Presented by:- presented to:- RUCHI SHARMA Mrs. ALKA

SWAMI

Contemporary issues in Banking

BANKING SECTOR IN INDIA

MONEY

Definition-Any medium of exchange that has recognized value.

Functions of Money-Primary Function Secondary Function

Money stock in India

Definition –An organization that makes loans and keep customers money for them.

Origin Of Banking- Italy in 1157

Banking In India- Bank Of Hindustan-1770

What is Banking?

Receiving Deposit from the public. Making loans and advances. Creation and destruction of money. Issuing of bank draft , travelers cheque .

Importance of a commercial Bank Capital formation. Implementation of effective Monetary policy. Act as the link between organized & unorganized sector.

•Functions of a commercial Bank

Reserve Bank Of India-Nationalized in 1949

Banking Regulation Act - 1949

Different Stages Of Development Of Indian Banking

Chain Banking Mixed Banking Deposit Banking Group Banking Rural Banking Merchant Banking Industrial Banking Correspondent Bank Saving Banking Unit Banking Agriculture Banking Branch Banking Exchange Banking

Types Of Banking:-

Public sector

S.b.i Nationalized RRBs

Commercial Banking System

Private sector

scheduled

INDIAN BANKS

Foreign Banks

Non-scheduled

It was established in 1935 on the recommendation of the Hilton Young Commission.

It was Nationalised in 1949.

It is the apex Bank in India , with headquarters situated in Mumbai.

RESERVE BANK OF INDIA (R.B.I)

FUNCTIONS OF R.B.I

Issue of currency.

Banker to Government.

Banker’s Bank Mr. D. Subbarao

Custodian of Foreign Exchange Reserve.

Controller of credit.

State Bank Of India State Bank Of Bikaner n Jaipur State Bank Of Indore (merged in 2010) State Bank Of Travancore State Bank Of Patiala State Bank Of Hyderabad State Bank Of Mysore State Bank Of Saurashtra (merged in 08) Mr. O.P.

Bhatt

Chairman

S.B.I

Established in 1963 by an Act of Indian Parliament

In 1982 it came to be known as NABARD

Bank for agriculture and rural development.

Mr. Sarangi

chairman

NABARD

The co-operative banking structure in India is divided into following main 5 categories :

1. Primary Urban Co-op Banks:

2. 2. Primary Agricultural Credit Societies:

3. District Central Co-op Banks:

4, State Co-operative Banks:

5. Land Development Banks:

COOPERATIVE BANKS

IntroductionGrameen Bank (GB) has reversed conventional banking practice by removing the need for collateral and created a banking system based on mutual trust, accountability, participation and creativity. GB provides credit to the poorest of the poor in rural Bangladesh..

History:The origin of Grameen Bank can be traced back to 1976 by Prof. Muhammad Yunus.

Grameen Bank

objectives

Financial sector reforms

Credit risk management

BANKING SECTOR REFORMS

Annual Net Profit   Public Sector Banks

Year/Bank 2006 2007 2008 2009 2010

SBI 4,406.67 4,541.31 6,729.12 9,121.23 9,166.05

PNB 1,439.31 1,540.08 2,048.76 3,090.88 3,905.36

BOB 1,050.07 1,026.46 1,435.52 2,227.20 3,058.33

           

           

  Private Sector BanksYear/Bank 2006 2007 2008 2009 2010

ICICI 2,540.07 3,110.22 4,157.73 3,758.13 4,024.98

HDFC Bank 1,115.94 1,382.54 1,590.18 2,244.94 2,948.70

Axis Bank 485.08 659.03 1,071.03 1,815.36 2,514.53

INDIAN MONETARY POLICY

QUANTITATIVE

BANK RATE

CRRSLR

QUALITATIVE

MARGIN REOUIRME

NT

DIRECT ACTION

ATM ’s

MOBILE BANKING

SMS BANKING

NET BANKING

EASY BANKING

Regional Imbalance

Bad and doubtful debts

Profit ability ratio has not improved much

Lack of expertise.

Short Comings Of Commercial Bank

S.B.I And Associates

Private Banks

Scheduled Urban Co operative Banks

Indian Bank Abroad

Foreign Bank

Loan Companies

LIST OF BANKS IN INDIA

Bank takeovers- ICICI Bank has recently take

Over Rajasthan Bank

Bank Mergers - State Bank of India proposes to merge its five remaining subsidiaries with itself over the next 12-18 months

Budget-2011 Impact - banking licenses to Indian banks to ensure the expansion of banking sector in size and turnover

CURRENT ISSUES IN BANKING SECTOR

S.B.I and BSNL ties up - SBI tied up with Airtel and BSNL to launch mobile money transfer in India.

State Bank of India has tied up with SREI Sahaj, a subsidiary of Srei Infrastructure that operates several broadband enabled Common Service Centers in India, in the states of West Bengal, Bihar, Assam, Uttar Pradesh, Orissa and Tamil Nadu

CURRENT ISSUE IN BANKING SECTOR

Loans

Jobs

Entrepreneurship opportunities

Benefits For M.B.A’S

THANK YOU !!!!

ANY? ? ? ? ? ? ? ? ? ? ? ? QURIES