INTRODUCTION
Banking in India originated in 18th century. The General Bank and The Bank of
Hindustan were among the first banks to be set up. State Bank Of India is the oldest bank of the country. Then in 1935 the Reserve Bank of India was established. A step ahead
were taken when all the major banks were nationalised in 1969 by the Government of India .
Oudh Commercial Bank was the first entirely Indian joint stock bank set up in 1881 in Faizabad .Due to its failure in 1958, Punjab National Bank wsa set up in Lahore in 1894. Then post independence the policy of 1990 shook the Banking sector completely in India. Tech savvy methods of working for banks changed the approach of banking in India. These things led to retail boom
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These bonds are listed on exchanges.
Functions
A commercial banks performs various number of activities. It satisfies sectors like trade, agriculture, industry, communication. Also it plays an important role in social and economic needs. Generally there are 2 types of functions performed by commercial banks, namely ,primary functions and secondary functions .
Primary functions of commercial banks are :
1.They accept deposits from public
2.They provide loans and advances .
3.Another important function of them are credit creation.
Some secondary functions of commercial banks are :
1.Collection and clearance of cheque
2.To make payment of insurance, rent
3.To deal in transactions of foreign
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To provide facility of money transfer
2. To give facility of safety locker
3. To accept bills for the purpose of payment
4. To grant traveller’s cheque
5. To provide smart cards, credit cards,debit cards
6. To give the facility of merchant banking
Example of commercial banks are some pubic sector banks are State Bank of India, Bank of Baroda, Punjab National Bank, Syndicate Bank, Indian Overseas Bank ,Oriental Bank of Commerce, State Bank of Travencore etc. While some private sector commercial banks are HDFC Bank, ICICI Bank, Axis Bank, Global Trust Bank Ltd.
STUDY AREA STATE BANK OF INDIA (SBI)
State Bank Of India (SBI) is an Indian financial service company and also a MNC. It is a wholly government owned bank having its headquarter situated in Mumbai. It has 17,000 branches ,including 190 foreign offices as of December 2013. It is one of the top 4 leading commercial banks in India which also includes ICICI Bank, Punjab National Bank, HDFC
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)
Toward the end of this era around the early 1930s that is when devastation hit. Our market was at an all time low, people began to fear and panic. Eventually the market collapsed, this was known as the Great Depression. People realized the market was not looking great, they started withdrawing their money from the bank. The money people invested into banks was not properly backed up. This caused fear and the banks were not able to reimburse people their money back. As a result of this the Federal Deposit Insurance Corporation (FDIC) was established, which creates stability within banks and also establishes trust. This is important so that people become aware that it is okay to fully trust banks and insure their money in with
...The East India Company began to lose its trade power because of the Regulating Act of 1773, and eventually lost Indian power to other trade countries wanting to gain more money. The Bengal Mutiny of 1857 marked the ending of the East India Company. The British Crown superseded the East Company after the Company’s 200 year reign in India. Three years later, the East India Company headquarters in London was destroyed (East of India Web).
After the disaster of BCCI, the Ministry of Finance (Govt. of Pakistan) acquire its three branches and Habib Credit & Exchange Bank was built-in on June 21, 1992 as a public limited company under the Companies order, 1984 and starting banking operations from November 1, 1992. It betrothed in commercial banking and related services as defined in the baking Companies regulation, 1962.
BCA is one of top 5 bank's in Indonesia with total asset approx. 150 trillion, the business are to provide financial services to its customer include funding, lending activities and also transaction feature which customer needs.
According RBI’s 'Quarterly Statistics on Deposits and Credit of Scheduled Commercial Banks', March 2013, Nationalised Banks accounted for 52.4% of the aggregate deposits, while SBI and its Associates accounted for 22%. The share of Old Private Sector Banks, New Private Sector Banks, Foreign Banks, and Regional Rural Banks in aggregate deposits was 5.1%, 13.6%, 4% and 2.9% respectively.
The bank expansion strategy is enhanced specifically through its business and retail banking strategy for example the strategy entails the identification of new emerging segments of the economy such as the education sector. It is also the strategic objectives of the bank 's to expand through robust and efficient balance sheet, strategic partnership with multilateral agencies as well as MSME initiatives leverage on e-payment and cash management services . Additionally, through technological innovation, products BDM has constantly challenged the domestic market environment for competitive advantage. These advantages have placed the firms as market leader with differentiated services, growing organically its business operations locations and network of branches in the domestic
The industry is composed by a continuum of banks which produce a homogenous product — banking service. Domestic as well as foreign competition is violent. Not to forget the fact that ICBC has not been the first bank to embrace internet banking. So, it is all the more reason which places the bank in the most precarious position to continuously shield it self from the volleying competition.
Commercial banks can also refer to a bank, or a division of a large bank, which more specifically deals with deposit and loan services provided to corporates or large-sized business - as opposed to individual members of the small business - retail banking, or merchant banks.
First of all, we need to stress the main difference which distinguishes banks from building societies, and that is their ownership structure. Banks are private limited companies(p.l.c) whilst building societies are mutual organizations. Banks are profit oriented companies and they are usually listed on the stock market. This means that people and other companies can buy shares in banks. The shareholders are the owners of the banks. If the bank is financially successful, they will receive a dividend which is a proportion of the profits made by the banks. So there is pressure on banks – and all other listed companies - to make money for their shareholders. If they don’t, their shareholders are likely to invest their money elsewhere.
Indian banking industry is the lifeline of the nation and its people. Banking sector is help to developing the various sectors of the economy. Thus, economic development of a country is depends on the success of banking industry and this success is determined to a large extent by understanding the needs and satisfaction of its customers. Today, Indian banks can confidently compete with modern banks of the world.
This report is commissioned to review the development of the banking sector in India. It will cover the history, followed by the structural framework of the industry and the operation of the Central Bank of India, Commercial Banks, Co-operative Banks and other Specialized Banks in India. Banking service and performance of Indian Banks will be discussed. Current situations and prospects of the sector will also be analyzed at the end of the report.
Banks provide loans which are very flexible to the customers; they also provide many other facilities that will help them to get the needful asset that they intended to buy from the market. Overall, the financial service sector is on a high growth mode is showing signs of significant improvement over the years to come.
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.