Indian Banking Industry: C A Project Report On

A Project report On
Indian Banking Industry
In partial fulfillment of the requirements of the Summer Internship of Post Graduate Diploma in Business Management Through Rizvi Academy of Management
under the guidance of Prof. Jitin Gulati
Submitted by Akshay Salunkhe PGDBM Batch: 2010 2012.
CERTIFICATE
This is to certify that Ms.Darshana Tendulkar , a student of Rizvi Academy of Management, of PGDBM III bearing Roll No. 18 and specializing in Finance has successfully completed the project titled
CREDIT APPRAISAL OF CORPORATE & MSME.
under the guidance of Prof. Jitin Gulati in partial fulfillment of the requirement of Post Graduate Diploma in Business Management by Rizvi Academy of Management for the academic year 2010 2012.
_______________ Prof. Jitin Gulati Project Guide
_______________ Prof. Umar Farooq Academic Coordinator
_______________ Dr. Kalim Khan Director
ACKNOWLEDGEMENT
Apart from the efforts of me, the success of any project depends largely on the encouragement and guidelines of many others. I take this opportunity to express my gratitude to the people who have been instrumental in the successful completion of this project.
I would like to show my greatest appreciation to Prof. Jitin Gulati. I cant say thank you enough for his tremendous support and help. I feel motivated and encouraged every time I attend his lectures. Without his encouragement and guidance this project would not have materialized.
The guidance and support received from all the members who contributed and who are contributing to this project, was vital for the success of the project. I am grateful for their constant support and help.
Also I would like to thank our director Dr. Kalim Khan who has provided us with the necessary infrastructure and guidance in the course of the project. Also I would like to take this opportunity to thank all the teaching as well as non-teaching staff for their continuous help and support.
_______________ Akshay Salunkhe PG Finance Roll No : 04
CONTENTS
CHAPTER No. 1 Introduction: Banks PARTICULAR PAGE No. 1
History of Banking
Origin and History of Banking
Reserve Bank of India
Functions of RBI
Structure of Banking Industry
07
Structure of Banking
08
Types of Banks
09
Retail Banking
23
10
Corporate Banking
30
11
Case Study : State Bank of India
36
12
Conclusion
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What is bank?
An organization, usually a corporation, chartered by a state or federal government, which does most or all of the following: receives demand deposits and time deposits, honors instruments drawn on them, and pays interest on them; discounts notes, makes loans, and invests in securities; collects checks, drafts, and notes; certifies depositor's checks; and issues drafts and cashier's checks.
Origin of word bank

The word bank is derived from the Italian word banco signifying a bench,which was erected in the market-place, where it was customary to exchange money.the Lombard jews were the first to practice this exchange business, the first bench having been established in Italy A.D.808.the Lombard were a German people of suevic origin, though not humorous, played. a distinguished part in the early history of Europe. such as gold, in the form of easy to carry compressed plates. Temples and Palaces The first banks were probably the religious temples of ancient world and were probably established in third millennium B.C. Banks probably predated the invention of money. Deposits initially consisted of grain & later other goods including cattle, agricultural implements and eventually precious metals were the safest palaces to store gold as they were constantly attended and well built. As sacred places, temples presented an extra determent to would be thieves. There are extent records of loans from the 18th century B.C. in Babylon that were made temple priests/monks to merchants. The oldest bank still in existence is monte dei paschi di siena, head quarters in siena, Italy which has been operating continuously since 1472.
Indian Banking Sector
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History of Banking in the World.

Banking in the modern sense of the word can be traced back to medieval and early Renaissance Italy, to the rich cities in the north like Florence , Venice and Geona. The Bardy & Peruzzi families dominated banking in the 14th century Florence, establishing branches in many other parts of Europe. Perhaps the most famous Italian bank was the Medici bank, set up in Geovanni Medici in 1397. The earliest state known deposit bank, Banko di san Giorgio (Bank of St. george)was founded in 1407 at Geona, Italy. Banks can be traced back to ancient times even before money when temples were used to store commodities. During the Third century A.D., banks in Persia and other territories in the Persian. Sassanid Empire issued letter of credit known as akks. Muslim traders are known to have used the cheque or akk system since the time of Harun al-Rashid (9th century) of the Abbasid Cali Phate. In the 9th century t, a muslim businessman could cash an early form of the cheques in China dracon on sources in Baghdad. A tradition that was significantly strengthened in the 13th & 14th century, during the Mangol empire. Fragments found in Cairo Geniza indicate that the 12th century cheques remarkably similar to our own were in use, only smaller to save costs on the paper. They contain a sum to be paid and then the order may so and so pay the bearer such and such an amount. The date and the name of the issue are also apparent.
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Origin and History of Banking In India

Banking in India originated in the 18th century, the 1st bank were the general bank of India which started in 1786, and The Bank of Hinduastan, both of which are now defuct. The oldest bank in existence in India is The State Bank of India, which was originated in The Bank of Calcutta in June 1806, which almost immediately became the bank of Bengal. This was one of the Three presidency banks, the other two being The Bank of Bombay and The Bank of Madras, all three of which were established under charters from the British East India Co. For many years the presidency banks aeted as quasi-central banks, as did their successors. The three banks merged in 1921 to form Imperial Bank of India which upon Indias independance become the State Bank of India. The Reserve Bank which is the Central Bank was created in 1935 by passing Reserve Bank of India Act 1934. In the wake of the Swadeshi Movement, a number of banks with Indian management were established in the country namely, Punjab National Bank Ltd, Bank of India Ltd, Canara Bank Ltd, Indian Bank Ltd, the Bank of Baroda Ltd, the Central Bank of India Ltd. On July 19, 1969, 14 major banks of the country were nationalized and in 15th April 1980 six more commercial private sector banks were also taken over by the government. The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks (banks owned by the government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The Indian banking can be broadly categorized into nationalized,
private banks and specialized banking institutions.
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Central Bank RBI

The origin of Reserve Bank can be traced to 1926 when the royal commission of Indian currency and finance- also known as the Hilton young commissionrecommended the credition of central bank to separate the control of currency and credit from the government and to augment the banking facility throughout the country. RBI, act of 1934 established the Reserve bank as the banker to to the central government and set in motion a sense of action aulminating in the start of operations in 1935. Since then the Reserve Banks role and functions have undergone numerous changes as the nature of the Indian economy has changed. Todays RBI bears some resemblance to the original institution, although our mission has expanded, broadened and increasingly globalised economy.
Preamble
The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as: "...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage."
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FUNCTIONS OF RESERVE BANK OF INDIA

