1.1 Purpose of the Study:
This dissertation report focuses on the comparative analysis of the four leading private sector banks in India, namely ICICI Bank, HDFC Bank, Axis Bank, and Kotak Mahindra Bank. The ratios of these banks are analyzed over a period of five years from the year 2010-11 to 2014-15 to observe the trend in their financial performance.
Banks play an important role in the development of trade, commerce and they play a vital role in the economic development of the nation’s economy. We can’t think of modern society without banking system.
The economic development of a nation’s economy depends on its banks. Additionally, they play an essential role in the development of trade and commerce. The modern society cannot be imagined
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Next came Bank of Hindustan and Bengal Bank. Independent units of Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) were set up by the East India Company. The Imperial Bank of India was set up which had mostly European shareholders and began as bank of private shareholders as the three banks were amalgamated in 1920. Punjab National Bank Ltd. Had headquarters at Lahore and was set up in 1894 and for the first time solely by Indians, Allahabad Bank was established in 1865. There was setting up of banks between 1906 and 1913 - Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore. Reserve Bank of India came in 1935. During the first phase the development was moderate and banks additionally experienced occasional disappointments between 1913 and 1948. Between 1913 and 1948, the banks faced occasional disappointments and the first phase of development was a moderate experience for them. There were approximately 1100 banks, mostly small. The Central Banking Authority in India was named to be Reserve Bank of India, which was then vested with broad super powers for supervision of banking. During those days public has lesser confidence in the banks. As an aftermath deposit mobilization was slow. Side by side of it the savings bank facility provided by the Postal department was nearly more secure. In addition, funds were to a great extent given to …show more content…
Kotak Mahindra Group is one of the leading financial services conglomerates and was set up in the year 1985 by Mr. Uday Kotak. The Reserve Bank of India (RBI) gave a banking licence to the Group’s flagship company- Kotak Mahindra Finance Ltd. (KMFL) in February 2003. Kotak Mahindra Finance Ltd. (KMFL) became the first non-banking finance company in India to be changed over into a bank- Kotak Mahindra Bank Limited (KMBL). As on 31 March 2015, the bank had a total income of Rs. 11,748.32 crores and net profit of Rs. 1,865.98 crores. The bank has more than 641 branches and more than 1,159 ATMs in 363 areas of
Flaherty, Edward. 1997. A Brief History of Banking in the United States <http://odur.let.rug.nl/~usa/E/usbank/bank03.htm> (accessed 12-12-99)
But most people within the economy do not know enough about the complexities of the banking system to voice their opinion in opposition to the bankers, politicians, and regulators. This is a central concern of Admati and Hellwig and one of their main motivating factors for writing The Banker’s New Clothes. Admati and Hellwig aimed to “demystify” the banking system in order to raise awareness to weaknesses in banking policies in hopes of triggering necessary reforms to banking principles that only benefit the bankers and politicians. They state, “Expanding the policy discussion beyond the circle of bankers and banking specialists is very important, because more action is urgently needed and yet has not been taken. The banking system is still much too fragile and dangerous. This system works for many bankers, but exposes most of us to unnecessary and costly risk, and it distorts the economy in significant ways (pg. 4).” Admati and Hellwig look to level the playing field for the general public by explaining the banking system and it’s flaws in clear terms that most people can understand. By doing this Admati and Hellwig hope to reduce the recurrent economic booms and busts that have such harsh consequences for people in compromised economic situations; which are
【b】Frederics S, Mishikin and Apostolos Serletis. "Chapter 13: Banking and the Management of Financial Institutions " The economics of money, banking and financial market. 5th Canadian. Pearson, 306. Print.
This chapter covers the overview of the country in a short history, banking system, commercial banks and interest rate theory. The chapter provides also the theoretical review of interest rate and profitability.
Lower the ratio, better it is. Higher the ratio, higher the risk. The ideal ratio is 1:1. In the year 2012, the HDFC bank’s ratio is 0.01. This means the company relies less on the outsiders and loans. This is a good indicator, which means the company was doing well in the last year. But in the year 2013, the ratio increased drastically. The ratio in the year 2013 was 9.9, which means that the bank borrowed a lot of money from the outsiders.
The “banking” concept affects two social classes, which are the working class and the middle class schools. I enrolled in a middle class school were we all wrote down what the teacher said. Whatever they write on the board, we would copy down. During my senior year, last semester, I took an Economics class that took no work to pass the class. Our teacher, Mr. Adkins, would simply tell the students, “This is what we’re going to do in class today….” He list the topics out and it w...
RBC is one of the Caribbean's leading diversified financial service institutions, with over 100 years of heritage serving this region. Their extensive services include personal commercial, corporate and investment banking, wealth, insurance, trust and asset management.
The bank failure in Jamaica illustrates how negative mindsets and behaviors can devastate the financial system and disrupt economic growth. The primary role of any bank is to safeguard its customer’s money, offer interest rate on deposits, lend money to creditworthy individuals, and make sound investment decisions to maximize shareholder value. Because of rapid economic growth between the late 1980s and early 1990s in Jamaica, the Central National Bank (CNB) and Worker’s Savings and Loans Bank (WSLB) loosened their monetary policies, provided preferential interest rates and extended credit beyond what was reasonable to members of its own board of directors, managing directors, and officers of the bank. These actions posed significant risks to the bank and its future.
THE TYPES OF BENEFITS THAT THE PEOPLE ARE RECEIVING FROM SBI BANK IN LAST FEW GENERATIONS.
Bank of Baroda was established with a paid-up capital of Rs.10 lakh in 1908 in Baroda in Gujarat. After raising Rs.300 crs. through a bond issue in 1995, the bank tapped the capital market with an initial public offering of Rs.850 crs. in 1996.
...estruction. People have the illusion that our generations’ way of living is much better than the past. The truth of it is that money has become a cancer to the human soul and this will cause a variety of negative effects on almost all aspects of life. The banks are huge monsters that become hungrier as people feed it.
The study is primarily designed to find out the continuous issue of the banking system in
It is a known fact that the banking industry plays a huge role in today’s society, the industry has grown rapidly of many decades and still growing. The banking sector is that sector of the society that is actually responsible for the handling of financial assets for other sector of the economy, they do this by investing the financial assets in order to create more wealth in the society while regulating all the activities involved in the process. (What is the banking Sector 2015)
Banks sector is playing an important role in economies. The banking industry, as the classic and the most influential of financial intermediaries, facilitates economic operations. Financial sector in the worldwide country has been changes over these years by looking the changes of financial structure environment and economic conditions. Thus, banks are a very important point to financial system and play an important role as control and contribute growth to the economic sector.
The Traditional Theory of Banking In this paper author review the traditional theory of banking and attempt to examine the theoretical reasons for why banks exist. As a financial intermediation, the natures of the banks are to provide financial services and conduct the intermediary functions in the whole financial system by accepting deposits and making loans. The question raised here are how they conduct these roles and why the borrowers and lenders do not come together without the banks for the saving of intermediation costs, why both of the two parties are ready to pay for their services and what’s the value added by the banks? The paper proceeds as follows. Section 2 offers a traditional view of banks and describes the nature of them.