BANKS IN INDIA:

In India the banks are being segregated in different groups. Each group has their own benefits
and limitations in operating in India. Each has their own dedicated target market. Few of them
only work in rural sector while others in both rural as well as urban. Many even are only catering
in cities. Some are of Indian origin and some are foreign players. All these details and many
more are discussed over here. The banks and its relation with the customers, their mode of
operation, the names of banks under different groups and other such useful information are
talked about. One more section has been taken note of is the upcoming foreign banks in India.
The RBI has shown certain interest to involve more of foreign banks than the existing one
recently. This step has paved a way for few more foreign banks to start business in
RESERVE BANK OF INDIA:
The central bank of the country is the Reserve Bank of India (RBI). It was established in April
1935 with a share capital of Rs. 5 crores on the basis of their commendations of the Hilton Young
Commission. The share capital was divided into shares of Rs. 100 each fully paid which was
entirely owned by private shareholders in the beginning. The Government held shares of nominal
value of Rs. 2, 20,000.Reserve Bank of India was nationalized in the year 1949. The general
superintendence and direction of the Bank is entrusted to Central Board of Directors of 20
members, the Governor and four Deputy Governors, one Government official from the Ministry
of Finance, ten nominated Directors by the Government to give representation to important
elements in the economic life of the country, and four nominated Directors by the Central
Government to represent the four local Boards with the headquarters at Mumbai, Kolkata,
Chennai and New Delhi. Local Boards consist of five members each Central Government
appointed for a term of four years to represent territorial and economic interests and the interests
of co-operative and indigenous banks. The Reserve Bank of India Act, 1934 was commenced on
April 1, 1935. The Act, 1934 (II of 1934) provides the statutory basis of the functioning of the
Bank. The Bank was constituted for the need of following:
To regulate the issue of banknotes
To maintain reserves with a view to securing monetary stability and
To operate the credit and currency system of the country to its advantage.
Functions of Reserve Bank of India
The Reserve Bank of India Act of 1934 entrust all the important functions of a central bank the
Reserve Bank of India.
Bank of Issue
Under Section 22 of the Reserve Bank of India Act, the Bank has the sole right to issue bank
notes of all denominations. The distribution of one rupee notes and coins and small coins all over
the country is undertaken by the Reserve Bank as agent of the Government.

Classification of RBIs functions

The monetary functions also known as the central banking functions of the RBI are related to
control and regulation of money and credit, i.e., issue of currency, control of bank credit, control
of foreign exchange operations, banker to the Government and to the money market. Monetary
functions of the RBI are significant as they control and regulate the volume of money and credit
in the country. Equally important, however, are the non-monetary functions of the RBI in the
context of India's economic backwardness. The supervisory function of the RBI may be regarded
as a non-monetary function (though many consider this a monetary function).The promotion of
sound banking in India is an important goal of the RBI, the RBI has been given wide and drastic
powers, under the Banking Regulation Act of 1949 these powers relate to licensing of banks,
branch expansion, liquidity of their assets, management and methods of working, inspection,
amalgamation, reconstruction and liquidation. Under the RBI's supervision and inspection, the
working of banks has greatly improved. Commercial banks have developed into financially and
operationally sound

Financial Services Industry Training The Business of Banking Saunders Learning Group,
LLC Saunders Learning Group, LLC, Andover, KS
Module Objectives Upon completion of this module,
1. Retail Banking Products and Services
2. Business Banking Products and Services
3. Investment Banking Products and Services
4. Wealth Management Products and Services
5. Mutual Fund companies
6. Insurance companies
7. Credit Services
8. Tax service providers
9. Credit rating agencies
10. Credit Bureaus Saunders Learning Group, LLC, Andover, KS1
Retail and Business Banking Overview Retail and Business Banking Retail Banking Business
Banking (AKA Corporate or Commercial Banking)Provides consumers with a wide range of
Provides banking services, cash management and deposit, savings, and loan products, loans to
small businesses and corporations. Retail or Mass Market Small Business Affluent or Mid
Market Mid-Size Corporate Private or High Net Worth Corporate Wealth Management
Saunders Learning Group, LLC, Andover, KS 3
Retail Banking Function Provides consumers with a wide range of banking products and
services designed to meet the needs of a varied customer Acceptance of deposits in to checking
and savings accounts base. Issues credit cards andTransaction processing for deposit
accounts Arranges safeprocesses merchant transactions, payment processing Sells certificates
of deposit,deposit boxes for customers Example Provides for transfer of funds retirement

