Indian Financial System Analysis

The Indian financial system comprises of four segments or components. These are financial institutions, financial markets, financial instruments and financial services. Banks come under the financial institutions segment. Financial institutions are intermediaries that mobilize savings and facilitate allocation of funds in an efficient manner. The Indian financial system was quite well developed even prior to India’s political Independence in August 1947. Both foreign and domestic banks were present and so was a well-developed stock market.

Since India attained independence, there has been a continuous effort on the part of the government to develop and stabilize the banking operations with a view to accelerating the pace of socio-economic development of the country. As a step to this approach, bank nationalization was undertaken to give autonomy in banking and also to arrest the long standing practice of the private sector banks to

It was incorporated on February 18th, 1924 at Mangalore, Dakshina Kannada district in Karnataka State. The bank took shape during the freedom movement of 20th Century India. Over the years the Bank grew with the merger of Sringeri Sharada Bank Ltd., Chitradurga Bank Ltd. and Bank of Karnataka. This bank has over 85 years of experience at the front of providing professional banking services and quality customer service, the bank has a national presence of the bank with a network of 464 branches 171 ATM outlets, 8 regional offices, one International Division, one Data Centre, one customer care center, 5 Service branches. 2 Currency chest, 6 Extension counters and 2 Central processing canters spread across 20 states and 2 Union Territories. Managed by a enthusiastic & professional management team, Karnataka Bank has more than 5,256 employees, 71,822 shareholders and over 3.7 million customers. Today, Karnataka Bank has emerged as a leading financial service institution in