1. Prepared by
Nilesh Sen

3. A Glimpse of Banking sector
Phase-1
Early phase from 1786 to 1969 of Indian Banks
Phase-2
 Nationalization of Indian Banks and up to 1991 prior
to Indian banking sector Reforms
Phase-3
New phase of Indian Banking System with the advent
of Indian Financial & Banking Sector Reforms after
1991

4. Phase-1
GENERAL BANK OF INDIA 1786(FIRST BANK)
 RESERVE BANK OF INDIA 1935
Slow growth and periodic failure
THE BANKING COMPANYACT 1949
People mostly save in postal deposits.

5. Phase-2
Nationalization of imperial bank of India and
formation of sate 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

6. Phase-3
Entry of Foreign Banks
Phone Banking and Net-Banking
Shelter from external macroeconomic shock
System become more convenient and swift

7. WHAT IS BANK?
 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.
 An institution where one can place and borrow money and take
care of financial affairs; A branch office of such an institution.
 The first modern bank was founded in Italy in Genoa in
1406, its name was (Bank of St. George).

8. FUNCTIONS OF BANKSAccepting Deposits from public/others (Deposits).
Lending money to public (Loans).
Transferring money from one place to another (Remittances).
Acting as trustees.
Keeping valuables in safe custody.
Government business.

9. TYPES OF BANKS
Public sector Banks
Private sector Banks
Co-operative Banks
Development Bank/Financial institutions

10. Public sector Banks
Some 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

11. Private sectors Banks
New generation private banks
 ICICI Bank
• IDBI Bank
• Axis bank
Foreign banks operating in India
• HSBC BANK
• CITI BANK
• ABN-AMRO BANK
• STANDARD CHARTED BANK

12. CO-OPERATIVE BANKSThe Co operative banks in India started functioning almost 100
years 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 buisness.
They are non profitable banks.
Cooperative banks in India finance rural areas under:
Farming
Milk
Personal finance
Some example of co-operative banks in India-
IDBI BANK(INDUSTRIAL DEVELOPMENT BANK OF INDIA)
IFCI BANK(INDUSTRIAL FINANCE COOPERATION OF
INDIA)
APEX BANK

13. Institutions
These banks are mainly used for devoloping industries and
countries
Some Examples-
Federal Bank
HDFC Bank
HSBC
ICICI
Bank Indian Overseas Bank
ING Vysya Bank

14.  Reserve Bank of India

15. The Reserve Bank of India
History:-
 Become operational on April 1,1935
 Nationalized in the Year 1949.
Major objectives:-
 Regulate the issue of banknote.
 Maintain reserves with a view to securing monetary stability.
 To operate the credit and currency system of the country to its
advantage.

16. Functions of RBI
The fuctions are classified into three heads:-
Traditional functions
 Promotional functions
Supervisory functions

17. Traditional functions
Monopoly of currency notes issue
Banker to the Government (both the central and state)
Fight against economic crisis and ensures stability of
Indian economy.
Controller of ForEx and credit
Maintaining the external value of domestic currency

18. Promotional functions
Extension of the facilities for the small scale industries
Innovating the new banking business transactions.
Extension of the facilities for the provision of the
agricultural credit through NABARD

19. Supervisory functions
Granting licence to Banks.
Periodical review of the work of the commercial banks.
Control the non-banking finance corporation.

20. HOW IT CONTROLS BANK &
ECONOMY
TOOLS:-
 CRR( CASH RESERVE RATIO): 5.5%
 REPO RATES(RR):7.5%
 REVERSE REPO RATE(RRR): 6.0%
 STATUTORY LIQUIDTY RATIO (SLR):24%
 BANK RATE: 6.0%