As the central bank of the country, the Reserve Bank of India performs both the traditional functions of a central bank and a variety of developmental and promotional functions,. The Reserve Bank of India Act, 1934, confers upon it powers to act as note-issuing authority. Bankers bank and bankers to the Government.
Reserve Bank as Note-issuing Authority

As required by Section 38 of the Reserve Bank of India Act, Government puts into circulation one-rupee coins and notes through Reserve Bank only. The Reserve Bank has the sole right to issue bank notes in India. The notes issued by Reserve Bank of India are unlimited legal tender. The issue of notes and the general banking business of the Bank are undertaken by two separate department of the Bank. The issue department is responsible for the issue of new notes. The business of banking is undertaken by the Banking Department which holds stock of currency with itself. The assets of the issue Department against which bank notes are issued consist of the following, namely: (a)Gold coins and bullion, (b)Foreign securities, (c)Rupee coins, (d)Government of India rupee securities, and (e)The bills of exchanges and promissory notes payable in India, which are eligible for purchase by the bank.
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Currency Chest
The Reserve Bank has made adequate administrative arrangements for undertaking the functions of distribution of currency notes and coins. The issue department has opened its offices in 10 leading cities for this purpose. Currency chest are receptacles (i.e., boxes and containers) in which stock of new or reissuable notes are stored along with rupee coins
Reserve Bank as Banker to Government

The Reserve Bank of India acts as banker to the Central and State Governments. According to Section 20, it is obligatory for the bank to transact government business including the management of the public debt of the Union. In terms of Section 21-A, the Reserve Bank performs similar functions on behalf of the State governments. RBI holds cash balances of government free of interest. The Reserve Bank is also authorized to make to the Central and State Government ways and means advances which are repayable within 3 months from the date of making the advances. The bank also acts as adviser to the government on important economic and financial matters.
Reserve Bank as Bankers Bank

Reserve Bank is the banker to the banks-commercial, co-operative and Regional Rural Banks. It means Reserve Bank has power to control and regulate the business of other bank such as Commercial, co-operative and regional rural banks, private and public sector bank. Any new bank before starting its business has to get license from the RBI and has to fulfill certain rules and regulation.
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STRUCTURE OF BANKING INDUSTRY:

Banking system plays an important role in a countrys economy. It promotes growth and development of the country. Indian money market comprises organized and the unorganized institutions. The organized and unorganized institutions in the Indian banking system serve a source of short term credit to agriculture, industry, trade and commerce. In the Indian banking structure the Reserve Bank of India is the central bank. It regulates, direct and controls the banking and financial institutions in the country. There are three high banking institutions, namely, RBI, NABARD and EXIM Bank. There are separate financial institutions catering to the needs of different sectors of the economy. Development Banks, Investment Banks, Co-operative Banks, Land Development Banks, Commercial Banks in public and private sectors, NABARD, RRBs, EXIM Bank, etc. The indigenous bankers and moneylenders dominate unorganized sector
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Structure of bank
RBI
Commercial Banks
Co-operative Banks
Banking Institutions
NBFCs
Public Banks
Sector
All
India
Housing Finance Companies
Development State and coop Banks State Finance
Private Sector Banks
central banks
Non
Bank
Companies
Finance Companies
Foreign Banks
Primary Agricultural Credit Societies
Specialized Institutions
Regional Rural Banks Land Development Banks NABARD / NHB EXIM /
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COMMERCIAL BANKS
It is an institution which accepts deposits, makes business loans, and offers related services. Commercial banks also allow for a variety of deposit accounts, such as checking, savings, and time deposit. These institutions are run to make a profit and owned by a group of individuals, yet some may be members of the Federal Reserve System. While commercial banks offer services to individuals, they are primarily concerned with receiving deposits and lending to businesses. A commercial bank is a type of financial intermediary and a type of bank. It raises funds by collecting deposits from businesses and consumers via checkable deposits, savings deposits, and time (or term) deposits. It makes loans to businesses and consumers. It also buys corporate bonds and government bonds. Its primary liabilities are deposits and primary assets are loans and bonds. This is what people normally call a "bank". The term "commercial" was used to distinguish it from an investment bank. Since the two types of banks no longer have to be separate companies, some have used the term "commercial bank" to refer to banks which focus mainly on companies.
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Public Sector Banks
STATE BANK OF INDIA(SBI) INDIAS LARGEST PUBLIC SECTOR BANK Public sector bank profits show 100 per cent growths PUBLIC sector banks have seen their profits zoom in fiscal 2002. Net profits of 186 banks that have announced their results have gone up by 100 per cent to Rs 4,412 crore. Particularly noteworthy is the sharp growth in profits for all the `weak banks' Indian Bank, United Bank of India and UCO Bank. Indian Bank turned in a profit of Rs 33 crore compared to a loss of Rs 274 crore in the previous year while United Bank of India which saw its profits grow more than six-fold to Rs 129 crore. Some of the prominent Public Sector Banks in India are:

State Bank of India Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharastra Canara Bank Central Bank of India
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Rizvi Academy of Management Private Sector Banks
Akshay Salunkhe
HDFC ONE OF THE LARGEST PRIVATE SECTOR BANK Private banking in India was practiced since the beginning of banking system in India. The first private sector bank in India Indusland Bank is a new private sector bank. Among the new private sector banks in India to be set up, was Indusind Bank set up by the Hinduja Group. Initially, it was one of the fastest growing Private Sector Banks in India.
The first Private Bank in India to receive an in principle approval from the Reserve Bank of India was Housing Development Finance Corporation Limited, to set up a bank in the private sector as a part of the RBI's liberalization of the Indian Banking Industry. It was incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and commenced operations as Scheduled Commercial Bank in January 1995.
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Some of the prominent Private Banks in India are:

