2_copy of evolution of banking
TRANSCRIPT
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Evolut ion o f banking
We either step forward into growth or backinto safety
Maslow
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Origin of Banking
1. Babylonians developed banking systems during2000 B C
2. Jews of Lombardy transacted on bancus orbanque
3.
Credit delivery were prevalent in ancient Greeceand Rome
4. References are found in the old sanskrit texts ofManu about Deposits ,Pledges ,loans etc
5. Bank of Hindostan, set up in 1770, was the first
Indian Bank6. The Carnatic Bank - 1788
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Evolution of Banking In India
Presidency Banks
Bank of Bengal -1806
Bank of Bombay -1840
Bank of Madras -1843
Imperial Bank of India _1920
Reserve Bank Of India _ 1935
State Bank of India _ 1955
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Evolution of Banking in India
Banking regulation act 1949
Social control of Banks 1968
Nationalisation of 14 major banks 19thJuly 1969
Nationalisation of 6 Banks 15thApril 1980
Setting up of Regional Rural banks (RRBs) 1975
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Statutes Governing Banks
Reserve Bank Of India Act 1934
Banking Regulation Act 1949
Banking companies (acquisition and transfer Of Undertaking) Act1970 / 1980
Negotiable Instrument Act 1881
Negotiable Instruments (Amendment and Misc Provisions)Act 2002
Limitation Act 1963
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Statutes Applied To Banking
Indian Contract Act 1872
Indian Partnership Act 1932
Indian Companies Act 1956
Bankers Book Evidence Act 1891
Indian Registration Act 1908
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Private Sector Banks
Post recommendation of the Narasimhan committee onliberalisation, set up in 1991
First Bank, IndusInd Bank, Apr 16, 1994
Global Trust Bank(30 Oct 1994), amalgamated withOriental Bank Of Commerce, UTI Bank (now Axis Bank),ICICI Bank, IDBI Bank
Registered as Public Ltd Companies, initial paid upcapital Rs 200 crores
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Banking Structure
Scheduled Commercial Banks
Public Sector Banks
Private Sector Banks (old/new generation)
Foreign Banks
Co-operative Banks
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Categories of Banks
Branch Banking
Unit Banking
Investment Banking
Universal banking
Merchant Banking
Virtual Banking
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Functions of the Central Bank
Monopoly of note issue
Banker to the government
Bankers Banker and lender of the last resort
Monetary Control and managing public debt
Supervision of Banks and financial Institutions
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Functions of the Central Bank
Management of Foreign Exchange reserves and
exchange control authority
Managing public debt
Discretionary control of refinance and rediscounting
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Monetary control by RBI
Purpose
Controlling inflation
Encouraging growth
Financial stability
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Monetary control by RBI
Cash Reserve Ratio (CRR)
Statutory Reserve Ratio (SLR)
Open Market Operations
Repo Rate
Reverse Repo Rate
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Exercises
State Bank of India : Head office in Mumbai and have14000 branches spread throughout the country
Pune peoples co-operative bank, Pune, the only branch
of the bank has a deposit base of Rs 200 crores
Goldman Sach arranges a foreign currency syndicated
loan of USD 500 million in acquisition of a British steelco, by Tata Steel.
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Exercises
Standard Chartered Bank, New Delhi accepts foreign
currency deposits, arranges sydicated loans and
external commercial borrowings to corporates, provides
working capital finance to industries, sells various
insurance products of Max Newyork, sells the balanced
fund of stanchart mutual fund etc.
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Exercises
Indbank merchant banking services, Chennai manages
the share issue of Tamilnadu cements of Rs 120 crores,
lead managers.
HDFC Bank provides faster transfer of funds of Rs 5
lakhs from Pune to Jodhpur, through RTGS ( real time
gross settlement system ).