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Presented by:-Rakesh Babu-122

Rishav Dugar-128Rishu Narsariya-130

Shinu Simon-147Shruti Treasa-150

Sneha Bhudwar-158


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General Bank of India 1stbank of India(1786)

Reserve Bank of India -was established on 1 April 1935during the British Raj in accordance with the provisions ofthe Reserve Bank of India Act, 1934

Slow growth and periodic failure

In 1949, the Banking Regulation Act was enacted whichempowered the Reserve Bank of India (RBI) "to regulate,control, and inspect the banks in India.


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1955:-

Nationalizationof Imperial Bank of India andformation of State Bank of India.

1960:-

Nationalization of SBI and subsidiaries

1962:-

Deposit Insurance corporation was establishedwith aim to provide insurance cover to depositors,

thereby protecting deposits of common man.


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1969:-

Transitory period- social banking andnationalization(14 banks)


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The Government of India First 14 Nationalised banks:1. Bank of India2. Union Bank of India3. Bank of Baroda4. Bank of Maharashtra5. Punjab National Bank6. Indian Bank7. Indian Overseas Bank8. Central Bank of India9. Canara Bank10. Syndicate Bank

11. United Commercial Bank12. Allahabad Bank13. United Bank of India14. Dena Bank


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Creation of credit guarantee Corporation

Creation of regional Rural Banks(1975):-The Govt of India set up Regional Rural Banks(RRBs) onOctober 2, 1975.

The banks provide credit to the weaker sections of the rural

areas-small farmers, agricultural labourers, artisans andsmall entrepreneurs.

Initially, five RRBs were set up on October 2,1975.

Capital share -50% by the central government, 15% by the

state government and 35% by the scheduled bank.

Total authorized capital- 1 crore which has since beenraised to 5 Crore.


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1980: Nationalisationof seven banks with deposits over 200

crores.

1990 :- the nationalised banks grew at a pace of around 4%,

closer to the average growth rate of the Indianeconomy.


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1991 :- the Indian rupee was devalued.

The currency lost 18% relative to the us dollar.

Narsimahmam Committeeadvised restructuring thefinancial sector by a temporal reduced reserve ratio as well

as the statutory liquidity ratio.


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Licensing a small number of private banks(NewGeneration tech-savvy banks) . eg :axis bank, GlobalTrust Bank.

This turning point should reinforce the market andwas often called neo liberal.

all Foreign Direct Investment at that time was 10%(at present it has gone up to 74% with somerestrictions).


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System become more convenient and swift.

The country is flooded with foreign banks and theirATM stations. Efforts are being put to give asatisfactory service to customer. eg online banking.

Time is given more importance than money.

This move, along with the rapid growth in theeconomy of India , revitalizedthe banking sector inIndia


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Phase ISlow growth rate

Phase II

nationalization of 14 indian banks

Phase III

the trend continues---7 more banks nationalizedno such significant changes with a constant growthrate


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Phase IV

New phase of Indian Banking System with the adventof Indian Financial & Banking Sector Reforms after1991.


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Focus only on corporate clients

Lack of skill expertise in retail and structured finance

Lack of distribution system

Limited use of technology Inefficient capital allocation

Competition in market


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FDI in banking sector can solve various problems ofthe overall banking sector. Such as

a) Innovative Financial Products.

b) Technical Developments in the Foreign Markets

c) Problem of Inefficient Management

d) Non-performing Assets

e) Financial Instability

f) Poor Capitalizationg) Changing Financial Market Conditions


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Technological Advancement

Improving Risk Management

Rural Banking

Developing a flexible model for rapid scale--up atoptimal cost.


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Indian banking sector has 6thrank in all over the worldrank.

SBI has 6500+ ATMs all over the country.

ICICI bank has 3500+ ATMs all over the country. RBI had printed 6,39,948 lakhs crore notes till 6THNov

2008.

SBI provides the facility and it is tie with 9200+ banks

to use their ATM. Transaction done through ATMs is around 70,000

crore in a year


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Thank you!!

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