HDFC Bank ICICI Bank IDBI Bank Jammu & Kashmir Bank Karnataka Bank South Indian Bank Catholic Syrian Bank Centurion Bank of Punjab Dhanalakshmi Bank Development Credit Bank Federal Bank ING Vysya Bank Jammu & Kashmir Bank Karnataka Bank South Indian Bank
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Foreign Banks in India
J.P. MORGAN ONE OF THE LARGEST FOREIGN BANK IN INDIA Foreign Banks in India always brought an explanation about the prompt services to customers. After the set up foreign banks in India, the banking sector in India also become competitive and lucrative.New rules announced by the Reserve Bank of India for the foreign banks in India the last budget has put up great hopes among foreign banks which allows them to grow unfettered. Now foreign banks in India are permitted to set up local subsidiaries. The policy conveys that foreign banks in India may not acquire Indian ones (except for weak banks identified by the RBI, on its terms) and their Indian subsidiaries will not be able to pen branches freely. Some of the foreign banks in India till date are: ABN-AMRO Bank BNP Paribas Bank Citi Bank Deutsche Bank HSBC Standard Chartered Bank
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Co-operative Banks In India
INDIAS LARGEST CO-OPERATIVE BANK The Co operative banks in India started functioning almost 100 years ago. The Cooperative bank is an important constituent of the Indian Financial System, judging by the role assigned to co operatives, the expectations the co operative is supposed to fulfill, their number, and the number of offices the cooperative bank operate. Though the co operative movement originated in the West, the importance such banks have assumed in India is rarely paralleled anywhere else in the world. The cooperative banks in India play an important role even today in rural financing. The businesses of cooperative bank in the urban areas have also increased phenomenally in recent years due to the sharp increase in the number of primary co-operative banks. Co operative Banks in India are registered under the Co-operative Societies Act. The cooperative bank is also regulated by the RBI. They are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1965. The co-operative banking system in India is at a crucial juncture today. The development over the next few years will define whether they will fulfill the purpose of their existence or not. The banks need to take steps in the right direction namely, increased transparency, better corporate governance and a higher degree of professionalism in the day to day functioning.
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They will do well to take a leaf out of the books of the private sector banks, who in spite of the strict regulation from the RBI have not only grown at a fast pace but have also earned international recognition. Hence there is a strong need for cooperation among the governments, the regulators and the bank management if the cooperative movement in India is to be revived and pushed ahead further.
Cooperative banks in India finance urban areas under:

Self-employment Industries Small scale units Home finance Consumer finance Personal finance
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Rizvi Academy of Management BANKING INSTITUTION
Akshay Salunkhe
Industrial Development Bank of India
IDBI Bank Industrial Development Bank of India (IDBI) is the tength largest bank in the world in terms of development. The National Stock Exchange (NSE), The National Securities Depository Services Ltd. (NSDL), Stock Holding Corporation of India (SHCIL) are some of the institutions which has been built by IDBI. IDBI is a strategic investor in a plethora of institutions which have revolutionized the Indian Financial Markets. IDBI Bank, promoted by IDBI Group started in November 1995 with a branch at Indore with an equity capital base of Rs. 1000 million.
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Housing Development Finance Corporation
(HDFC) Housing Development Finance Corporation (HDFC), India`s first and largest mortgage finance company has now grown into a comprehensive financial conglomerate. HDFC has a strong distribution network of 116 offices across the country serving customers in over 2,400 cities/towns. Founded in 1977, HDFC is primarily in the business of providing services from home loans and deposit products, to property-related services and a training facility. It also offers specialized financial services (including consultancy) to its customer base (including corporate and government) through partnerships with other financial institutions. HDFC also serves as consultant to international agencies such as World Bank, United States Agency for International Development (USAID), Asian Development Bank, United Nations Center for Human Settlements (UNCHS), Commonwealth Development Corporation (CDC) and United Nations Development Program (UNDP). It has undertaken assignments for the United Nations Capital Development Fund in Ethiopia, for the UNCHS in Nairobi, for USAID in Russia and Bulgaria, and projects of the World Bank in Indonesia and Ghana.
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National Bank for Agriculture and Rural Development
NABARD National Bank for Agriculture and Rural Development (NABARD) is a development bank in the sector of Regional Rural Banks in India. It provides and regulates credit and gives service for the promotion and development of rural sectors mainly agriculture, small scale industries, cottage and village industries, handicrafts. It also finances rural crafts and other allied rural economic activities to promote integrated rural development. It helps in securing rural prosperity and its connected matters.
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Introduction to Banking
Customers are broadly classified into two: Personal Customers: Individuals having accounts singly or jointly (including minors) Non Personal Customers: Non individual customers like Proprietary concerns, Partnerships, Companies, Trusts, Associations, Clubs, Societies, Institutions, Govt. Departments, NGOs, SHG etc.
Accounts are broadly classified into two: Customer accounts (external accounts) : Deposit accounts (Savings Bank, Current Account etc), Loan Accounts (Demand Loan, Term Loan etc) and Contingent accounts (Bank Guarantee etc) Office accounts. (Internal accounts): Cash Balance accounts, fixed assets account, Drafts account, Sundry Deposit account, Interest account etc.
Basic Deposits Account: Savings Bank : Running account for saving with restriction in number of withdrawal Current Account: Running account without restriction on number of withdrawals Term Deposit : Deposit of an amount for a fixed period where interest is paid monthly/Quarterly Special Term Deposit: Deposit of an amount for a fixed period where interest is compounded (Capitalized) and paid on maturity. Recurring Deposit: Regular (Monthly) deposit of a fixed amount for a fixed period. Indian Banking Sector Page | 19
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Types of Loan Account:

Overdraft Demand Loan Term Loan Cash Credit Overdraft: A Current account when permitted to overdraw (allowing withdrawal more than deposited or without deposits ) becomes an overdraft account Can be operated by cheque, ATM, INB A type of advance of temporary nature/ to valued clients sometimes against Term Deposit, NSC etc. A running account where further withdrawals (debits) can be permitted as and when deposits (credits) come.
Demand Loan: Basically an advance payable on demand. Payment in installments also generally allowed. Given against Bank deposits, NSCs, Insurance policies Gold loans and Pension Loans are given as Demand loans Only one Debit allowed for disbursement. Cannot be operated by cheque & ATM.
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Term Loan:
Loan payable as per pre-determined installments over a fixed term. Extended for acquisition of assets like house, car, land, building, Plant & Machinery etc. Installments are to be paid out of the income of the person in case of Personal Segment loans Installments are to be paid out of the income of the activity financed in case of non-personal segment loans.
Cash Credit: An advance facility for financing the working capital needs of commercial activities. A running account on the lines of Overdraft. An account where all the receipts and payments of the activity on account of day-to-day operations are expected to be reflected. Extended against the stocks and receivables of the unit. (Stocks: raw materials, semi finished goods, finished goods etc, Receivable means money to be received towards sales).
Security and Margin: The physical or financial asset for / against which the advance is made is referred as security. A car is a security for which a car loan is given. Assets acquired out of bank finance is called primary security. Any additional security offered by the borrower is called collateral. However, in CBS parlance all securities are referred as collaterals. The amount contributed by the borrower to the project cost / the percentage value of the assets owned by him is referred as margin. Indian Banking Sector Page | 21
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Charge: An asset offered to the creditor (who lends the money) becomes a security only if a legally enforceable interest is created in his favour. This process is called the creation of Charge. Lien, Pledge, Hypothecation and Mortgage are different types of charges applicable to different types of securities.
Transaction: There are three types of transactions: Cash: Where receipt payment of physical cash is involved Transfer: Where funds are transferred from one account to another account without Clearing: Transfer transactions where funds are exchanged with other banks through clearing
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RETAIL BANKING
Retail banking refers to banking in which banking institutions execute transactions directly with consumers, rather than corporations or other banks. Services offered include: savings and checking accounts, mortgages, personal loans, debit cards, credit cards, and so forth or it is a typical mass-market banking where individual customers use local branches of larger commercial banks. Retail Banking has wider connotation and is not the same as that of retail lending. Retail Banking refers to the efforts of the bankers to reach up to the customers on both fronts of the balance sheet i.e., Liabilities side as well as Assets side. Under the liabilities side, we have deposits. Under the assets side, we have credit schemes of the various banks. The job of the banker has become very difficult in this segment too. Bankers today are offering various sops to attract the potential customers.
Defining retail banking activity :

