STUDY OF

GROWTH & DEVELOPMENT OF

INDIAN BANKING SECTOR IN LAST 10 YEARS

Bachelor of commerce
Banking & Insurance
Semester v
Submitted
In partial Fulfilment of requirement for the
Award of Degree of Bachelor of Commerce Banking
& Insurance
By
Utekar Rohit Chandrakant
Seat No:
T.Z.A.SHIKSHAN PRASARAK MANDALS
PRAGATI COLLEGE OF ARTS & COMMERCE
Dombivli (East), Maharashtra-421 201

PRAGATI COLLEGE OF ARTS &COMMERECE

DOMBIVLI (E)

CERTFICATE
(2015-2016)
This is to certify that Mr. ROHIT CHANDRAKANT UTEKAR, Seat No:
of B.com Banking & Insurance Semester VI (2015-16) has successfully
completed the project on, STUDY OF GROWTH AND DEVELOPMENT OF
INDIAN BANKING SECTOR IN LAST 10 YEARS under the guidance of
Prof.Swati Pusalkar.

(Prof. Swati Pusalkar)

Course Coordinator

(Prof. Swati Pusalkar.)

(Dr. A.P.Mahajan)
Principal

DECLARATION
I am, ROHIT CHNADRAKANT UTEKAR , the student of B.COM BANKING
& INSURANCE SEMESTER V (2015-16) declare that I have completed the
project on STUDY OF GROWTH AND DEVELOPMENT OF INDIAN
BANKING SECTOR IN LAST 10 YEARS

The information submitted is true and original to the best of my knowledge.

Signature of student
Rohit Utekar
Seat No. :

ACKNOWLEDGEMENT
Apart from the efforts of me, the success of my project is totally depends on
encouragement and guidelines of many others. I take this opportunity to express
my view to the people who have been thankful in the success of completion of this
project.
I would like to show my greatest appreciation to my project guide as well as
course coordinator Prof .Swati Pusalkar without their encouragement, this project
would not have materialized.
The guidance and support received from all the persons who contributed was very
important for the success of the project.
Finally, I take this opportunity to extend my deep appreciation to my family and
friends for all they meant to me during the extremely important times of
completion of this project.

Student signature
Rohit chandrakant utekar

INDEX
SR

TOPICS

NO.
1.

EXECUTIVE SUMMERY

2.

OBJECTIVE

3.

RESEARCH METHODOLOGY & LIMITATIONS

5.

CHAPTER-I
INTRODUCATION OF BANKING

6.

CHAPTER-II
GROWTH AND DEVELOPMENT OF BANKS

7.

CHAPTER-III
FINDINGS

8.

CONCLUSION

9.

BIBLIOGRAPHY

10.

WEBLIOGRAPHY

EXECUTIVE SUMMAMARY

The topic of this project is useful to know how banks are

tremendously performance. If we want to develop our country,
then increases in their there must be a proper financial status of
our country& therefore there sector. This is helpful to
development in banking must be systematic developments in
banks by using new creative understand the overall policies and
innovation. The creation and development of new forms of
distribution in the banking sector is both necessary a great
business because it leads to improvements in institutions
opportunity for financial measured in terms of income costs,
productivity performance overall and quality of service. The
bank which used the right technology to increase and thereby
gain supply timely information will see productivity a
competitive edge. To competitive for the Indian Banks to
observe environment. Not only the latest technology and
modify it to suit their banks need greatly enhanced use of
technology to the customer friendly. Existing service and
business, they also need efficient and competitive technology for
providing never products and never form of services in a Today,
the private environment. Dynamic and globalized increasingly
Indian banks have brought a fresh perspective to bear on the
situation. They already overshadow foreign banks on the
situation.

OBJECTIVES OF STUDY
To study about the current scenario of banks.
To study the technological developments and innovations in banks in last 10
YEARS in banking Sector.
To know growth and Indian banking sector

RESEARCH MRTHODOLOGY

Secondary Data:My secondary data was collected from the websites & publish Data, report,
circulars, annual report & Articles.

LIMITATIONS
I.

There is no scope to collect primary data.

II.

