2_copy of evolution of banking

8/12/2019 2_Copy of Evolution of Banking

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Evolut ion o f banking

We either step forward into growth or backinto safety

Maslow


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Origin of Banking

1. Babylonians developed banking systems during2000 B C

2. Jews of Lombardy transacted on bancus orbanque

3.

Credit delivery were prevalent in ancient Greeceand Rome

4. References are found in the old sanskrit texts ofManu about Deposits ,Pledges ,loans etc

5. Bank of Hindostan, set up in 1770, was the first

Indian Bank6. The Carnatic Bank - 1788


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Evolution of Banking In India

Presidency Banks

Bank of Bengal -1806

Bank of Bombay -1840

Bank of Madras -1843

Imperial Bank of India _1920

Reserve Bank Of India _ 1935

State Bank of India _ 1955


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Evolution of Banking in India

Banking regulation act 1949

Social control of Banks 1968

Nationalisation of 14 major banks 19thJuly 1969

Nationalisation of 6 Banks 15thApril 1980

Setting up of Regional Rural banks (RRBs) 1975


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Statutes Governing Banks

Reserve Bank Of India Act 1934

Banking Regulation Act 1949

Banking companies (acquisition and transfer Of Undertaking) Act1970 / 1980

Negotiable Instrument Act 1881

Negotiable Instruments (Amendment and Misc Provisions)Act 2002

Limitation Act 1963


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Statutes Applied To Banking

Indian Contract Act 1872

Indian Partnership Act 1932

Indian Companies Act 1956

Bankers Book Evidence Act 1891

Indian Registration Act 1908


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Private Sector Banks

Post recommendation of the Narasimhan committee onliberalisation, set up in 1991

First Bank, IndusInd Bank, Apr 16, 1994

Global Trust Bank(30 Oct 1994), amalgamated withOriental Bank Of Commerce, UTI Bank (now Axis Bank),ICICI Bank, IDBI Bank

Registered as Public Ltd Companies, initial paid upcapital Rs 200 crores


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Banking Structure

Scheduled Commercial Banks

Public Sector Banks

Private Sector Banks (old/new generation)

Foreign Banks

Co-operative Banks


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Categories of Banks

Branch Banking

Unit Banking

Investment Banking

Universal banking

Merchant Banking

Virtual Banking


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Functions of the Central Bank

Monopoly of note issue

Banker to the government

Bankers Banker and lender of the last resort

Monetary Control and managing public debt

Supervision of Banks and financial Institutions


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Functions of the Central Bank

Management of Foreign Exchange reserves and

exchange control authority

Managing public debt

Discretionary control of refinance and rediscounting


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Monetary control by RBI

Purpose

Controlling inflation

Encouraging growth

Financial stability


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Monetary control by RBI

Cash Reserve Ratio (CRR)

Statutory Reserve Ratio (SLR)

Open Market Operations

Repo Rate

Reverse Repo Rate


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Exercises

State Bank of India : Head office in Mumbai and have14000 branches spread throughout the country

Pune peoples co-operative bank, Pune, the only branch

of the bank has a deposit base of Rs 200 crores

Goldman Sach arranges a foreign currency syndicated

loan of USD 500 million in acquisition of a British steelco, by Tata Steel.


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Exercises

Standard Chartered Bank, New Delhi accepts foreign

currency deposits, arranges sydicated loans and

external commercial borrowings to corporates, provides

working capital finance to industries, sells various

insurance products of Max Newyork, sells the balanced

fund of stanchart mutual fund etc.


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Exercises

Indbank merchant banking services, Chennai manages

the share issue of Tamilnadu cements of Rs 120 crores,

lead managers.

HDFC Bank provides faster transfer of funds of Rs 5

lakhs from Pune to Jodhpur, through RTGS ( real time

gross settlement system ).

2_copy of evolution of banking

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