BY:- NIRMAL JOSHI MAYURESH KUMBHAR PALLAVI INDURKAR NIRANJAN TIWARI MANALI SURYAVANSHI MINU PAREEK

What is universal Banking ?

A system of banking where banks are allowed to provide a variety of services to their customers (world wide). Banks are not limited to just loans, checking and savings accounts, and other similar activities, but are allowed to offer investment services as well which helps to grow protocol between the nations.

What does world bank say?

As per the World Bank, "In Universal Banking, large banks operate extensive network of branches, provide many different services, hold several claims on firms(including equity and debt) and participate directly in the Corporate Governance of firms that rely on the banks for funding or as insurance underwriters

The Concept of Universal Banking

Liberalization in the economy Large scale mergers, amalgamations and acquisitions

Advantages of Universal Banking

Economies of Scale: Profitable Diversions: Resource Utilization : Easy Marketing on the Foundation of a Brand Name : One-stop shopping. :

Disadvantages of Universal Banking

Grey Area of Universal Bank : - Overcoming the differences in regulatory requirement for a bank and (DFI) DEVELOPMENT FINANCIAL INSTITUTION No Expertise in Long term lending. - transformation into a bank may not be of great assistance in lending long-term. NPA Problem Remained Intact.

Conflict of interests : Because of underwriting activities.

Strengths :Economies of scale :Resource utilization :Easy marketing on the foundation of a brand name :-

One-stop shopping :Investor friendly activities :-

Grey No

area of universal bank :-

expertise in long term lending :remained intact :-

NPA problem

Threats
Big empires

:-

To To To

increase efficiency and productivity :get more exposure in the global market :eradicate the financial apartheid :-

The

need of universal banking :-

Universal Banking in India

In India, Development financial institutions (DFIs) and refinancing institutions (RFIs) were meeting specific sectoral needs and also providing long-term resources at concessional terms, while the commercial banks in general, by and large, confined themselves to the core banking functions of accepting deposits and providing working capital finance to industry, trade and agriculture. Consequent to the liberalisation and deregulation of financial sector, there has been blurring of distinction between the commercial banking and investment banking. Now RBI has asked FIs, which are interested to convert itself into a universal bank, to submit their plans for transition to a universal bank for consideration and further discussions.

4/22/2012

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CONVERSION OF FIS TO UNIVERSAL BANK

Reserve requirements Permissible activities. Disposal of non-banking assets Composition of the Board. Prohibition on floating charge of assets. Nature of subsidiaries. Restriction on investments Connected lending Licensing.

CONVERSION OF FIS TO UNIVERSAL BANK

Branch network Assets in India Format of annual reports. Managerial remuneration of the Chief Executive Officers. Priority sector lending Prudential norms.

THE FUTURE TREND OF UNIVERSAL BANKING IN DIFFERENT COUNTRIES

Leading role in Germany & Switzerland Works through separately capitalized subsidiaries in England & Japan Operates through a holding company in USA & Japan. Factors determining future growth of universal banking They possess a number of advantages over specialized institutions. Universal banks do not enjoy a comparative advantage in all areas of banking. Universality of banking may be achieved in various ways. No single type of universal banking system exists.

conclusion

Universal banking on its own is a sound practice that can offer developing countries special advantages. Perhaps it also posses certain drawbacks which cant be overlooked.

BIBLIOGRAPHY
www.wikipedia.com 2. www.scribd.com
1.