Download - EVOLUTION OF BANKING IN INDIA.pptx
-
7/27/2019 EVOLUTION OF BANKING IN INDIA.pptx
1/20
EVOLUTION OF
BANKINGSECTOR IN
INDIA
Y. M Aditya Teja -1303023
B. Sai Krishna - 1303039
-
7/27/2019 EVOLUTION OF BANKING IN INDIA.pptx
2/20
BANK
A bank is a financial institution whose primary activity
is to act as a payment agent for customers and to borrow
and lend money.
An institution where one can place and borrow money
and take care of financial affairs;
The first modern bank was founded in Italy in Genoa in1406, its name was (Bank of St. George).
-
7/27/2019 EVOLUTION OF BANKING IN INDIA.pptx
3/20
History
The oldest bank in existence in India is the StateBank of India, which originated in the Bank of
Calcutta in June 1806, which almost immediatelybecame the Bank of Bengal. This was one of thethree presidency banks, the other two being theBank of Bombay and the Bank of Madras.
The three banks merged in 1921 to form the
Imperial Bank of India, which, upon India'sindependence, became the State Bank of India in1955.
-
7/27/2019 EVOLUTION OF BANKING IN INDIA.pptx
4/20
The Central Government entered the banking business with the
nationalization of the Imperial Bank Of India in 1955 The seven
other state banks became the subsidiaries of the new bank whennationalised on 19 July 1960. The next major nationalisation of
banks took place in 1969 when the government of India,
nationalised an additional 14 major banks. The next round of
nationalisation took place in April 1980. The government
nationalised six banks.
The objectives behind nationalisation where:
To break the ownership and control of banks by a few business
families,
To prevent the concentration of wealth and economic power,To mobilize savings from masses from all parts of the country,
To cater to the needs of the priority sectors.....
-
7/27/2019 EVOLUTION OF BANKING IN INDIA.pptx
5/20
In the past 20 years, the RBI has licensed 12 banks inthe private sector in two phases. Ten banks were
licensed on the basis of guidelines issued in January
1993.
The guidelines were revised in January 2001 based on
the experience gained from the functioning of these
banks and fresh applications were invited. Kotak
Mahindra Bank and Yes Bank were the last two entities
to get banking licenses from the RBI in 2003-04.
Now RBI may issue licences for 7-8 new banks in the
Indian banking sector.
-
7/27/2019 EVOLUTION OF BANKING IN INDIA.pptx
6/20
Market Share
-
7/27/2019 EVOLUTION OF BANKING IN INDIA.pptx
7/20
PHASES OF BANKING
Phase-1
Early phase from 1786 to 1969 of Indian Banks
Phase-2
Nationalization of Indian Banks and up to 1991
Phase-3
New phase of Indian Banking System with the advent ofIndian Financial & Banking Sector
-
7/27/2019 EVOLUTION OF BANKING IN INDIA.pptx
8/20
F IRST GENERATION OF BANKI NG
GENERAL BANK OF INDIA 1786(FIRST BANK)
Slow growth and periodic failure
RESERVE BANK OF INDIA 1935
THE BANKING COMPANY ACT 1949
People mostly save in postal deposits.
-
7/27/2019 EVOLUTION OF BANKING IN INDIA.pptx
9/20
SECOND GENERATION OF BANKING
Nationalization 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 credit guarantee corporation
Creation of regional rural banks
-
7/27/2019 EVOLUTION OF BANKING IN INDIA.pptx
10/20
THIRD GENERATION OF BANKING
Entry of Foreign Banks
Phone Banking and Net-Banking
System become more convenient and swift
-
7/27/2019 EVOLUTION OF BANKING IN INDIA.pptx
11/20
TYPES OF BANKS
Commercial Banks
Co-operative Banks
Regional Rural Banks
-
7/27/2019 EVOLUTION OF BANKING IN INDIA.pptx
12/20
Public sector banks
Public Sector Banks (PSBs) are banks where amajority stake (i.e. more than 50%) is held by a
government. The shares of these banks are listed on
stock exchanges. There are a total of 26 PSBs in
India..
Some Public Sector Banks in I ndia:
Central Bank of India
Corporation Bank
Dena BankBank of India
-
7/27/2019 EVOLUTION OF BANKING IN INDIA.pptx
13/20
Commercial Banks Commercial Banks can be divided into Public Sector
Banks and Private Sector Banks.
In India there are 26 Public sector banks.
In Private Sector Banks we have Foreign Banks and
Indian Banks.
-
7/27/2019 EVOLUTION OF BANKING IN INDIA.pptx
14/20
Private sector banks
All those banks where greater parts of stake or equity areheld by the private shareholders and not by governmentare called "private-sector banks".
These are the major players in the banking sector as well
as in expansion of the business activities India. There are two categories of the private-sector banks:
"old" and "new".
The old private-sector banks have been operating since
a long time and may be referred to those banks, which
are in operation from before 1991 and all those banks
that have commenced their business after 1991 are
called as new private-sector banks.
-
7/27/2019 EVOLUTION OF BANKING IN INDIA.pptx
15/20
Private sector banks
These banks are mainly used for developing industries andcountries
Some Examples-
Federal BankHDFC BankHSBCICICIBank Indian Overseas Bank
ING Vysya Bank
-
7/27/2019 EVOLUTION OF BANKING IN INDIA.pptx
16/20
Private Foreign BanksForeign Banks of India come under the the Bankingcompany's act.
Abu Dhabi Commercial Bank
Australia and New Zealand Bank Bank Internasional Indonesia
Bank of America NA
Bank of Bahrain and Kuwait
Bank of Ceylon Bank of Nova Scotia
-
7/27/2019 EVOLUTION OF BANKING IN INDIA.pptx
17/20
Co-operative banks
They are setup to provide easy loans to farmers or otherpersons to set up his business.
They are non profitable banks.
Cooperative banks and RRBS inIndia finance rural areas
under:Farming, Milk, Personal finance
Example of co-operative banks are
1. Andhra Pradesh co-operative bank
-
7/27/2019 EVOLUTION OF BANKING IN INDIA.pptx
18/20
RRBs
Regional Rural Banks are the banking organizations
being operated in different states of India. They have
been created to serve the rural areas with banking
and financial services. However, RRB's may have
branches set up for urban operations and there area ofoperation may include urban areas too.
Examples of RRBS are
1. Chaitanya Godavari grameena bank
2. Deccan grameena bank
-
7/27/2019 EVOLUTION OF BANKING IN INDIA.pptx
19/20
DEVELOPMENT BANKS AND
F INANCIAL INSTITUTIONS
Development banks in India :
IDBI BANK(INDUSTRIAL DEVELOPMENT BANK
OF INDIA)
IFCI (INDUSTRIAL FINANCE COOPERATION
OF INDIA)
-
7/27/2019 EVOLUTION OF BANKING IN INDIA.pptx
20/20