Private Sector Bank Essay

SACHIN DATTATRAY SOLANKE PRN NO.:150202420356 Private sector Banks ( ICICI and Yes bank)

Private Sector Banks

Introduction: Private sector banks are those banks where more parts if stake are held by private share holder and not by government. Private sector banks in India are initiated in 1969 at that time all banks are nationalised by government of India. However, since liberalisation in government banking policy in the 1990s, old and new private sector banks have re-emerged. They have grown faster and bigger over the two decades since liberalisation using the latest technology, providing contemporary innovations and monetary tools and techniques.

These banks were not nationalized because of their small size and they were just focused on regional areas. One of the positive points of private sector bank is that, they lean from past and their experience on service and technology and as such, they are likely to attract more business in days to come with the restructuring of the industries.

Some of Old Private Sector Banks:

 Bank of Punjab - 1943

 City union bank - 1905

 Federal bank - 1931

 ING vysya Bank Merged with Kotak Mahindra bank – 1930

 Karnataka bank – 1924

 IDB bank Ltd – 1964 New Private Sector Banks: The banks which started in 1991 with the introduction of economic reforms and financial sector reforms are called "new private-sector banks". New banking regulation bank act comes in operation in 1993, this act permit to entry of new private sector banks in Indian bank sectors. For this some criteria are made like they should have a minimum wealth of Rs 200 crores.

Some New Private Sector Banks;

 Axis Bank -1994

 ICICI Bank – 1996

 Induslnd Bank – 1994

 Kotak Mahindra Bank -2003

 HDFC Bank -1994

 Yes Bank-

In FY2015, the Bank has so far raised US$500 Mn Equity through QIP and Long term Funding of US$422 Mn through Dual Currency Syndicated Facility and US$200 Mn from Asian Development Bank aggregating to approximately US$1.2 Bn. CASA Ratio improves steadily to 22.6% from 20.9% a year ago. SA deposits grew by 42.8% y-o-y.

Annual Report:

April 1, 2014 to April 1, 2013 to Particulars March 31, 2015 March 31, 2014 Deposits 91,176 74,192 Borrowings 26,220 21,314 Advances 75,550 55,633 Total Assets/Liabilities 136,170 109,016 Net Interest Income 3,488 2,716 Non Interest Income 2,046