3. A Glimpse of Banking sector
Phase-1
Early phase from 1786 to 1969 of Indian Banks
Phase-2
Nationalization of Indian Banks and up to 1991 prior
to Indian banking sector Reforms
Phase-3
New phase of Indian Banking System with the advent
of Indian Financial & Banking Sector Reforms after
1991
4. Phase-1
GENERAL BANK OF INDIA 1786(FIRST BANK)
RESERVE BANK OF INDIA 1935
Slow growth and periodic failure
THE BANKING COMPANYACT 1949
People mostly save in postal deposits.
5. Phase-2
Nationalization of imperial bank of India and
formation of sate 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
6. Phase-3
Entry of Foreign Banks
Phone Banking and Net-Banking
Shelter from external macroeconomic shock
System become more convenient and swift
7. WHAT IS BANK?
A banker or 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; A branch office of such an institution.
The first modern bank was founded in Italy in Genoa in
1406, its name was (Bank of St. George).
8. FUNCTIONS OF BANKSAccepting Deposits from public/others (Deposits).
Lending money to public (Loans).
Transferring money from one place to another (Remittances).
Acting as trustees.
Keeping valuables in safe custody.
Government business.
10. Public sector Banks
Some Public Sector Banks in India:
Central Bank of India
Corporation Bank
Dena Bank
Bank of India
Indian Overseas Bank
Oriental Bank of Commerce
Punjab & Sind Bank
11. Private sectors Banks
New generation private banks
ICICI Bank
• IDBI Bank
• Axis bank
Foreign banks operating in India
• HSBC BANK
• CITI BANK
• ABN-AMRO BANK
• STANDARD CHARTED BANK
12. CO-OPERATIVE BANKSThe Co operative banks in India started functioning almost 100
years ago.
The Cooperative bank is an important constituent of the Indian
Financial System.They are setup to provide easy loans to farmers
or other persons to set up his buisness.
They are non profitable banks.
Cooperative banks in India finance rural areas under:
Farming
Milk
Personal finance
Some example of co-operative banks in India-
IDBI BANK(INDUSTRIAL DEVELOPMENT BANK OF INDIA)
IFCI BANK(INDUSTRIAL FINANCE COOPERATION OF
INDIA)
APEX BANK
13. Institutions
These banks are mainly used for devoloping industries and
countries
Some Examples-
Federal Bank
HDFC Bank
HSBC
ICICI
Bank Indian Overseas Bank
ING Vysya Bank
15. The Reserve Bank of India
History:-
Become operational on April 1,1935
Nationalized in the Year 1949.
Major objectives:-
Regulate the issue of banknote.
Maintain reserves with a view to securing monetary stability.
To operate the credit and currency system of the country to its
advantage.
16. Functions of RBI
The fuctions are classified into three heads:-
Traditional functions
Promotional functions
Supervisory functions
17. Traditional functions
Monopoly of currency notes issue
Banker to the Government (both the central and state)
Fight against economic crisis and ensures stability of
Indian economy.
Controller of ForEx and credit
Maintaining the external value of domestic currency
18. Promotional functions
Extension of the facilities for the small scale industries
Innovating the new banking business transactions.
Extension of the facilities for the provision of the
agricultural credit through NABARD