Private banks

Introduction
Private banking in India was practiced since the beginning of banking system in India. But after the nationalization of banks in 1969, no new banks were allowed to be set up in the private sector as it was a feeling that banking should not be allowed to go in private hands. In the last decade of 20th century it was felt that there was increasing need to introduce greater competition & the first Private Bank in India to receive an in principle approval from the Reserve Bank of India was Housing Development Finance Corporation Limited, as part of the RBI's liberalization policy of the Indian Banking Industry. Those Banks which are established as RBIs liberalisation policy are known as New private banks & those working before that are known as Old Private

old Private Sector Banks in India

The banks operating on India even before 1990 are called as old private sector banks & those who got license after 1994 are known as new private sector banks. There are about 25 private sector banks in India which are categorized by the RBI as Old Private Sector Banks and New Private Sector Banks.

The New Private Sector Banks :

Bank of Punjab Ltd. (since merged with Centurian Bank) Centurian Bank of Punjab (since merged with HDFC Bank) Development Credit Bank Ltd. HDFC Bank Ltd. ICICI Bank Ltd. IndusInd Bank Ltd. Kotak Mahindra Bank Ltd Axis Bank (earlier UTI Bank) Yes Bank Ltd.

Regional Rural Bank (RRBs):

Rural banking in India started since the establishment of banking sector in India. Rural Banks during their initial days mainly focused upon the agri sector. Regional rural banks in India were present in almost every corner of the country and extended a help in the growth of the country by way of support to Rural economy. Regional Rural Banks in India (RRBs) were established in October 2, 1975. Regional Rural Banks in India are vigorous part of the rural credit system of the country. The main goal of establishing regional rural banks in India was to provide credit to the rural people.

 RRBs were setup to address the need of regionally oriented rural banks that can address the concerns and requirements of the rural people with local feel & with similar level of professionalism of commercial banks. Major concern of RRBs has been financial viability. A number of committees were formed to find out solution. Studies were conducted to find out the factors that influence RRBs performance. The roles played by the sponsor banks were also analyzed. Performance of RRBS till last decade was very poor with huge accumulated losses, Very High NPA levels, Low recovery rates & such other problems.

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