Duration for project is limited. i.e. 2 months

III.

Updated data is unavailable

CHAPTER I

1.1
1.2
1.3
1.4
1.5
1.6
1.7

Introduction
General information of banking
History of bank
Banking sector in India
Importance of banking in Indian economy
Organizational structure
Product of banking sector

CHAPTER 1
INTRODUCTION OF INSURANCE

Insurance is the equitable transfer of the risk of a loss, from one entity to
another in exchange for payment. It is a form of risk management primarily used
to hedge against the risk of a contingent, uncertain loss.

According to study texts of The Chartered Insurance Institute, there are the
following categories of risk:
1.

Financial risks which means that the risk must have financial
measurement.

2.

Pure risks which means that the risk must be real and not
related to gambling

3.

Particular risks which means that these risks are not

widespread in their effect, for example such as earthquake risk for the
region prone to it.

It is commonly accepted that only financial, pure and particular risks are insurable.
An insurer, or insurance carrier, is a company selling the insurance; the insured, or
policyholder, is the person or entity buying the insurance policy. The amount
of money to be charged for a certain amount of insurance coverage is called the
premium. Risk management, the practice of appraising and controlling risk, has
evolved as a discrete field of study and practice.
The transaction involves the insured assuming a guaranteed and known relatively
small loss in the form of payment to the insurer in exchange for the insurer's
promise to compensate (indemnify) the insured in the case of a financial (personal)
loss. The insured receives a contract, called the insurance policy, which details the
conditions and circumstances under which the insured will be financially
compensated.

DEFINITION OF 'INSURANCE'
1. A contract (policy) in which an individual or entity receives financial
protection or reimbursement against losses from an insurance company. The
company pools clients' risks to make payments more affordable for the
insured.
2. When shopping around for an insurance policy, look for the best priced
package that is right for you - prices can vary from one insurance company
to the next. And make sure you know what you want. Some individuals, for
example, prefer 24-hour claims service or face-to-face contact with an
insurance representative. Also consider the claims settlement process, the
amount of the deductible and the extent of the replacement coverage.
Insurance companies and the policies they offer are not all the same, so think
about more than just the price

History

Early methods:Methods

for

transferring

or

distributing

risk

were

practiced

by Chinese and Babylonian traders as long ago as the 3rd and 2ndmillennia BC,
respectively. Chinese merchants travelling treacherous river rapids would
redistribute their wares across many vessels to limit the loss due to any single
vessel's capsizing. The Babylonians developed a system which was recorded in the
famous Code

of

Hammurabi,

c.

1750

BC,

and

practiced

by

early Mediterranean sailing merchants. If a merchant received a loan to fund his

shipment, he would pay the lender an additional sum in exchange for the lender's
guarantee to cancel the loan should the shipment be stolen or lost at sea.
At some point in the 1st millennium BC, the inhabitants of Rhodes created the
'general average'. This allowed groups of merchants to pay to insure their goods
being shipped together. The collected premiums would be used to reimburse any
merchant whose goods were jettisoned during transport, whether to storm or sink
age.
Separate insurance contracts (i.e., insurance policies not bundled with loans or
other kinds of contracts) were invented in Genoa in the 14th century, as were
insurance pools backed by pledges of landed estates. The first known insurance
contract dates from Genoa in 1347, and in the next century maritime insurance
developed widely and premiums were intuitively varied with risks.[4]These new
insurance contracts allowed insurance to be separated from investment, a
separation of roles that first proved useful in marine insurance.

Modern insurance:Insurance became far more sophisticated in Enlightenment era Europe, and
specialized varieties developed.
Property insurance as we know it today can be traced to the Great Fire of London,
which in 1666 devoured more than 13,000 houses. The devastating effects of the
fire converted the development of insurance "from a matter of convenience into
one of urgency, a change of opinion reflected in Sir Christopher Wren's inclusion
of a site for 'the Insurance Office' in his new plan for London in 1667". A number
of

