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à A banker or bank is a financial institution
whose primary activity is to act as a payment
agent for customers and to borrow and lend
money.
à An institution where one can place and
borrow money and take care of financial affairs;
A branch office of such an institution.
à The first modern bank was founded in Italy in
Genoa in 1406, its name was (Bank of St.
George).
  
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àAccepting Deposits from public/others

(Deposits).
àLending money to public (Loans).
àTransferring money from one place to
another (Remittances).
àActing as trustees.
àKeeping valuables in safe custody.
àGovernment business.
 
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Banks also act as trustees for various purposes. For example,

whenever a company wishes to issue secured DEBENTURES, it
has to appoint a financial intermediary as trustee who takes
charge of the security for the debenture and looks after the
interests of the debenture holders. Such entity necessarily have
to have expertise in financial matters and also be of sufficient
standing in the market/society to generate confidence in the
minds of potential subscribers to the debenture. While Banks are
the natural choice for the customers, Banks must possess the
following to be effective and retain that:
^A track record of sufficient length.
^Facilities for safe keeping.
^Legal skills to take necessary steps for the trusteeship.
trusteeship.
 ‘


It is define as certicate of agreements of

loans which is given under the companies
stemps and ensure fixed returns on the basis
of interest rate and the principal amount
whenever debenture mature.
TYPES OF DEBENTURES-
DEBENTURES-
1.NCD
2.PCD
3.OCD
4.FCD


 ‘ 

àPublic sector Banks

àPrivate sector Banks

àCo
Co--operative Banks

àDevelopment Bank/Financial institutions

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àCentral Bank of India
àCorporation Bank
àDena Bank
àBank of India
àIndian Overseas Bank
àOriental Bank of Commerce
àPunjab & Sind Bank
 
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àOld generation private banks

àNew generation private banks

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àForeign banks operating in India

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àUpcoming foreign bank in India

^ RBS(ROYAL BANK OF SCOTLAND GROUP)

^ INDUSTRIAL AND COMMERCIAL BANK OF
CHINA

àScheduled co-
co-operative banks

àNon
Non--scheduled bank
 
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These banks are mainly used for devoloping
industries and countries
Some Examples-
Examples-
^Federal Bank
^HDFC Bank
^HSBC
^ICICI
^Bank Indian Overseas Bank
^ING Vysya Bank
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à Become operational on April 1,1935

à Nationalized in the Year 1949.


 

 

à Regulate the issue of banknote.

à Maintain reserves with a view to securing monetary
stability.
à To operate the credit and currency system of the country to
its advantage.
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The fuctions are classified into three heads:-

heads:-

àTraditional functions

à Promotional functions

àSupervisory functions



 
àMonopoly of currency notes issue
àBanker to the Government (both the central
and state)
àFight against economic crisis and ensures
stability of Indian economy.
àController of ForEx and credit
àMaintaining the external value of domestic
currency
 
 
àExtension of the facilities for the 


 
àInnovating the new banking business
transactions.
àExtension of the facilities for the provision
of the agricultural credit through NABARD

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àGranting licence to Banks.

àPeriodical review of the work of the

 
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àControl the non-
non-banking finance
corporation.
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Early phase from 1786 to 1969 of Indian Banks
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Nationalization of Indian Banks and up to 1991
prior to Indian banking sector Reforms
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New phase of Indian Banking System with the
advent of Indian Financial & Banking Sector
Reforms after 1991
 
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à GENERAL BANK OF INDIA 1786(FIRST BANK)

à RESERVE BANK OF INDIA 1935

à SLOW GROWTH AND PERIODIC FAILURE

à THE BANKING COMPANY ACT 1949

à PEOPLE Mostly SAVE IN POSTAL DEPOSITS

 



à Nationalization of imperial bank of India and
formation of sate bank of India(1955)

à Nationalization of SBI and Subsidiaries(1960)

à Insurance cover extended to deposits

à Creation of credit guarantee corporation

à Creation of regional rural banks

 
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à Entry of Foreign Banks

à Phone Banking and Net-

Net-Banking

à Shelter from external macroeconomic shock

à System become more convenient and swift

 

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à Lack of product expertise
Traditionally focused on limited range of products
Primarily for corporate clients
Need for acquiring skills in
Retail, structured finance
à Lack of distribution expertise
Reliance on branch channel and human intervention
Relatively high unit cost of delivery given small
transaction sizes
à Limited use of technology
Across both customer-
customer-facing and
internal functions
 Continued
àInefficient capital allocation

àCompetition in market
Post office
Insurance
Financial Institution
Foreign Banks
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àTechnological Advancement

àRural Banking

àImproving Risk Management

àDeveloping a flexible model for rapid

scale--up at optimal cost
scale
 FACTS AND FIGURES
^ Indian banking sector has 6th rank in all over the world.
^ 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 6TH Nov
2008.
^ SBI provides the facility and it is tie with 9200+ banks to
use their ATMs.
^ Acc. To business magazine survey the no. of ATMs grew
28% yearly.
^ Inspite of it India has 23+ ATMs per million people,
China has 55+ ATMs and South Korea has 1600+ ATMs
per million people.
^ Transaction done through ATMs is around 70,000 crore
in a year.
ICICI bank has largest no. branches in foreign also.
, „