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    Banking

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    Anand Venugopal
    The Indian banking industry is governed by the Banking Regulation Act of 1949 and accounts for over half the assets in the country's financial sector. It has undergone three phases - pre-nationalization, nationalization, and liberalization. The Reserve Bank of India acts as the central bank and regulates the financial system. It was established in 1935 and is headquartered in Mumbai. Major scheduled commercial banks in the country include State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, and Punjab National Bank. State Bank of India is the largest bank with over 16,000 branches and a fifth of the country's deposits and loans.

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    Banking

    Uploaded by

    Anand Venugopal
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    The Indian banking industry is governed by the Banking Regulation Act of 1949 and accounts for over half the assets in the country's financial sector. It has undergone three phases - pre-nationalization, nationalization, and liberalization. The Reserve Bank of India acts as the central bank and regulates the financial system. It was established in 1935 and is headquartered in Mumbai. Major scheduled commercial banks in the country include State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, and Punjab National Bank. State Bank of India is the largest bank with over 16,000 branches and a fifth of the country's deposits and loans.

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    The Indian banking industry is governed by the Banking Regulation Act of 1949 and accounts for over half the assets in the country's financial sector. It has undergone three phases - pre-nationalization, nationalization, and liberalization. The Reserve Bank of India acts as the central bank and regulates the financial system. It was established in 1935 and is headquartered in Mumbai. Major scheduled commercial banks in the country include State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, and Punjab National Bank. State Bank of India is the largest bank with over 16,000 branches and a fifth of the country's deposits and loans.

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    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    23 views20 pages

    Banking

    Uploaded by

    Anand Venugopal
    The Indian banking industry is governed by the Banking Regulation Act of 1949 and accounts for over half the assets in the country's financial sector. It has undergone three phases - pre-nationalization, nationalization, and liberalization. The Reserve Bank of India acts as the central bank and regulates the financial system. It was established in 1935 and is headquartered in Mumbai. Major scheduled commercial banks in the country include State Bank of India, HDFC Bank, ICICI Bank, Axis Bank, and Punjab National Bank. State Bank of India is the largest bank with over 16,000 branches and a fifth of the country's deposits and loans.

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    INDIAN BANKING INDUSTRY

    Bank
    Bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrowers and lend money ,thus an constitution for receiving , keeping and lending money. A bank connects customers with capital deficits to customers with capital surpluses. Banks provide finance to all sectors and is regarded as the backbone of the business unit.

    BANKING INDUSTRY IN INDIA


    Accounts for more than half the assets of financial sector. Governed by Banking Regulation Act 1949. Banking System-Still in developing stage. FUNCTIONS Receiving deposits Lending loans Transfer of money Miscellaneous Bancassurance,safe custody of valuables etc..

    BANKING
    The accepting ,for the purpose of lending or investment , of deposits of money from the public ,repayable on demand or otherwise and withdrawal by cheque, draft, order or otherwise.

    Phase 1 (Pre nationalisation era) Phase 2(Nationalisation) Phase 3 (Liberalisation)

    RESERVE BANK OF INDIA


    The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. Its central office is in Mumbai.

    The Reserve Bank of India also has three fully owned subsidiaries: National Housing Bank (NHB), Deposit Insurance and Credit Guarantee Corporation of India (DICGC), Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL). The functions of Reserve Bank are governed by central board of directors. The board is appointed by the Government of India. The directors are nominated / appointed for a period of four years.

    MAIN FUNCTIONS OF RBI


    Monetary authority of the country. Issuer of currency . RBI is the regulator and supervisor of the financial system in the country Custodian of foreign reserves. Acts as banker to governments. Lender of last resort. Controller of credit policy

    Financial Performance of Scheduled Commercial Banks


    The year 2008-09 has been a testing year for the Indian banking sector. Indian banks were largely immune from the global financial crisis, as their exposure to toxic assets was minimal. The balance sheets of Scheduled Commercial banks in India remained robust against the backdrop of global financial crisis. The consolidated balance sheets of SCBs, expanded by 21.2 per cent as at end-March 2010 as compared with 25.0 per cent in the previous year. Overall, the incremental CreditDeposit (C-D) ratio declined sharply reflecting the slowdown in credit growth, as corporates deferred their investments against the backdrop of widespread

    INCOME
    Growth of income of SCBs during 2008-09 decelerated to 25.7 per cent from 34.3 per cent in the previous year, but was higher than the growth rate of 24.4 per cent in 2006-07. The income to assets ratio improved marginally to 8.8 per cent from 8.5 per cent last year. Reflecting the lower lending rates, growth of interest income of SCBs as at end March 2009 decelerated to 26.0 per cent as compared with 33.2 per cent in the previous year

    NET PROFIT
    The growth in net profits of SCBs decelerated to 23.5 per cent during 2008-09 from 36.9 per cent in the previous year. This was mainly on account of sharp increase in the provisions and contingencies

    GROWTH INDICATORS
    The Capital to Risk-weighted Assets Ratio (CRAR) of SCBs, a measure of the capacity of the banking system to absorb unexpected losses, improved further to 13.2 percent at end-March 2009 from 13.0 per cent at end-March 2008

    In terms of the two crucial soundness indicators, viz., capital and asset quality, the Indian banking sector has exhibited resilience amidst testing times

    GLOBAL POSITION
    Indian banking sector is at 6th position among emerging economies. The AEP Banking Sector in Emerging Economies reports that Malaysia has topped among the emerging economies as measured on the basis of financial health indicators. It was followed by Korea and China at second and third place respectively. India fell at sixth position.

    Within the BRIC countries, India ranked at third position, behind China (first) and Russia (second), but ahead of Brazil (fourth) in the overall standing.

    MAJOR PLAYERS
    STATE BANK OF INDIA HDFC BANK AXIS BANK BANK OF INDIA PUNJAB NATIONAL BANK BANK OF BARODA ICICI BANK LTD UNION BANK OF INDIA CITIBANK CANARA BANK FEDERAL BANK

    STATE BANK OF INDIA


    The Imperial Bank of India was nationalised (under the SBI Act of 1955) and re-christened as State Bank of India (SBI) in July 1955. Subsidiaries of SBI are State Bank of Bikaner and Jaipur (SBBJ), State Bank of Hyderabad (SBH), State Bank of Indore (SBIR), State Bank of Mysore (SBM), State Bank of Patiala (SBP), and State Bank of Travancore (SBT). The State Bank Group, with over 16,000 branches, has the largest banking branch network in India. With an asset base of $352 billion and $285 billion in deposits, it is a regional banking behemoth. It has a market share among Indian commercial banks of about 20% in deposits and advances, and SBI accounts for almost one-fifth of the nation's loans

    The State bank of India is the 10th most reputed company in the world according to Forbes State Bank of India is the largest of the Big Four Banks of India, along with ICICI Bank, Punjab National Bank and Canara Bank its main competitors

    OTHER MAJOR BANKS


    Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive an 'in principle' approval from RBI, for setting up a bank in the private sector.

    ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financial institution, in 1994. Four years later, when the company offered ICICI Bank's shares to the public, ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bank offered made an equity offering in the form of ADRs on the New York Stock Exchange (NYSE)

    PRODUCTS
    Banks in India have traditionally offers these banking products Savings Bank

    Current Account
    Term deposit Account Lending products being Cash Credit and Term Loans.

    Remittance products were limited to Issuance of Demand Drafts. RTGS EFT Telegraphic Transfers. Bankers Cheque . Internal Transfer of funds. Investment Advisory Services. Credit cards. Cash Management services. Investment products Tax Advisory services.

    THANK YOU

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