attempted

fire

insurance

schemes

came

to

nothing,

but

in

1681, economist Nicholas Barbon and eleven associates established the first fire
insurance company, the "Insurance Office for Houses", at the back of the Royal
Exchange to insure brick and frame homes. Initially, 5,000 homes were insured by
his Insurance Office.
The first life insurance policies were taken out in the early 18th century. The first
company to offer life insurance was the Amicable Society for a Perpetual
Assurance Office, founded in London in 1706 by William Talbot and Sir Thomas
Allen. Edward Rowe Mores established the Society for Equitable Assurances on
Lives and Survivorship in 1762.
It was the world's first mutual insurer and it pioneered age based premiums based
on mortality rate laying the framework for scientific insurance practice and
development and the basis of modern life assurance upon which all life
assurance schemes were subsequently based.
In the late 19th century, "accident insurance" began to become available. This
operated much like modern disability insurance. The first company to offer

accident insurance was the Railway Passengers Assurance Company, formed in

1848 in England to insure against the rising number of fatalities on the
nascent railway system.
By the late 19th century, governments began to initiate national insurance
programs against sickness and old age. Germany built on a tradition of welfare
programs in Prussia and Saxony that began as early as in the 1840s. In the 1880s
Chancellor Bismarck introduced old age pensions, accident insurance and medical
care that formed the basis for Germany's welfare state. In Britain more extensive
legislation was introduced by the Liberal government in the 1911 National
Insurance Act. This gave the British working classes the first contributory system
of insurance against illness and unemployment. This system was greatly expanded
after the Second under the influence of the Beveridge Report, to form the first
modern welfare state.

PRINCIPLE
Insurance involves pooling funds from many insured entities (known as exposures)
to pay for the losses that some may incur. The insured entities are therefore
protected from risk for a fee, with the fee being dependent upon the frequency and
severity of the event occurring. In order to be an insurable risk, the risk insured
against must meet certain characteristics. Insurance as a financial intermediary is a
commercial enterprise and a major part of the financial services industry, but
individual entities can also insure through saving money for possible future losses.

TYPES OF INSURANCE
Any risk that can be quantified can potentially be insured. Specific kinds of
risk that may give rise to claims are known as perils. An insurance policy will set
out in detail which perils are covered by the policy and which are not. Below are
non-exhaustive lists of the many different types of insurance that exist. A single
policy may cover risks in one or more of the categories set out below. For
example, vehicle insurance would typically cover both the property risk (theft or
damage to the vehicle) and the liability risk (legal claims arising from an accident).
A home insurance policy in the US typically includes coverage for damage to the
home and the owner's belongings, certain legal claims against the owner, and even
a small amount of coverage for medical expenses of guests who are injured on the
owner's property

1. Auto insurance
Auto insurance protects the policyholder against financial loss in the event of
an incident involving a vehicle they own, such as in traffic.
Coverage typically includes:
Property coverage, for damage to or theft of the car
Liability coverage, for the legal responsibility to others for bodily injury or
property damage
Medical coverage, for the cost of treating injuries, rehabilitation and
sometimes lost wages and funeral expenses

2. Gap insurance
Gap insurance covers the excess amount on your auto loan in an instance where
your insurance company does not cover the entire loan. Depending on the
companies specific policies it might or might not cover the deductible as well.
This coverage is marketed for those who put low down payments, have high
interest rates on their loans, and those with 60 month or longer terms. Gap
insurance is typically offered by your finance company when you first purchase
your vehicle. Most auto insurance companies offer this coverage to consumers
as well. If you are unsure if GAP coverage had been purchased, you should
check your vehicle lease or purchase documentation.

3. Health insurance
Health insurance policies cover the cost of medical treatments. Dental
insurance, like medical insurance protects policyholders for dental costs. In the
US and Canada, dental insurance is often part of an employer's benefits
package, along with health insurance.

4. Casualty insurance
Casualty insurance insures against accidents, not necessarily tied to any specific
property. It is a broad spectrum of insurance that a number of other types of

insurance could be classified, such as auto, workers compensation, and some

liability insurances.

5. Life Insurance
Life insurance provides a monetary benefit to a decedent's family or other
designated beneficiary, and may specifically provide for income to an insured
person's family, burial, funeral and other final expenses. Life insurance policies
often allow the option of having the proceeds paid to the beneficiary either in a
lump sum cash payment or an annuity. In most states, a person cannot purchase a
policy on another person without their knowledge.

