DEPARTMENT OF TECHNICAL

EDUCATION ANDHRA PRADESH

Name : P. Samba Murthy,
Designation : Head of Department

Branch : D.C.C.P.
Institute : S.R.R.S. Govt. Polytechnic,
Sircilla, Karimnagar District
Year/Semester : V Semester
Subject : Banking – I
Subject Code : CCP- 504(B)
Topic : Indian Banking Industry- Growth
Duration : 50 Minutes
Sub-Topic : Need for Privatization and
Globalization
Teaching Aids : PPTCCP504(B).30 1
Objectives

On completion of this topic, you would

be able to
 Understand the need for globalization of
Banks.

CCP504(B).30 2
 What is Globalization?

 What are the Advantages of Globalization?

CCP504(B).30 3
Introduction
 Globalisation means different things to different
people.
 The globalization, the first step in the direction,
was liberalization in services to the customers
which led to an unprecedented expansion of
boundaries.
 Globalization in India is generally taken to mean
‘integrating’ the economy of the country with the
world economy. .

CCP504(B).30 4
 GLOBALIZATION

 Banking sector in India is expanding at an

incredibly faster pace, with more and more
banks realizing the benefits offered by
globalization.

CCP504(B).30 5
 GLOBALIZATION

 Publicly owned banks handle more than 80% of

the banking business in India and the rest is in
the hands of private sector banks.
 However, banking in both the government and
private sector is being revolutionized by this latest
phenomenon called “globalization”.

CCP504(B).30 6
GLOBALIZATION

 Globalization has offered a number of

advantages to the banking sector in India.
 Remarkable advancements in communication
and information technology have facilitated the
globalization of these domestic banks.

CCP504(B).30 7
 GLOBALIZATION

 Apart from the benefits, several risks are also

associated with the opportunities made
available by globalization
 In order to fortify the Indian banking sector
against the risks involved in globalization,
appropriate regulatory, prudential and
supervisory framework need to the adopted

CCP504(B).30 8
 GLOBALIZATION

 This will help in strengthening the domestic

banking system in a global environment.
 As per the latest market research report name;
“Indian Banking Sector Analysis (2006-2007)”.
 The banking Sector in India is heading towards
Consideration.

CCP504(B).30 9
GLOBALIZATION

 There are about 90 players in the banking

sector in India, with 30 competitors from each
of the public, private and foreign sectors.
 With so many players present in the banking
sector in India, a few of them will emerge as
global competitors in the near future”.

CCP504(B).30 10
 GLOBALIZATION

 Globalisation and Liberalization have brought in

Foreign competition in the Financial Market.
 Financial Institution have diversified largely.
 They now often a wide range a new products and
services.

CCP504(B).30 11
GLOBALIZATION

 To meet the competition, developmental

Financial Institutions have setup Subsidiaries or
Associate Institutions
 They often various services such as commercial
banking , Consumer Finance.
 They also Provide Stock Broking, Venture Capital
Finance.

CCP504(B).30 12
 GLOBALIZATION

 In the Process Globalization, most of the Banks

becoming universal Banks.
 Universal Banks provide a complete range of
Corporate Financial Solutions at one Place.
 A Universal Bank includes Commercial Banking,
Investment Banking and Project Financing.

CCP504(B).30 13
Summary

 Since the globalization, there was considerable

changes in the banking sector in different ways.
 So also remarkable advancements in
communication and information technology have
facilitated the globalization of the domestic banks.

CCP504(B).30 14
Frequently Asked Questions

1) Explain the need for globalization of banks.

2) What are the advantages to the banking sector
due to globalization?

CCP504(B).30 15