other durable and for investment

    purposes to individuals and others.

    4owever banks do not finance any speculative activity. %ending is risk taking5having prudent norms for lending should cover the risk. The depositors of banks

    are also assured of their money by deploying some percentage of deposits in

    statutory reserve like $%* and !**.

    BANKING INDUSTRY IN INDIA

    Banking in India has its origin as early as the 6edic period. It is believed that the

    transition from money lending to banking must have occurred even before /anu.

    The great 4indu 7urist, who devoted a section of his work to deposits and

    advances and lay down rules relating to rate of interest. uring the /ogul period,

    the indigenous banker played a very important role in lending money and

    financing foreign trade and commerce. uring the days of the "ast India

    !ompany it was the turn of the agency houses to carry on the banking business.

    The &eneral Bank of India was the first 8oint $tock Bank to be established in the

    year 109. The others, which followed, were the Bank of 4industan and Bengal

    Bank. The bank of 4industan is reported to have continued till 9 while the

    other two failed in the meantime. In Bank of Bengal in 0 , the Bank of Bombay

    in 0 and the bank of madras in 0 ;. These three banks also known aspresidency Bank were independent units and functioned well. These three banks

    were amalgam

    +cted on 21 th 7anuary 2 .

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    India $I BIC, $!I!I %td., 3ational Bank for +griculture and *ural

    evelopment 3+B+* , "#port Import Bank of India.

    NATIONAL HOUSING BANK

    The Indian banking can be broadly categori?ed into 3ationali?ed, 'rivate Banks

    @ $peciali?ed Banking Institution. The *BI +ct as a centrali?ed body monitoring

    and discrepancies and short coming in the system. $ince the 3ationali?ation of

    Banks in 9 , the public sector banks have accrued a place of prominence and

    have since then seen tremendous progress. !onservative banking practices

    allowed India Banks to be insulated partially form the +sia currency crises, Indiabanks are now quoting all higher valuation when compared to Bank to other

    +sian countries that have ma8or problems linked to huge 3'+)s and payment

    defaults. !o-operative banks are nimble footed in approach and armed with

    efficient branch network focus primarily on the high revenue niche retail

    segments. The India banking was finally worked up to the competitive dynamic of

    the new India market and is addressing the relevant issues to take on the

    multifarious challenges of globali?ation.

    'rivate Banks has been fast on the uptake and is reorienting their strategies

    using the interest as a medium. The Interest has emerged as the new

    challenging frontier of marketing. The large does of liberali?ation have largely

    brought this transformation and economic reforms that allowed banks to e#plore

    new business opportunities rather generating revenues from conventional

    streams i.e. borrowing and lending.

    The banking in India is highly fragmented with banking unit contributing to almost== of deposits and 9 D of advances. Indian nationali?ed banks continue to be

    the ma8or lender in the economy duet to their sheer si?e and penetrative

    networks which assures them high deposit mobili?ation. The India banking can

    be broadly categori?ed into nationali?ed, private banks and speciali?ed banking

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    institutions. The *BI acts as a centrali?ed body monitoring any discrepancies and

    shortcoming in the system. It is foremost monitoring body in the Indian financial

    sector. The nationali?ed banks continue that out of commercial banks operating

    in India, banks are in the public sector and = are in the private sector. The private

    sector bank grids also include foreign banks that have started their operation

    here.

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    CHAPTER 2

    INTRODUCTION TO

    ORGANISATION

    Introdu t!on o" A#!$ B%n&

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    !ommercial banking services which includes merchant banking, direct finance

    infrastructure finance, venture capital fund, advisory, trusteeship, fore#, treasury

    and other related financial services. +s on ; -/ar-2 , the &roup has 021

    branches, e#tension counters and ;,= = automated teller machines +T/sC.

    +#is Bank was the first of the new private banks to have begun operations in

    , after the &overnment of India allowed new private banks to be established.

    The Bank was promoted 8ointly by the +dministrator of the specified undertaking

    of the Anit Trust of India ATI - IC, %ife Insurance !orporation of India %I!C and

    &eneral Insurance !orporation of India &I!C and other four '$A insurance

    companies, i.e. 3ational Insurance !ompany %td., The 3ew India +ssurance

    !ompany %td., The >riental Insurance !ompany %td. and Anited India Insurance

    !ompany %td. The Bank today is capitali?ed to the e#tent of *s. ;= .19 cores

    with the public holding other than promotersC at =1.1 D.The BankEs *egistered

    >ffice is at +hmadabad and its !entral >ffice is located at /umbai. The Bank

    has a very wide network of more than 0=; branches and "#tension !ounters as

    on ; th 7une 2 C. The Bank has a network of over ;12; +T/s as on ; th

    7une 2 C providing 2 hrs a day banking convenience to its customers. This is

    one of the largest +T/ networks in the country. The Bank has strengths in both

    retail and corporate banking and is committed to adopting the best industrypractices internationally in order to achieve e#cellence.

    H!$tor' o" A#!$ (%n&-

    1))* + The Bank was incorporated on ;rd ecember and !ertificate of business

    on th ecember. The Bank transacts banking business of all description. ATIBank %td. was promoted by Anit Trust of India, %ife Insurance !orporation of

    India, &eneral Insurance !orporation of India and its four subsidiaries. The bank

    was the first private sector bank to get a license under the new guidelines issued

    by the *BI.

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    1)), + The Bank obtained license to act as epository 'articipant with 3$ %and applied for registration with $"BI to act as FTrustee to ebenture 4oldersE.

    *upees crores was contributed by ATI, the rest from %I! *s 1.= crores, &I!and its four subsidiaries *s .= crores each.

    1)) +The Bank has 20 branches in urban and semi urban areas as on ; st 7uly. +ll the branches are fully computeri?ed and networked through 6$+T. +T/

    services are available in 21 branches. The Bank came out with a public issue of

    ,= , , 3o. of equity shares of *s each at a premium of *s per share

    aggregating to *s ; .= crores and >ffer for sale of 2, , , 3o. of equity

    shares for cash at a price of *s 2 per share. >ut of the public issue 2, 2 ,

    shares were reserved for allotment on preferential basis to employees of ATI

    Bank. Balance of ;, 1, 0 , shares were offered to the public. The company

    offers +T/ cards, using which account-holders can withdraw money from any of

    the bankEs +T/s across the country which is inter-connected by 6$+T. ATI Bank

    has launched a new retail product with operational fle#ibility for its customers.

    ATI Bank will sign a co-brand agreement with the market, leader, !itibank 3+ for

    entering into the highly promising credit card business.

    2... + The Bank has announced the launch of Tele- epository $ervices for Its

    depository clients. ATI Bank has launch of FconnectE, its Internet banking 'roduct.

    ATI Bank has signed a memorandum of understanding with equitymaster.com for

    e-broking activities of the site. Infinity.com financial $ecurities %td., an e-broking

    outfit is Typing up