6. Burial insurance
Burial insurance is a very old type of life insurance which is paid out upon
death

to

cover

final

expenses,

such

as

the

cost

of

a funeral.

The Greeks and Romans introduced burial insurance c. 600 CE when they
organized guilds called "benevolent societies" which cared for the surviving
families and paid funeral expenses of members upon death. Guilds in the Middle
Ages served a similar purpose, as did friendly societies during

7. Property insurance
Property insurance provides protection against risks to property, such
as fire, theft or weather damage. This may include specialized forms of
insurance such as fire insurance, flood insurance, earthquake insurance, home
insurance, inland marine insurance or boiler The term property insurance may,
like casualty insurance, be used as a broad category some subtypes of insurance

8. Liability insurance
Liability insurance is a very broad superset that covers legal claims against the
insured. Many types of insurance include an aspect of liability coverage. For
example, a homeowner's insurance policy will normally include liability
coverage which protects the insured in the event of a claim brought by someone
who slips and falls on the property; automobile insurance also includes an
aspect of liability insurance that indemnifies against the harm that a crashing
car can cause to others' lives, health, or property. The protection offered by a
liability insurance policy is twofold: a legal defence in the event of a lawsuit
commenced against the policyholder and indemnification (payment on behalf
of the insured) with respect to a settlement or court verdict. Liability policies
typically cover only the negligence of the insured, and will not apply to results
of wilful or intentional acts by the insured.

9. Credit ( Payment protection insurance)

Credit insurance repays some or all of a loan when certain circumstances
arise to the borrower such as unemployment, disability, or death.

 Mortgage insurance insures the lender against default by the borrower.

Mortgage insurance is a form of credit insurance, although the name "credit
insurance" more often is used to refer to policies that cover other kinds of
debt.
Many credit cards offer payment protection plans which are a form of credit
insurance.
Trade credit insurance is business insurance over the accounts receivable of
the insured. The policy pays the policy holder for covered accounts
receivable if the debtor defaults on payment.

CHARACTERISTICS OF INSURANCE
rved in case of life, marine, fire and general insurances

1. Sharing of Risk:
Insurance is a device to share the financial losses which might befall on an
individual or his family on the happening of a specified event. The event may be
death of a bread-winner to the family in the case of life insurance, marine-perils in
marine insurance, fire in fire insurance and other certain events in general
insurance, e.g., theft in burglary insurance, accident in motor insurance, etc. The
loss arising nom these events if insured are shared by all the insured in the form of
premium.
2. Co-operative Device:
The most important feature of every insurance plan is the co-operation of large
number of persons who, in effect, agree to share the financial loss arising due to a
particular risk which is insured. Such a group of persons may be brought together
voluntarily or through publicity or through solicitation of the agents.
3. Value of Risk:
The risk is evaluated before insuring to charge the amount of share of an insured,
herein called, consideration or premium. There are several methods of evaluation
of risks. If there is expectation of more loss, higher premium may be charged. So,
the probability of loss is calculated at the time of insurance.

4. Payment at Contingency:
The payment is made at a certain contingency insured. If the contingency occurs,
payment is made. Since the life insurance contract is a contract of certainty,
because the contingency, the death or the expiry of term, will certainly occur, the
payment is certain. In other insurance contracts, the contingency is the fire or the
marine perils etc., may or may not occur. So, if the contingency occurs, payment is
made, otherwise no amount is given to the policy-holder.
5. Amount of Payment:
The amount of payment depends upon the value of loss occurred due to the
particular insured risk provided insurance is there up to that amount. In life
insurance, the purpose is not to make good the financial loss suffered. The insurer
promises to pay a fixed sum on the happening of an event.

6. Insurance is not Charity:

Charity is given without consideration but insurance is not possible without
premium. It provides security and safety to an individual and to the society
although it is a kind of business because in consideration of premium it guarantees
the payment of loss. It is a profession because it provides adequate sources at the
time of disasters only by charging a nominal premium for the service.