Prepared by Divya Sharma 15412303910

Indias banking sector is booming at a great pace.

Indian banking sector has 6th rank in all over the world.
Most of the banks paid their focus on the retail

sector and provide internet banking, phone banking and mobile banking services to their customers and have cornered one of the largest segments of the India's banking sector by targeting the India's growing middle income class.

Cont.
SBI has 6500+ ATMs all over the country. ICICI bank has 3500+ ATMs all over the country. RBI had printed 9,39,948 lakh crore notes till 6th november

2011.
Acc. To business magazine survey, the no. of ATMs grew

28% yearly.
Inspite of it India has 23+ ATMs per million people.

Transactions done through ATMs is around 70,000 crore in

a year.

BANK????
A bank is a financial institution whose primary

activity is to act as payment agent for customers and to borrow and lend money.
An institution where one can place and borrow money and take care of financial affairs

Functions of Banks
Accepting deposits from public/others.

Lending money to public.

Transferring money from one place to another. Acting as trustees.

Keeping valuables in safe custody.

Types of Banks
Public sector banks Private sector banks Co-operative banks

Development banks/financial institutions

Public sector Banks in India

Central bank of India Corporation bank Dena bank Bank of India Indian overseas bank Oriental bank of commerce

Punjab & sind bank

Private sector Banks

ICICI bank IDBI bank Axis bank

Foreign banks operating in India HSBC bank Citi bank ABN-AMRO bank Standard chartered bank

Co-operative Banks
The Co operative banks in India started functioning almost

100years ago. The Cooperative bank is an important constituent of the Indian Financial System. They are setup to provide easy loans to farmers or other persons to set up his business. They are non profitable banks. Cooperative banks in India finance rural areas under
Farming Cattle Milk Hatchery Personal finance

Some example of co-operative banks in India IDBI BANK(INDUSTRIAL DEVELOPMENT BANK OF INDIA) IFCI BANK(INDUSTRIAL FINANCE COOPERATION OF INDIA)

Development Banks/financial institutions

These banks are mainly used for developing industries and countries. Some examples are: Federal bank HDFC bank HSBC ICICI bank Indian overseas bank ING Vysya bank

A glimpse of Banking sector

Phase 1 Early phase from 1786 to 1969 of Indian Banks
GENERAL BANK OF INDIA 1786(FIRST BANK)

RESERVE BANK OF INDIA 1935

SLOW GROWTH AND PERIODIC FAILURE THE BANKING COMPANY ACT 1949 PEOPLE Mostly SAVE IN POSTAL DEPOSITSS

Phase 2
Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms
Nationalization of imperial bank of India and

formation of state bank of India(1955)

Nationalization of SBI and Subsidiaries(1960) Insurance cover extended to deposits Creation of credit guarantee corporation

Creation of regional rural banks

Phase 3
New phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991
Entry of Foreign Banks Phone Banking and Net-Banking

Shelter from external macroeconomic shock

System become more convenient and swift

Major reforms initiatives

Some of the major reform initiatives in the last decade that have changed the face of the Indian banking are: Interest Rate Deregulation-Interest Government equity in banks New private sector banks New areas have been opened up for bank financing

Effect of New Technologies on Banks

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.

Guidelines for FDI in Banking

In the private banking sector of India, FDI is allowed

up to a maximum limit of 74 % of the paid-up capital of the bank. Foreign Direct Investment and Portfolio Investment in the public or nationalized banks in India are subjected to a limit of 20 % in totality. This ceiling is also applicable to the investments in the State Bank of India and its associate banks. FDI limits in the banking sector of India were increased with the aim to bring in more FDI inflows in the country along with the incorporation of advanced technology and management practices.

Problems faced by Indian Banking sector

FDI in Indian banking sector resolves the following

problems often faced by various banks in the country:

Inefficiency in management Instability in financial matters Innovativeness in financial products or schemes Technical developments happening across various

foreign markets Non-performing areas or properties Poor marketing strategies Changing financial market conditions

Benefits of FDI in Banking Sector in India

Transfer of technology from overseas countries to the

domestic market
Ensure better and improved risk management in the

banking sector
Assures better capitalization Offers financial stability in the banking sector in India