Retail banking activity is commonly understood to comprise: banking services for consumers (individuals/private households) and banking services for small- and medium-sized enterprises (SMEs). The delineation of each of these two segments, however, is not standardized by, for instance a nomenclature for central banks statistics or other official databases. The inclusion or exclusion of customer categories from these segments depends, to a large extent, on cultural habits, market developments or the individual business strategies of banks. In some countries or specialized banks, for example, services for wealthy individuals and households fall under the so-called segment of private banking. Moreover, whether a certain size category of SMEs belongs to the segment of retail banking or the segment of corporate banking varies from bank to bank.
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In order to reduce this complexity, the Authority has used the following definitions for the purposes of the sector inquiry:
Personal banking, i.e. banking products and services for consumers including current accounts (and related services such as ATM, direct debit and credit transfers), sight deposits and other savings accounts, credit lines/overdrafts (no limits on individual asset size) and consumer loans; business banking, i.e. banking services for enterprises up to a maximum turnover of EUR 10 million annually and including services such as current accounts, term loans and credit lines. This report, following industry and literary usage, will also use the term SME banking or SME customers for this sub-segment. In carrying out the inquiry and, for instance, addressing comprehensive questionnaires to banks in the EFTA States, the Authority has not applied a rigid definition within these general parameters. This approach has allowed for individually flexible definitions, for example by accepting the banks own definition of SME business even where they may be narrower in scope.
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Rizvi Academy of Management Retail banking products and services :
Akshay Salunkhe
Within the two segments mentioned above, the Authority has focused on the following main products: Within the segment of banking services for consumers, three sets of retail banking products form the core of the sector inquiry: Current accounts the bank account which individuals use for most of their household transactions such as receiving wages or paying bills. Deposit accounts an account which individuals use for saving. The accounts provide instant (sight deposits) or time-limited (time deposits) access to funds. Consumer term loans a loan account operating for a specified time period, which is used to fund personal or household consumption.
In addition to these three sets of products, the sector inquiry has also taken some account of other retail banking products for individuals such as payment cards, mortgages and investment funds.
The analysis of banking services for small enterprises (SMEs) focuses on: Current accounts the bank account which SMEs use for the bulk of the payments they make and receive. Term loans - a loan account operating for a specified time period, which an SME uses to finance its business expenditure. Credit lines an open-ended facility which incorporates the credit element of a loan enabling SMEs to draw down finance and the flexibility of a current account for making and receiving payments. In addition to these three sets of products, the sector inquiry has also taken some account of other products for SMEs such as leasing (which involves a banks paying for part or all of the cost of a capital asset for an SME and the bank then leases this asset to the SME). Together with the retail banking products specified above, the sector inquiry also analyses payments systems, since they form the core of money transmission services in personal and SME banking, and are significant structures within the retail banking sector as a whole. Indian Banking Sector Page | 25
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General characteristics of retail banking markets :

The supply side of retail banking markets shows common features that are typical for banking markets in general. The main difference between retail banking and other banking fields is the fragmented demand side of the first, comprising individual consumers and small enterprises. In the following, the characteristics of the supply and demand sides of the market will thus be discussed separately. The demand-side of retail banking markets is, as would be expected, fragmented. Bank customers are often faced with information asymmetry, i.e. lack of full information about the products and services on offer and hence cannot make meaningful comparisons. Moreover, there are numerous barriers to customer mobility (e.g. tying and bundling of products, switching costs such as closure charges, etc.) that result in a certain reluctance to switch suppliers, hence making price competition less efficient. Regulation of retail banking :
Across the EEA, competition authorities are increasingly turning their attention to banking markets. Competition authorities in both Iceland and Norway have dealt with several cases involving retail banking markets over the years.14 It is by now firmly established that EEA competition law applies to the banking sector. One tool of prudential regulation is entry regulation by means of bank license requirements. This is explainable by the rules on own funds adequacy. However, the promotion of stability and the avoidance of a systemic crisis cannot justify all occurring entry restrictions. Such restrictions may also be used by governments to prevent foreign entries or takeovers and thus impede effective competition. Another regulatory issue that also affects market entry concerns specific rules on the ownership and activity of certain types of banks such as savings banks and cooperative banks. The Authority scrutinizes advantages provided to certain financial institutions by means of State aid control in order to ensure a level playing field for all market participants and to enhance undistorted competition. In particular, the Authority ensures that public and private institutions operate under similar conditions by removing unlimited state guarantees or fiscal advantages favoring particular banks and by applying the so-called Market Economy Investor Principle (MEIP). Indian Banking Sector Page | 26
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Drivers Of Retail Growth: CHANGING CONSUMER DEMOGRAPHICS

