A Seminar Report On

BANKING INDUSTRIES IN INDIA

Submitted for partial fulfillment of requirement for the award of degree of Master of Business Administration
Of
CHHATTISGARH SWAMI VIVEKANAND TECHNICAL UNIVERSTY BHILAI (C.G.) Session 2009-11

Submitted By Neelam Meshram MBA IV Semester MBA/09/4233

DEPARTMENT OF MANAGEMENT
RUNGTA COLLAGE OF ENGINEERING & TECHNOLOGY
APPROVED BY AICTE, NEW DELHI, KOHKA-KURUD ROAD, BHILAI

INTRODUCTION
OVER VIEW OF BANKING:
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it presidency banks. Banking Regulation Act of India, 1949 defines Banking as accepting, for the purpose of lending or of investment of deposits of money from the public, repayable on demand or otherwise or withdrawable by cheque, draft order or otherwise. The Reserve Bank of India Act, 1934 and the Banking Regulation Act, 1949, govern the banking operations in India.

WHAT IS BANKING?
A system of trading money which provides a safe place to save excess cash, known as deposits. Supplies liquidity to the economy by loaning this money out to help businesses grow and to allow consumers to purchase consumer products, homes, cars etc.

WHAT ARE BANKS?

Institutions which deals in money and credit. An intermediary, which handles other peoples money both for their advantage and to its own profits. A financial institution that links the flow of funds from savers to the users. Plays an important role in the economy of any country as they hold the saving of the public.

BROAD CLASSIFICATION OF BANK IN INDIA

1. The RBI: The RBI is the supreme monetary and banking authority in the country and has the responsibility to control the banking system in the country. It keeps the reserves of all scheduled banks and hence is known as the Reserve Bank.

2. Public Sector Banks

Nationalized Banks (19) Regional Rural Banks Sponsored by Public Sector Banks (196)

3. Private Sector Banks:

4. Co-operative Sector Banks: Land Development Banks 5. -operative Banks -operative Banks (22)

Development Banks: Development Banks mostly provide long term finance for
setting up industries. They also provide short-term finance (for export and import activities)

Industrial Finance Co-operation of India (IFCI) Industrial Investment Bank of India (IIBI) National Bank for Agriculture and Rural Development (NABARD) Export-Import Bank of India

TYPES OF BANKS IN INDIA

CENTRAL CENTRAL BANK

COMMERCIAL BANK

INSTITUTIONAL BANK

SPECIALIZED BANK

NON BANKING FIS

ROLE OF BANKING
Banks play a positive role in economic development of a country as repositories of communitys savings and as purveyors of credit. Indian Banking has aided the economic development during the last fifty years in an effective way. The banking sector has shown a remarkable responsiveness to the needs of planned economy. It has brought about a considerable progress in its efforts at deposit mobilization and has taken a number of measures in the recent past for accelerating the rate of growth of deposits. As recourse to this, the commercial banks opened branches in urban, semi-urban and rural areas and have introduced a number of attractive schemes to foster economic development.

COMMERCIAL ROLE OF BANKING

Issue of banknotes (promissory notes issued by a banker and payable to bearer on demand) Processing of payments by way of telegraphic transfer, EFTPOS, internet banking or other means Issuing bank drafts and bank cheques Accepting money on term deposit Lending money by way of overdraft, installment loan or otherwise Providing documentary and standby letters of credit (trade finance), guarantees, performance bonds, securities underwriting commitments and other forms of off-balance sheet exposures Safekeeping of documents and other items in safe deposit boxes Currency exchange Acting as a 'financial supermarket' for the sale, distribution or brokerage, with or without advice, of insurance, unit trusts and similar financial products

ECONOMIC ROLE OF BANKING

Issue of money, in the form of banknotes and current accounts subject to cheque or payment at the customer's order. Netting and settlement of payments. Credit intermediation Credit quality improvement

Maturity transformation

MAIN COMPETITORS OF BANKS

Mutual fund Share market Insurance. Money lenders Family and friends

PRESENT SCENARIO

Banking industry has been undergoing a rapid transformation. Banks today are market driven and market responsive. With the entry of new players and multiple channels, customers (both corporate and retail) have become more discerning and less "loyal" to banks. They have been managing a world of information about customers - their profiles, location, needs, requirements, cash positions, etc. Furthermore, banks have very strong in-house research and market intelligence units in order to face the future challenges of competition, especially customer retention

SERVICES GIVEN BY BANKS

Demat account Lockers Cash management Insurance product Mutual fund product Loans ECS(Electronic clearance system) Taxes

CONCLUSION

This seminar report has been prepared by me to know the BANKING INDUSTRIES IN INDIA. In this report I have studied about various banking industries, and by doing this I have observed that the banking services is growing very good, they are doing this to develop the country economically. Their aim is to make the customers knowledgeable, satisfied.