accounts Activities Arranges aProvides banking via ATM machines and mobile devices May
also process applications for mortgagevariety of personal loans loans Citibank, Bank of
America, JPMorgan Chase, Wells Fargo, US Bank Example Also a variety of regional and local
banks. Companies Saunders Learning Group, LLC, Andover, KS Slide 7
Retail Banking Products and Services Cash Management Checking & Savings, ATM cards
Online Banking Mobile Banking Payment Processing Loan Products Home, Auto, Personal,
Credit Cards Saunders Learning Group, LLC, Andover, KS 8
Types of Bank Accounts:
1. Checking accounts are a deposit account for the purpose of securely providing access to funds
on demand, via checks, ATM transactions, and transfers of funds. Also known as demand deposit
accounts (DDA).
2. A deposit account is a savings account, money market or time deposit at a bank that allows
money to be deposited and withdrawn by the account owner (s). Also referred to a Savings
Deposit Account (SDA).
3. A money market account is a deposit account with a higher rate of interest paid for higher
balances. In the United States it is subject to regulations that limit the frequency of transactions.
4. Time Deposit Account (TDA) is a deposit account that cannot be withdrawn for a fixed period
of time, unless an early withdraw fee is paid. In most cases the longer the term of deposit the
better the yield on the deposit. Saunders Learning Group, LLC, Andover, KS 9
16. Virtual Banks:
Virtual banks are banks without bricks; they exist entirely on the Internet. Virtual banks pass the
money they save on overhead along to you in the form of higher yields, lower fees and more
generous account thresholds. Advantages of online banking Disadvantages of online typically
charge the Convenience: available 24 hours a day. Banking Ubiquity: log on from anywhere.
Another same surcharge if you used Transaction speed: Online banks execute and banks
automated teller. Many virtual banks wont accept deposits via ATM. confirm transactions at
Start-up may take time: In order to register for or quicker than ATM youre processing speeds.
Banks online program, you will probably have to Efficiency: You can access and manage all
accounts, provide ID and sign Learning curve: Banking sites up via the mail. From one secure
site. Effectiveness: Many online banking sites now offer can be difficult to Bank site changes:
navigate at first. Sophisticated tools, including: account aggregation periodically upgrade their
Even the largest banks stock quotes, rate alerts new features in online programs, adding Most
are also portfolio managing programs unfamiliar places. Compatible with money managing
programs

Balance Sheet of State Bank of India

Capital and Liabilities:

Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Net Worth
Deposits
Borrowings
Total Debt
Other Liabilities & Provisions
Total Liabilities

Assets
Cash & Balances with RBI
Balance with Banks, Money at Call
Advances
Investments
Gross Block
Revaluation Reserves
Accumulated Depreciation
Net Block
Capital Work In Progress
Other Assets
Total Assets

Contingent Liabilities

------------------- in Rs. Cr. ------------------Mar '15

Mar '14
Mar '13
Mar '12
12 mths

12 mths

12 mths

12 mths

746.57
746.57
0.00
0.00
127,691.65
128,438.22
1,576,793.2
4
205,150.29
1,781,943.5
3
137,698.05
2,048,079.8
0
Mar '15

746.57
746.57
0.00
0.00
117,535.68
118,282.25

684.03
684.03
0.00
0.00
98,199.65
98,883.68

671.04
671.04
0.00
0.00
83,280.16
83,951.20

Mar '14

Mar '13

Mar '12

12 mths

12 mths

12 mths

12 mths

115,883.84
58,977.46
1,300,026.3
9
495,027.40
9,329.16
0.00
0.00
9,329.16
0.00
68,835.55
2,048,079.8
0

84,955.66
47,593.97

65,830.41
48,989.75

54,075.94
43,087.23

1,394,408.51 1,202,739.57 1,043,647.36

183,130.88

169,182.71

127,005.57

1,577,539.39 1,371,922.28 1,170,652.93

96,412.96

95,455.07

80,915.09

1,792,234.60 1,566,261.03 1,335,519.22

1,209,828.72 1,045,616.55 867,578.89

398,308.19
8,002.16
0.00
0.00
8,002.16
0.00
43,545.90

350,927.27
6,595.71
0.00
0.00
6,595.71
409.31
47,892.03

312,197.61
5,133.87
0.00
0.00
5,133.87
332.68
53,113.02

1,792,234.60 1,566,261.03 1,335,519.24

1,093,422.5
1,091,358.37 993,018.45
1

899,565.18

Bills for collection

Book Value (Rs)

0.00
172.04

0.00
1,584.34

0.00
1,445.60

0.00
1,251.05