Growing disposable incomes Youngest population in the world Increasing literacy levels Higher adaptability to technology Growing consumerism Fiscal incentives for home loans Changing mindsets-willingness to borrow/lend Desire to improve lifestyles Banks vying for higher market share Future Of Retail Banking:
The accelerated retail growth has been on a historically low base Penetration continues to be significantly low compared to global bench marks Share of retail credit expected to grow from 22% to 36% Retail credit expected to grow to Rs.575,000 crs by 2010 at an annual growth rate of 25%
Dramatic changes expected in the credit portfolio of Banks in the next 5 years Housing will continue to be the biggest growth segment, followed by Auto loans Banks need to expand and diversify by focussing on non urban segment as well as varied income and demographic groups Rural areas offer tremendous potential too which needs to be exploited
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Challenges:
Sustaining Customer loyalty NPA reduction & Fraud prevention Avoiding Debt Trap for customers Bringing Rural masses into mainstream banking
Current scenario in Retail banking The Indian players are bullish on the Retail business. India compares pretty poorly with the other economies of the world that are now becoming comparable in terms of spending patterns with the opening up of our economy. Retail loans in Taiwan is around 41% of GDP, the figure in India stands at less than 5%.
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Rizvi Academy of Management Opportunities in retail sector
Akshay Salunkhe
Retail banking has immense opportunities in a growing economy like India. The rise of Indian middle class Increasing purchasing power The above factors promises substantial growth to retail banking sector which is in the nascent stage
Scope for retail banking All round increase in economic activity Increase in the purchasing power. The rural areas have the large purchasing power at their disposal and this is an opportunity to market Retail Banking. India has 200 million households and 400 million middleclass population more than 90% of the savings come from the house hold sector. Falling interest rates have resulted in a shift. Now People Want To Save Less And Spend More. Nuclear family concept is gaining much importance which may lead to large savings, large number of banking services to be provided are day- by-day increasing. .
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CORPORATE BANKING
Corporate Banking represents the wide range of banking and financial services provided to domestic and international operations of large local corporates and local operations of multinationals corporations. Services include access to commercial banking products, including working capital facilities such as domestic and international trade operations and funding, channel financing, and overdrafts, as well as domestic and international payments, INR term loans (including external commercial borrowings in foreign currency), letters of guarantee etc. Banks normally provide credit in the form of overdrafts, loans, bills discounted, or import and export finance. The process of extending any of the said forms to corporate borrowers passes through two distinctive phases; the credit decision making process (account relationship management) and the banks' internal operations. Corporate Banking services are an integral part of the Corporate Investment Banking and Markets (CIBM) structure, which focuses on offering a full range of services to multinationals, large domestic corporates and institutional clients. The Investment Banking and Markets division brings together the advisory and financing, equity securities, asset management, treasury and capital markets, and private equity activities of the Group to complete the CIBM structure and provide a complete range of financial products to our clients. Increasingly, ECA financing is being considered by customers and we work closely with our project export finance teams, both onshore and offshore, to provide structured solutions. Clients are serviced by sector based client service teams that combine relationship managers, product specialists and industry specialists to develop customized financial solutions. These form the relationship team along with the Investment Banking & Advisory division. Each team supports the client's worldwide operations, ensuring a full understanding of the company's business and financial needs. Based on our client's requirement, HSBC also assigns Global Relationship Management teams to provide structured solutions.
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In todays global Banking arena, Corporate Bankers are facing a string of unprecedented and sweeping challenges in the areas like Treasury Management, Trade Finance, Risk Management, Compliance Management, Electronic Trading and Derivatives Markets. Compounding this are the mounting complexities from ongoing regulatory changes, decreasing margins and fierce competition Global Relationship Management teams are tasked with understanding in depth the sectors in which our clients operate with the aim of adding value through detailed industry knowledge and structured financial solutions. CORPORATE BANKING OPERATIONS The bank mostly lend against appropriate tangible securities such as deposits, shares, debentures, property, guarantees supported by tangible securities, life policies, goods, gold or other precious metal. The bank may also lend against intangible securities such as unsupported guarantees or assignment of sums due to the borrower by third parties. It is essential that the bank follows the proper procedures in order to obtain good title when taking a security. There is a difference between possession and ownership. The various forms of documents used for obtaining different types of security are also important. Inadequate documentation may well cause losses to the is particularly true for the Trade Financing documentation and the Securities Agreement relating to goods. The bank must also follow proper procedures to realise securities otherwise losses may be incurred. The corporate operations divisions are normally responsible for maintaining securities documentation and updating the customers' mandates with fresh account documentation, account statements, financial statements and relationship reviews. Handling and treatment of delinquent accounts is also an important area of operations. Grading of bad and doubtful debts for an effective recovery process is important. An effective delinquency policy is essential to avoid unnecessary financial losses.
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Akshay Salunkhe
Corporate banking framework
Key Offerings
Corporate Customer Information Finacle provides a 360 degree unified view of the corporate customer through its Enterprise Customer Information File. This enables the bank to create and maintain customer records, which detail financial, group, product preference and trade finance information. The customer record can be linked with related corporate customers and individuals, such as authorized signatories, guarantors, shareholders and
representatives. This enables the maintenance of aggregated and consolidated customer, account and relationship information, across the enterprise.
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Akshay Salunkhe
Commercial Lending
Finacle has rich features and functionality for commercial lending. This includes: Flexible and custom-defined product creation Highly parameterized custom-scheduled disbursement Differential interest rate setup for draw-down, automatic interest accrual and booking Flexible repayment scheduling such as holiday on loans, normal periodic repayments and bullet payments Adjustment or offset sequence on collections - option to first adjust interest demands or principal demands Customer level appropriation of a single amount to multiple commercial loan accounts of the customer in accordance with a predefined account sequence Detailing of account information related to linked accounts and associated project details Handling of pre-payments and calculation of interest on pre-payment amount Booking of forward contracts against the loan account Debt consolidation and crystallization of overdue installments Automatic asset classification, partial write-off and provisioning definition in accordance with the banks norms
Liquidity Management
Liquidity management in Finacle includes a comprehensive range of fund management solutions for corporate customers, designed to enhance return on funds, minimize overdraft charges and optimize funds positions. Finacle offers liquidity management solutions in two proven models, popularly deployed the world over: Target Balancing Notional Pooling
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Akshay Salunkhe
Securitization
Finacle supports securitization by providing an avenue for banks to dispose assets to investor groups through creation of a pool of accounts. This is premised on predefined parameters such as customer, product and collateral. Pool processing, assessment, reassessment and cancellation are supported. Receivables management through an Escrow account for Special Purpose Vehicles (SPV) is supported. Purchase consideration can be computed on the basis of principal outstanding with or without the discounting factor, with a wide range of service fees computation, at the pool and account levels.
Limits
Finacle universal banking solution supports a global, centralized structure for limits management. Online real time monitoring and updating of multi-currency exposure on transaction completion, is supported. A hierarchical structure with unlimited levels of limits and sub-limits for a customer or a corporate group can be defined. Other features include: Revolving and non-revolving limits, for funded and non-funded lines of credit Exception handling on busting of limits during account opening, maintenance and transaction events Limit level interest rates for overdraft and term loan accounts Shared limits for multiple customers and user-maintained ad-hoc limits Transfer facility limits and re-transfer limits; support for future-dated limits
Collateral Management
Finacle universal banking solution supports the definition and maintenance of a wide range of movable and immovable securities in multiple currencies, linked to various credit facilities. The collateral can be linked to a limit or an account and drawing power can be derived from the value of the collateral on a pre-defined basis such as valuation, margin, loan-to-value ratio and revaluation, in terms of market value. This helps banks manage online exceptions at the account, limit and transaction levels on collateral value erosion, withdrawal of lodged collateral and expiry of collateral.
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Akshay Salunkhe
Trade Finance
Finacles trade finance offerings are full-fledged and present multiple products and services that cater to every trade requirement of the banks corporate clientele. Banks can initiate inward and outward remittances with STP capabilities for major payment systems used in cross-border funds transfer. Import and export financing is enabled with products such as pre-shipment & packing credits, post-shipment credits, documentary credits and bill discounting. Finacle universal banking solution can handle forward contracts and linkage of the contract to various events such as disbursement, rollover and offset. The solution supports maintenance of Nostro and Vostro accounts, while facilitating reconciliation and online position updates on account of cross-currency transactions.
Syndication
Finacle offers multiple avenues for facilitation of syndication arrangements for project financing and large corporate loans involving multiple banks. It supports syndicated loan products over a three layer structure referred as the facility, tranche and drawdown with support for complex transactions involving payments, interest, notices, fees, charges, drawdown and documentation.
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Akshay Salunkhe
Introduction to State Bank of India:

