Presented

by
Dr.S.C.Bihari
Dr.S.C.Bihari
IBS,HYDERABAD IBS,HYDERABAD
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
What is banking?
What is banking?
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 20
th
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
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 SBIs subsidiaries
Legal frame work
Of Banks
RBI ACT,1934
Banking Regulation
Act,1949
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
6/13/2014 7
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
RESERVE BANK OF INDIA
Scheduled Banks( Included in the
Second Schedule of the RBI ACT 1934)
Non-Scheduled Banks
Commercial Banks State Co-operative Banks
District Cooperative Banks
STRUCTURE OF INDIAN BANKING
PCS
Regional Rural
Banks
Types of Banks
Central
Bank
RBI
Public Sector
Banks
New Private
Sector
Banks
Old
Private
Sector
Foreign Banks
Co-operative
Banks
Regional
Rural
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
2. ANDHRA BANK
3. BANK OF BARODA
4. BANK OF INDIA
5. BANK OF
MAHARASHTRA
6. CANARA BANK
7. CENTRAL BANK
OF INDIA
8. CORPORATION BANK
9. DENA BANK
10. IDBI BANK
11. INDIAN BANK
12. INDIAN OVERSEAS BANK
13. ORIENTAL BANK OF COMMERCE
14. PUNJAB NATIONAL BANK
15. PUNJAB & SIND BANK
16. UNION BANK OF INDIA
17. UNITED BANK OF INDIA
18. UCO BANK
19. SYNDICATE 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) (1)City Union Bank Ltd City Union Bank Ltd
(2) (2)Development Credit Bank Ltd Development Credit Bank Ltd
(3) (3)ING Vysya Bank Ltd ING Vysya Bank Ltd
(4) (4)The Karnataka Bank Ltd The Karnataka Bank Ltd
(5) (5)Tamil Nadu Mercantile Bank Ltd Tamil Nadu Mercantile Bank Ltd
(6) (6)The Catholic Syrian Bank Ltd The Catholic Syrian Bank Ltd
(7) (7)The Dhanalaxmi Bank Ltd The Dhanalaxmi Bank Ltd
(8) (8)The Federal Bank Ltd The Federal Bank Ltd
(9) (9)The Jammu Kashmir Bank Ltd The Jammu Kashmir Bank Ltd
(10) (10)The Laxmi Vilas Bank Ltd The Laxmi Vilas Bank Ltd
(11) (11)The South Indian Bank Ltd. The South Indian Bank Ltd.
NEW GENERATION PRIVATE BANKS
(1)
(1)
Axis Bank Ltd
Axis Bank Ltd
(2) HDFC Bank Ltd
(2) HDFC Bank Ltd
(3) ICICI Bank Ltd
(3) ICICI Bank Ltd
(4) Induslnd Bank Ltd
(4) Induslnd Bank Ltd
(5) Kotak Mahindra Bank Ltd
(5) Kotak Mahindra Bank Ltd
(6) Yes 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
Dr. S. C. Bihari
Tell: Tell:08417 08417- - 236660 to 65(Extn: 6214) 236660 to 65(Extn: 6214)
Mail:scbihari@gmail.com
Thanks for your attention