INDIAN BANKING STRUCTURE

AKASH GULATI(09) ANCHAL KUMAR(10) SHARAD KUMAR(47)

History

Banking

Banking Activities

Services provided by Banks

Bank Accounts Loans Money Transfer Credit and Debit cards Lockers

Services provided to NRIs

Non-Resident (Ordinary) Account NRO A/c Non-Resident (External) Rupee Account - NRE A/c Non-Resident (Foreign Currency) Account - FCNR A/c

Marketing of Banking Services

It is concerned with product, place, pricing, distribution, and promotion decisions in the changing socio-economic and business environment.

Concerned with the designing of product strategies keeping in view the needs and requirements of prospects.

It is also related with the place decision i.e. locating bank at suitable point.

Primary Operations of Banks

GROWTH IN INDIAN BANKING ASSETS

DIFFERENT GROUPS
Banks in India are categorized in five different groups according to their ownership and/or nature of operation. These bank groups are (i) State Bank of India and its associates, (ii) Nationalised Banks, (iii) Regional Rural Banks, (iv) Foreign Banks and (v) Other Indian Scheduled Commercial Banks

THERE ARE 71,177 BANK OFFICES SPREAD ACROSS THE COUNTRY, OF WHICH 43 % ARE LOCATED IN RURAL AREAS, 22% IN SEMI-URBAN AREAS, 18% IN URBAN AREAS AND THE REST (17 %) IN THE METROPOLITAN AREAS. THE MAJOR BANK GROUPS (AS DEFINED BY RBI) FUNCTIONING ARE STATE BANK OF INDIA AND ITS SEVEN ASSOCIATE BANKS, 19 NATIONALIZED BANKS AND THE IDBI LTD, 19 OLD PRIVATE SECTOR BANKS, 8 NEW PRIVATE SECTOR BANKS AND 29 FOREIGN BANKS

Types of banks

Central Bank Reserve bank of India

Public Sector Bank

Allahabad Bank | Andhra Bank | Bank of Baroda | Bank of India | Bank of Maharashtra | Canara Bank | Central Bank of India | Corporation Bank | Dena Bank | Indian Bank | Indian Overseas Bank | Oriental Bank of Commerce | Punjab & Sind Bank | Punjab National Bank | State Bank of India | Syndicate Bank | UCO Bank | United Bank of India | Union Bank of India | Vijaya Bank

Private Sector Banks

Examples: Bank of Punjab | Bank of Rajasthan | Catholic Syrian Bank | Centurion Bank | City Union Bank | Dhanalakshmi Bank | Development Credit Bank | Federal Bank | HDFC Bank | ICICI Bank | IDBI Bank | IndusInd Bank | ING Vysya Bank | Jammu & Kashmir Bank | Karnataka Bank | Karur Vysya Bank | Laxmi Vilas Bank | South Indian Bank | United Western Bank | UTI Bank

Development Banks/Financial Institutions

WHO CONTROLS BANKS

Became operational on April 1 1935 Nationalized in 1949 Major objectives Issue of currency Maintain reserve with a view to secure monetary policy

HOW IT CONTROLS

Cash reserve ratio (CRR) Repo rate Reverse repo rate Statutory liquidity ratio (SLR) Bank rate

OVERVIEW OF INDIAN BANKING SYSTEM

Phase 1- from 1786

Phase 2- nationalization of Indian banks Phase 3- after 1991

OTHER BANKING ACTIVITIES

Foreign exchange services Bank services to government Payment & settlement system NRI remittence Cash management services

PARA BANKING ACTIVITIES

Primary dealership business. Merchant banking Investment banking Mutual fund business. Depository services. wealth management services.

NEW TECHNOLOGIES IN BANKING SECTOR

The Indian banking sector has seen an acceleration with the introduction of technological transformation like:
ATMs Telephone

banking, online banking, web based products, E-cheques, Credit cards, Debit cards.

Easy Banking

Mobile Banking

SMS Banking

Internet Banking/E-Banking:

SWOT Analysis of Banking Industry

Strength
Support

Weakness
Too

from the government Financial assistance

many small Banks Regulatory environment

Opportunities
Electronic

Threats
Investment

forms of business Technology Untapped market Young India &rising standard of living Globalization

of foreign banks Unorganized money lending market Threat of nationalization