Evolution of SBI: Born as Bank of Calcutta (2 June 1806). Renamed Bank of Bengal (2 January 1809). Bank of Bombay (15 April 1840). Bank of Madras (1 July 1843). All three were called Presidency Banks. Amalgamated as Imperial Bank of India on 27 January 1921.
Birth of SBI: An Act was passed in Parliament in May 1955 and the State Bank of
India was constituted on 1 July 1955. State Bank of India (Subsidiary Banks) Act was passed in 1959,
enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries (later named Associates). State Bank of India was thus born with a new sense of social purpose
with 480 offices, 3 Local Head Offices and a Central Office.
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History of SBI:
The evolution of State Bank of India can be traced back to the first decade of the 19th century. It began with the establishment of the Bank of Calcutta in Calcutta, on 2 June 1806. The bank was redesigned as the Bank of Bengal, three years later, on 2nd January 1809. It was the first ever joint-stock bank of the British India, established under the sponsorship of the Government of Bengal. Subsequently, the Bank of Bombay (established on 15 April 1840) and the Bank of Madras (established on 1 July 1843) followed the Bank of Bengal. These three banks dominated the modern banking scenario in India, until when they were amalgamated to form the Imperial Bank of India, on 27 January 1921.
An important turning point in the history of State Bank of India is the launch of the first Five Year Plan of independent India, in 1951. The Plan aimed at serving the Indian economy in general and the rural sector of the country, in particular. Until the Plan, the commercial banks of the country, including the Imperial Bank of India, confined their services to the urban sector. Moreover, they were not equipped to respond to the growing needs of the economic revival taking shape in the rural areas of the country. Therefore, in order to serve the economy as a whole and rural sector in particular, the All India Rural Credit Survey Committee recommended the formation of a state-partnered and state-sponsored bank.
The All India Rural Credit Survey Committee proposed the take over of the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. Subsequently, an Act was passed in the Parliament of India in May 1955. As a result, the State Bank of India (SBI) was established on 1 July 1955. This resulted in making the State Bank of India more powerful, because as much as a quarter of the resources of the Indian banking system were controlled directly by the State. Later on, the State Bank of India (Subsidiary Banks) Act was passed in 1959. The Act enabled the State Bank of India to make the eight former State-associated banks as its subsidiaries.
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Rizvi Academy of Management State Bank Today
Akshay Salunkhe
(Rupees in Crores) BALANCE SHEET AS AT 31ST MARCH 2009 Balance Sheet size Aggregate Deposits Total Advances Capital Funds Net Profit Paid-up Capital 7,21,526 5,37,404 4,16,768 69,762.64 6,729.12 631.47
(In percentage terms) BALANCE SHEET AS AT 31ST MARCH 2009 Yield on Advances (Domestic) Cost of Deposits (Domestic) Net Interest Margin Gross NPA Ratio Net NPA Ratio Capital Adequacy Ratio Return on Average Assets 9.90 5.59 3.07 3.04 1.78 13.47 1.01
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Akshay Salunkhe
AS AT 31ST MARCH 2009 No. of Branches No. of Foreign Offices No. of Branches on CBS No. of employees No. of ATMs 10,186 84 All Branches 1,79,205 > 8,000
The Bank handles almost the entire gamut of financial services. It is a financial supermarket. The Bank extends banking services to: o Corporate Sector o SMEs o Rural sector, especially Agriculture and allied activities o Retail sector, i.e., Personal Segment The Bank has designed both Deposits as well as Advances products for specific segments as per their requirements. The loans range from Rs.100/- to say, Rs. 10,000 crores.
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Key Areas of Operations

