OBJECTIVES OF THE STUDY

To study broad outline of management of credit, market and operational risks associated with banking sector. To understand the importance of banking sector. To study the Indian bank scenario and its problem. Long Term and Short Term Finances. To study the role of bank in Indian Market. Different types of services provided by the banks. To study various bank, Corporate and Commercial. To study the Indian bank scenario and its problem. Though the Indian Banking System is very wide and elaborated, still the project covers whole subject in concise manner. The study aims at learning the techniques involved to manage the various types of Banks, various methodologies undertaken. To offer suggestions based upon the findings.

SCOPE OF THE STUDY

A healthy banking system is essential for any economy striving to achieve good growth and yet remain stable in an increasingly global business environment. The Indian banking system, with one of the largest banking networks in the world, has witnessed a series of reforms over the past few years like the deregulation of interest rates, dilution of the government stake in public sector banks (PSBs), and the increased participation of private sector banks. The growth of the retail financial services sector has been a key development on the market front. Indian banks (both public and private) have not only been keen to tap the domestic market but also to compete in the global market place. Studying the increasing business scope of the bank. Market segmentation to find the potential customers for the bank. Customers perception on the various products of the bank. The corporate sector has stepped up its demand for credit to fund its expansion plans; there has also been a growth in retail banking. The report seeks to present a comprehensive picture of the various types of bank. The banks can be broadly classified into two categories: Nationalise Bank Private Bank Within each of these broad groups, an attempt has been made to cover as comprehensively as possible, under the various sub-groups.

LIMITATION OF THE STUDY

Every work has its own limitation. Limitations are extent to which the process should not exceed. Limitations of this project are: The project was constrained by time limit of two months. The major limitation of this study shall be data availability as the data is proprietary and not readily shared for dissemination. Due to the ongoing process of globalization and increasing competition, no one model or method will suffice over a long period of time and constant up gradation will be required. As such the project can be considered as an overview of the various banks prevailing in Punjab National Bank and in the Banking Industry. Each bank, in conforming to the RBI guidelines, may develop its own methods for measuring and managing risk. The project study is restricted to banking sector used in India only. The conclusion made is based on a sample study and does not apply to all the Individuals. In India the banks are being segregated in different groups. Each group has their own benefits and limitations in operating in India. All banks are not included.

PROBLEMS: -The corporate sector has stepped up its demand for credit to fund its expansion plans, there has also been a growth in retail banking. However, even as the opportunities increase, there are some issues and challenges that Indian banks will have to contend with if they are to emerge successful in the medium to long term.

RESEARCH METHODOLOGY:The first stage included the introduction of Indian Banks and how they work in India. I choose five criteria Growth, Credit quality, Strength, Profitability, Efficiency /Profitability. The next stage involved determining the objectives of the study, drafting questionnaire will be designed keeping in mind the target audience and objectives of the study. It will non-disguised in nature and will include a few open-ended questions.

DATA COLLECTIONS
The data from such organization has also been collected.

Primary Data
The primary data will be collected through the questionnaire designed. In the process of data collection we went to the respective bank to get the questionnaire filled. The preparation of the project report required me to visit the various other companies like Punjab National Bank, ICICI bank, and State Bank of India, Central Bank, IDBI bank etc. in order to collect data.

Secondary Data
The Preparation of the project report also required data from various journals, newspapers ( like The Economic Times, Times of India etc.) books ( like Working Capital Management written by Sarbesh Mishra and Financial Service written by M Y Khan etc.)

SCOPE OF BANKING SECTOR

Banking business has a history of over 200 years. From the times of the Bank of Bengal (1806) the sector has been witnessing qualitative and quantitative changes. Main players during the pre-independence period were Credit Lyonnais, Allahabad Bank, Punjab National Bank and Bank of India. With 1935 regulation the Reserve Bank of India was proclaimed the Central Bank of India and was vested with controlling powers over the commercial banks. The drastic development taken place during the first 25 years since independence was Nationalization of many private banks. With this, the central government became major policy maker for these nationalized banks. With economic liberalization measures many private and foreign banking companies were allowed to operate in the country. Favorable economic climate and variety of other factors such as demand for wide range of financial products from various sections of the society led to mutually beneficial growth to the banking sector and economic growth process. This was coincided by technology development in the banking operations. Today most of the Indian cities have networked banking facility as well as Internet banking facility. A customer is empowered to operate his account from any part of the country. UTI Bank, ICICI, HDFC Bank and Bank of Punjab are the main winners of the race.

BANKING IN INDIA
Banking in India originated in the first decade of 18th century with The General Bank of India coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are now defunct. The oldest bank in existence in India is the State Bank of India being established as "The Bank of Bengal" in Calcutta in June1806. A couple of decades later, foreign banks like Credit Lyonnais started their Calcutta operations in the 1850s. At that point of time, Calcutta was the most active trading port, mainly due to the trade of the British Empire, and due to which banking activity took roots there and prospered. The first fully Indian owned bank was the Allahabad Bank, which was established in 1865. By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded under private ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935.After India's independence in 1947; the Reserve Bank was nationalized and given broader powers.

RESERVE BANK OF INDIA