Presented by Dr.S.C.Bihari IBS,HYDERABAD
What is banking? Banking: Cornerstone of Modern Economy
Banking: Rapid Transformation
Banks: Wide range of products and services
Service Delivery: Fast and Efficient
Core Services: Resource Mobilization and Deployment
Banking :an age-old phenomenon
Barter system giving way to money
Safe Deposit becomes necessity
Originated from temples and royal palaces Goldsmiths were the initial bankers
Indian Banking –Early Phase
Three presidency banks were established in Calcutta (1806) in Bombay (1840) and in Madras (1843) In Early 20th century, during Swadeshi movement, a number of Banks set up By Indians like Bank of India, Bank of Baroda and Central Bank of India. In 1921 the three presidency banks were merged and the Imperial Bank of India was created.
Indian Banking- Early Phase Legal frame work Of Banks
Banking Regulation Ac t,1949 In 1955 State Bank of India became the successor to the Imperial Bank of India ,under the State Bank of India Act,1955. In 1959 State Bank of India (Subsidiary Banks) Act was passed to enable SBI to take over State Associated banks as SBI’s subsidiaries RBI ACT,1934
Two historic events of1969 that revolutionalised Indian banking scenario: (1)Social Control on Banking Companies. (2)Nationalization of 14 major Indian banks. Bank nationalization :Banking services to reach the masses Bank nationalization :“The first banking revolution in India”.
The then Prime Minister Mrs. Indira Gandhi addressing Indian national Congress workers soon after nationalisation of banks in 1969
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Slow down in branch expansion, Special thrust on internal control Expansion of bank branches: Moderate@ 2.6% pa. Deposits grew @ 17.7% and credit @14.6% Profit: Major thrust area Profit growth: @ 51.7%pa A Dangerous Development: Write off of Bank Loans
Sickness in Economy and Banking Doctor appointed to cure both Three prominent pills: LPG Narasimham Committee Report: ‘second banking revolution’ through Setting up of new Private Sector Banks Introduction of prudential accounting norms. Competition and Professionalisation.
Narasimham Committee II, 1998 :for reviewing the direction of reforms
Major areas covered: Strengthening capital adequacy, Asset quality, Prudential norms & disclosure requirements; Systems and methods in Banks and Structural issues.
Progress of banking in India
Branch expansion: Increased from 8260 in 1969 to about 1lac in 2013,besides 1lac plus ATMs Population served per branch has come down from 64000 to 12000 Deposit Mobilisation: 1951-1971 (20 years)- 700% or 7 times 1971-1991 (20 years)- 3260% or 32.6 times 1991- 2011 (20 years)- 1500% or 15 times Expansion of bank credit: Growing at an average of 20% p.a. due to rapid growth in industrial and agricultural output ◦
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STRUCTURE OF INDIAN BANKING
RESERVE BANK OF INDIA
Scheduled Banks( Included in the
Non-Scheduled Banks
Secon d Schedule of the RBI ACT 1934)
Commercial Banks State Co-operative Banks
Regional Rural Banks
District Cooperative Banks
PCS
Types of Banks Regional Rural Banks
Central Bank RBI
Co-operative Banks
Public Sector Banks
Foreign Banks Old Private Sector
New Private Sector Banks
Classification of Pubic Sector Banks PUBLIC SECTOR BANKS
STATE BANK OF INDIA SBI
SBI ASSOCIATE BANKS
NATIONALISED BANKS
STATE BANK OF INDIA AND ITS SUBSIDIARIES
1. STATE BANK OF BIKANER & JAIPUR 2. STATE BANK OF HYDERABAD 3. STATE BANK OF MYSORE 4. STATE BANK OF PATIALA 5. STATE BANK OF TRAVANCORE STATE BANK OF SAURASHTRA, STATE BANK OF INDORE SINCE MERGED WITH STATE BANK OF INDIA
NATIONALIZED BANKS 1.
ALLAHABAD BANK
10. IDBI BANK
2.
ANDHRA BANK
11. INDIAN BANK
3.
BANK OF BARODA
12. INDIAN OVERSEAS BANK
4.
BANK OF INDIA
13. ORIENTAL BANK OF COMMERCE
5.
BANK OF MAHARASHTRA
14. PUNJAB NATIONAL BANK
6.
CANARA BANK
16. UNION BANK OF INDIA
7.
CENTRAL BANK
17. UNITED BANK OF INDIA
OF INDIA
18. UCO BANK
15. PUNJAB & SIND BANK
8. CORPORATION BANK
19. SYNDICATE BANK
9. DENA BANK
20. VIJAYA BANK 21.BHARATIYA MAHILA BANK
PRIVATE SECTOR BANKS
Old Generation Private banks
New Generation Private banks
Foreign banks in India
Scheduled Co-operative banks
Non-Scheduled banks
OLD PRIVATE BANKS
(1)City Union Bank Ltd (2)Development Credit Bank Ltd (3)ING Vysya Bank Ltd (4)The Karnataka Bank Ltd (5)Tamil Nadu Mercantile Bank Ltd (6)The Catholic Syrian Bank Ltd (7)The Dhanalaxmi Bank Ltd (8)The Federal Bank Ltd (9)The Jammu Kashmir Bank Ltd (10)The Laxmi Vilas Bank Ltd (11)The South Indian Bank Ltd.
NEW GENERATION PRIVATE BANKS
(1) Axis Bank Ltd (2) HDFC Bank Ltd (3) ICICI Bank Ltd (4) Induslnd Bank Ltd (5) Kotak Mahindra Bank Ltd (6) Yes Bank Ltd.
MAJOR Foreign Banks in India BNP Paribas Bank Citi Bank Deutsche Bank HSBC JPMorgan Chase Bank Standard Chartered Bank Scotia Bank
Central Co-operative banks
State Co-operative banks
Primary Agricultural Credit societies
Land Development banks
Urban Co-operative banks
State Land Development banks
Industrial Finance Corporation of India (IFCI) Industrial Credit & Investment Corporation of India (ICICI) Small Industries Development Bank of India (SIDBI) National Bank for Agriculture & Rural Development (NABARD) Export-Import Bank of India National Housing Bank
TRANSACTION SERVICES INTERMEDIATION PAYMENT AND SETTLEMENT SYSTEM REAL-TIME GROSS SETTLEMENT Other Financial Services CAPITAL MARKET PRODUCTS Advisory services Transaction support Custodial services
Technological revolution Disintermediation and securitization Service proliferation Rising competition Deregulation Rising funding costs and shrinking spreads Consolidation and geographic expansion Globalization of banking
Thanks for your attention
Dr. S. C. Bihari
Tell:08417-236660 to 65(Extn: 6214)
Mail:
[email protected]