The business operations of SBI can be broadly classi.ed into the key income generating areas such as National Banking, International Banking, Corporate Banking, & Treasury operations. The functioning of some of the key divisions is enumerated below
a) Corporate Banking The corporate banking segment of the bank has total business of around Rs1,193bn. SBI has created various Strategic Business Units (SBU) in order to streamline its operations. TheseSBUs are as follows: a.1) Corporate Accounts This SBU is important for the bank as its loan portfolio constituted about 27.05% of the banks commercial and institutional non-food credit and 12.85% of the total domestic credit portfolio as on 31st March 2006. Some of the products under corporate accounts SBU are as follows: SBI-FAST, which is the cash management product offered by this SBU, had a turnover of Rs.4,705.75bn as of 31st March 2006. This product is now a comprehensive cash management solution, offering payments in addition to collections. Vendor .nancing activity is being integrated with core banking through the internet platform. This is identi.ed as a focus area to capture the credit portfolio of vendors.
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Akshay Salunkhe
The foreign exchange business grew by around 55% y-o-y and reached Rs.1,747.70bn as of 31st March 2006. This SBU now handles nearly 12% of the countrys visible trade and about 43% of banks forex business. a.2) Leasing This SBU is not writing any leases since the past few years as unfavorable business climate and availability of alternative funding options at cheaper cost. As at the end March 2006, the disbursements and capitalization were zero and pro.t amounted to Rs.245.9mn. a.3) Project Finance This SBU focuses on funding core projects like power, telecom, roads, ports, airports, special economic zones and others. During FY06, total sanctions for 18 projects involving a total amount of Rs.42.11bn were in place as against 13 projects involving Rs.25.08bn in the previous year. It also handles non-infrastructure projects with certain ceilings on minimum project costs. During FY06 sanctions for 29 projects involving a total amount of Rs.55.80bn were in place as against 27 projects involving Rs.51.63bn in the previous year. As a whole, this SBU achieved total sanctions of Rs.238.86bn (fund based and non fund based) including syndication amount of Rs.140.95bn during the period ended March 2006. During FY06, this SBU entered into .nancing of aviation sector actively by sanctioning loans for modernization of airports and acquisition of aircrafts. a.4) Mid Corporate Group The Mid Corporate Group (MCG) created in June 2004 has 7 MCG Regional Of.ces controlling 28 large branches with high concentration of Mid Corporate (MC) business. The entire Off-Site MC business of all branches at 31 identi.ed centres has been brought under the fold of MCG. The average processing time of credit proposals is about 15 days and quicker decision making on credit proposals of the Mid Corporate units has resulted in greater customer satisfaction. As of March 2006, 21 MCG branches have been migrated to core banking platform. New technology products like RTGS, CINB, Multi-City cheque facility and Core Power have been, introduced in all these branches. These technology products coupled with quick Turn Around Time (TAT) have enabled Mid-Corporate Group to increase its business substantially and generate higher income, both interest and fee based.
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Akshay Salunkhe
a.5) Stressed Assets Management During FY06, the banking industry witnessed a major policy initiative by Reserve Bank of India with the opening up of sale / purchase of non performing assets to banks, FIs and non-banking .nance companies (NBFCs). During FY06, the bank sold NPAs to the tune of Rs.8.9bn against security receipts and Rs.11.41bn on cash basis to Asset Reconstruction Company (ARCIL). The progress in enforcing the security interest has somewhat slowed down due to the requirement of withdrawing suits pending before the tribunal prior to action being initiated against the defaulting borrowers under the SARFAESI Act. b) National Banking The national banking group has 14 administrative circles encompassing a vast network of 9,177 branches, 4 sub-of.ces, 12 exchange bureaus, 104 satellite of.ces and 679 extension counters, to reach out to customers, even in the remotest corners of the country. Out of the total branches, 809 are specialized branches. This group consists of four business group which are enumerated below: b.1) Personal Banking SBU This SBU is mainly responsible for retail business. During FY06, personal banking advances increased from Rs.464.51bn to Rs.610.67bn, showing a growth of Rs.146.16bn at the rate of 31.47 % against a growth rate of 40.12% in the previous year. On the home loan front, several new products were introduced, tailored to .t the needs of speci.c customer segments, such as SBIMaxgain (minimize interest burden, earn on savings, at no extra cost), SBI NRI-Home Loans, SBI Freedom Home Loans (Loans given without mortgage of property, but against alternate securities, instead), SBI Tribal Plus Home Loans. The auto loans portfolio has shown a growth of Rs.17.74bn in absolute terms and 65% which is considerably higher than last years growth, mainly due to implementation of well planned strategies.
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Rizvi Academy of Management b.2) Small & Medium Enterprises
Akshay Salunkhe
The SME Business Unit implemented comprehensive strategies, revamped business processes and with its focus on market dynamics and customer preferences, achieved commendable business growth. The initiative was implemented by focusing on speci.c industry segments, and concentrating on various players in the value chain. Debt restructuring mechanism for units in SME sector has been devised to ensure restructuring of debt of all eligible Small and Medium Enterprises (SMEs) on favourable terms. Focused on the SME sector, projects under Uptech are taken up in location speci.c and activity speci.c industry clusters. So far the bank has taken 28 projects for modernization under the Project Uptech covering industries like foundry, pumps, glass, auto components, and knitwear, etc. The bank has also covered agro based industries like rice mills, sago andstarch and horticulture activities like Apple Orchards and grape farming under the scheme. The deposits of the SME SBU increased to Rs.1,042.70bn as at the end of March 2006 from Rs.890.60bn of previous year recording a growth of 17.08% during the year. SME advances increased to Rs.456.53bn from Rs.328.30bn of previous year, recording a growth of 39.06 %. The criteria laid down by the Government of India for growth in SME advances is 20%. b.3) Agricultural Banking This SBU is accountable for agricultural credit both traditional and new thrust areas like contract farming, farmers .nanced through Agri Export Zones (AEZs) and value chain .nancing. Increase in disbursements during FY06 was 83% against the Govt. of India target of 30%. Agricultural advances grew from a level of Rs.205.26bn in FY05 to Rs.305.16bn as at the end of March 06. As on November 2006, agriculture loans contribute 11% of the total loan book. b.4) Government Banking With the establishment of the government business unit and the consequent focus on marketing, business turnover of this segment has grown substantially over the years. Banks business turnover from the government business segment during 2004-05 was Rs.8,843.81bn. The turnover increased by 10.52 % to Rs.9,773.90bn during FY06.
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Rizvi Academy of Management c) International Banking
Akshay Salunkhe
SBI has a network of 73 overseas of.ces in 30 countries in all time zones and correspondent relationship with 520 international banks in 123 countries. The bank is keen to implement core banking solution to its international branches also. During FY06, 25 foreign of.ces were successfully switched over to Finacle software. SBI has installed ATMs at Male, Muscat and Colombo Of.ces. In recent years, SBI acquired 76% shareholding in Giro Commercial Bank Limited in Kenya and PT Indomonex Bank Ltd. in Indonesia. The bank incorporated a company SBI Botswana Ltd. at Gaborone.
d) Treasury The bank manages an integrated treasury covering both domestic and foreign exchange markets. In recent years, the treasury operation of the bank has become more active amidst rising interest rate scenario, robust credit growth and liquidity constraints. The bank diversi.ed its operations more actively into alternative assets classes with a view to diversify the portfolio and build alternative revenue streams in order to offset the losses in .xed income portfolio. Reorganisation of the treasury processes at domestic and global levels is also being undertaken to leverage on the operational synergy between business units and network. The reorganization seeks to enhance the ef.ciencies in use of manpower resources and increase maneuverability of banks operations in the markets both domestic as well as international. e) Associates & Subsidiaries The State Bank Group with a network of 14,061 branches including 4,755 branches of its seven Associate Banks dominates the banking industry in India. In addition to banking, the Group, through its various subsidiaries, provides a whole range of .nancial services which includes Life Insurance, Merchant Banking, Mutual Funds, Credit Card, Factoring, Security trading and primary dealership in the Money Market.
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e.1) Associates Banks: SBI has seven associate banks namely State Bank of Indore State Bank of Travancore State Bank of Bikaner and Jaipur State Bank of Mysore State Bank of Patiala State Bank of Hyderabad State Bank of Saurashtra All associate banks have migrated to Core Banking (CBS) platform. Single window delivery system has been introduced in all associate banks. SBIs seven associate banks are the .rst amongst the public sector banks in India to get fully networked through CBS, providing anytime-anywhere banking to its customers to facilitate a bouquet of innovative customer offerings.
e.2) Non-Banking Subsidiaries/Joint Ventures i) SBI Life: SBI Life is the third largest private insure with the market share of 10.21% among the private players and number one in terms of number of lives insured amongst private players (no. of lives insured and policies is 25mn). In H1FY07 gross premium was Rs.7.68bn.
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Rizvi Academy of Management ii) SBI Capital Markets Limited (SBICAP)
Akshay Salunkhe
SBI Caps forged ahead in issue management, project advisory and structured .nance, sales and distribution. To capitalize on the emerging opportunities, SBI Caps has promoted four wholly owned subsidiaries viz. SBICAP Securities Ltd. for undertaking stock broking activities, SBICAPS Ventures Limited, SBICAP Trustee Company Limited for undertaking venture capital business and SBI CAP (UK) LTD., for carrying on the Financial Services Authority (FSA) regulated activities. On the international front, the expertise of SBI Caps in the infrastructure and project advisory has received international acclaim. In addition, the company has been placed 11th globally in the Mandated Project Advisor league tables by Thompsons, and one of the projects handled by the company has been selected as the Asia Paci.c Infrastructure deal of the year for FY06. SBI Caps booked gross income amounting to Rs.1.79bn in FY06 as against Rs.1.75bn in the previous year, while PAT of the company was at Rs.906.2mn in FY06 as against Rs.881.2mnin the last year. iii) SBI DFHI LTD SBI group holds 67.01% of the companys paid up capital, while other nationalized banks hold 22.46%. All India .nancial institutions and private sector banks hold 5.84% and the Asian Development Bank holds 4.69% as on March 31, 2006. For the year ended 31st March, 2006, the company has earned a PAT of Rs.24.4mn. Total secondary market turnover of the company was Rs.285.39bn which amounted to a market share of 12.89% among all primarydealers. iv) SBI Cards & Payments Services Pvt. Ltd. (SBICSPL) SBICSPL is ranked 2nd in industry with cards in force over 3mn as on September 06. During FY06, the aggregate revenue generated by the SBICSPL was Rs.5.27bn while pre-tax pro.t was Rs.558.6mn.
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Rizvi Academy of Management v) SBI Funds Management (P) Ltd. (SBIFMPL)
Akshay Salunkhe
SBI Mutual Fund is the mutual funds arm of the bank. SBIFMPL reported a total in.ow of Rs.481.67bn in the various schemes during the year. The total assets under management are Rs.132.49bn. The company reported a net pro.t of Rs.186.4mn as at the end of March,2006. f) Human Resources The bank had total staff strength of 198,774 on the 31st March, 2006. Of this, 29.51% are of.cers, 45.19% clerical staff and the remaining 25.30% were sub-staff. SBI had launched VRS scheme for its employees in FY01 in which it has reduced it staff by approximately 5,000 and estimates natural retirement of another 5,000 employees in next 4-5 year.
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Akshay Salunkhe
OUR VISION: MY SBI MY CUSTOMER FIRST MY SBI: FIRST IN CUSTOMER SATISFACTION MISSION: We will be prompt, polite and proactive with our customers. We will speak the language of young India. We will create products and services that help our customers achieve their goals. We will go beyond the call of duty to make our customers feel valued. We will be of service even in the remotest part of our country. We will offer excellence in services to those abroad as much as we do to those in India. We will imbibe state of the art technology to drive excellence.
VALUES : We will always be honest, transparent and ethical. We will respect our customers and fellow associates. We will be knowledge driven. We will learn and we will share our learning. We will never take the easy way out. We will do everything we can to contribute to the community. We will nurture pride in India.
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Indian Banking Industry: C A Project Report On

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Indian Banking Industry: C A Project Report On

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A Project report On

Indian Banking Industry

under the guidance of Prof. Jitin Gulati

Submitted by Akshay Salunkhe PGDBM Batch: 2010 2012.

CREDIT APPRAISAL OF CORPORATE & MSME.

_______________ Prof. Jitin Gulati Project Guide

_______________ Prof. Umar Farooq Academic Coordinator

_______________ Dr. Kalim Khan Director

_______________ Akshay Salunkhe PG Finance Roll No : 04

Origin and History of Banking

Reserve Bank of India

Structure of Banking Industry

Case Study : State Bank of India

Rizvi Academy of Management

Origin of word bank

Indian Banking Sector

Rizvi Academy of Management

History of Banking in the World.

Indian Banking Sector

Rizvi Academy of Management

Origin and History of Banking In India

private banks and specialized banking institutions.

Indian Banking Sector

Rizvi Academy of Management

Central Bank RBI

Indian Banking Sector

Rizvi Academy of Management

FUNCTIONS OF RESERVE BANK OF INDIA

Reserve Bank as Note-issuing Authority

Indian Banking Sector

Rizvi Academy of Management

Reserve Bank as Banker to Government

Reserve Bank as Bankers Bank

Indian Banking Sector

Rizvi Academy of Management

STRUCTURE OF BANKING INDUSTRY:

Indian Banking Sector

Rizvi Academy of Management

Housing Finance Companies

Development State and coop Banks State Finance

Private Sector Banks

Primary Agricultural Credit Societies

Regional Rural Banks Land Development Banks NABARD / NHB EXIM /

Indian Banking Sector

Rizvi Academy of Management

Indian Banking Sector

Rizvi Academy of Management

Public Sector Banks

Indian Banking Sector

Rizvi Academy of Management Private Sector Banks

Indian Banking Sector

Rizvi Academy of Management

Some of the prominent Private Banks in India are:

Indian Banking Sector

Rizvi Academy of Management

Foreign Banks in India

Indian Banking Sector

Rizvi Academy of Management

Co-operative Banks In India

Indian Banking Sector

Rizvi Academy of Management

Cooperative banks in India finance urban areas under: