Nationalized banks in india

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NATIONALISED

BANKs

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B-COM DEPARTMENT MANNAMMEMORIAL

N.S.S COLLEGE KOTTIYAM

KOLLAM

DONE BY ; SREEKUTTY M S

Tuesday, May 2, 2023

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BANKS IN INDIA AND

NATIONALISED BANKS


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CONTENTS BANKS AN INTRODUCTIONHISTORY OF BANKINGORIGIN OF THE WORD; BANKBANKING STNDARD ACTIVITY RANGE OF ACTIVITIES CHANNELS BANKING SERIVICESTHE SERVICES BUSINESS MODELSRETAIL BANKINGBUSINEES (OR COMMERCIAL/INVESTMENT ) BANKINGCAPITAL AND RISK ECONOMIC FUNTIONS TYPES OF BANKS INTERNATIONAL BANKINGACCOUNTING FOR BANK ACCOUNTS GLOBALISATION IN THE BANKING INDUSTRY BANKING IN INDIAHISTORY OF BANKING IN INDIA(POST IND….)NATIONALISATION LIBERLISATION BANKING CURRENT PERIOD ADOPTION OF BANKING TECHNOLOGY EXPANSION OF BANKING INFRASTRUCTURE STEPS TAKEN BY RESERVE BANK TO STREGHTEN BANKING INFRASTRUCTURE IFSCRESERVE BANK OF INDIARBI – HISTORY(1935-1950)BANKS CLASSIFICATION NATIONALIZED BANKS (SBI AND ASSOCIATES) REGIONAL RURAL BANKS PRIVATE SECTOR BANKS FOREIGN BANKS OPERATING IN INDIA FOREIGN BANKS WITH BUSINESS IN INDIA



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BANKS :- AN INTRODUCTION


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BANK • WHAT DO YOU MEAN BY BANKS

A bank is a financial intermediary that accepts deposits and channels those deposits into lending activities, either directly by loaning or indirectly through capital markets. A bank links together customers that have capital deficits and customers with capital surpluses.

A bank is a company that works with the money that the people give it. If you give your money to a bank, it not only protects it but pays you interest so that it can work with the money. This is one of the reasons why people save their money in a bank. Money may also be safer there than at home.

Banks also lend money to other businesses and customers. They collect extra money called banking fees with which they pay interest to savers as well as salaries for their workers. Banks make a profit because they collect more interest than they pay to savers.

Without banks the world’s economy would not be able to grow. Investors would not find the money they need for new projects. Industries could not buy new machines and modern technology.

Under English common law, a banker is defined as a person who carries on the business of banking, which is specified as conducting current accounts for his customers,paying cheques drawn on him/her, andcollecting cheques for his/her customers.

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Due to their importance in the financial system and influence on national economies, banks are highly regulated in most countries. Most nations have institutionalized a system known as fractional reserve banking, under which banks hold liquid assets equal to only a portion of their current liabilities. In addition to other regulations intended to ensure liquidity, banks are generally subject to minimum capital requirements based on an international set of capital standards, known as the Basel Accords.Banking in its modern sense evolved in the 14th century in the rich cities of Renaissance Italy but in many ways was a continuation of ideas and concepts of credit and lending that had its roots in the ancient world. In the history of banking, a number of banking dynasties—notably the Medicis, the Fugger's, the Wellers, the Berenbergs, and the Rothschilds—have played a central role over many centuries. The oldest existing retail bank is Monte dei Paschi di Siena, while the oldest existing merchant bank is Berenberg Bank.


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HISTORY OF BANKING:- Tuesday, May 2, 2023

The origins of modern banking can be traced to medieval and early Renaissance Italy, to the rich cities in the north like Florence, Lucca, Siena, Venice and Genoa. The Bardi and Peruzzi families dominated banking in 14th century Florence, establishing branches in many other parts of Europe. One of the most famous Italian banks was the Medici Bank, set up by Giovanni di Bicci de' Medici in 1397. The earliest known state deposit bank, Banco di San Giorgio (Bank of St. George), was founded in 1407 at Genoa, Italy.Modern banking practice, including fractional reserve banking and the issue of banknotes, emerged in the 17th and 18th centuries. Merchants started to store their gold with the goldsmiths of London, who possessed private vaults, and charged a fee for that service. In exchange for each deposit of precious metal, the goldsmiths issued receipts certifying the quantity and purity of the metal they held as a bailee; these receipts could not be assigned, only the original depositor could collect the stored goods. Gradually the goldsmiths began to lend the money out on behalf of the depositor, which led to the development of modern banking practices; promissory notes (which evolved into banknotes) were issued for money deposited as a loan to the goldsmith. The goldsmith paid interest on these deposits. Since the promissory notes were payable on demand, and the advances (loans) to the goldsmith's customers were repayable over a longer time period, this was an early form of fractional reserve banking. The promissory notes developed into an assignable instrument which could circulate as a safe and convenient form of money backed by the goldsmith's promise to pay, allowing goldsmiths to advance loans with little risk of default. Thus, the goldsmiths of London became the forerunners of banking by creating new money based on credit.The Bank of England was the first to begin the permanent issue of banknotes, in 1695. The Royal Bank of Scotland established the first overdraft facility in 1728. By the beginning of the 19th century a bankers' clearing house was established in London to allow multiple banks to clear transactions. The Rothschild's pioneered international finance on a large scale, financing the purchase of the Suez canal for the British government.The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy, which has been operating continuously since 1472. It is followed by Berenberg Bank of Hamburg (1590) and Sveriges Riksbank of Sweden (1668).


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The sealing of the Bank of England Charter (1694).

http://en.wikipedia.org/wiki/File:Bank_of_England_Charter_sealing_1694.jpg

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ORIGIN OF THE WORD; BANK:-


The word bank was borrowed in Middle English from Middle French banque, from Old Italian banca, from Old High German banc, bank "bench, counter". Benches were used as desks or exchange counters during the Renaissance by Florentine bankers, who used to make their transactions atop desks covered by green tableclothsOne of the oldest items found showing money-changing activity is a silver Greek drachm coin from ancient Hellenic colony Trapezus on the Black Sea, modern Trabzon, c. 350–325 BC, presented in the British Museum in London. The coin shows a banker's table (trapeza) laden with coins, a pun on the name of the city. In fact, even today in Modern Greek the word Trapeza (Τράπεζα) means both a table (in formal language) and a bank (in everyday speech). [The everyday word used for "table" is trapezi ("τραπέζι"), a modern form of the archaic trapeza (τράπεζα)].

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Banking ; Standard activities:- Banks act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques deposited to customers' current accounts. Banks also enable customer payments via other payment methods such as Automated Clearing House (ACH), Wire transfers or telegraphic transfer, EFTPOS, and automated teller machine (ATM). Banks borrow money by accepting funds deposited on current accounts, by accepting term deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current accounts, by making installment loans, and by investing in marketable debt securities and other forms of money lending. Banks provide different payment services, and a bank account is considered indispensable by most businesses and individuals. Non-banks that provide payment services such as remittance companies are normally not considered as an adequate substitute for a bank account. Banks can create new money when they make a loan. New loans throughout the banking system generate new deposits elsewhere in the system. The money supply is usually increased by the act of lending, and reduced when loans are repaid faster than new ones are generated. In the United Kingdom between 1997 and 2007, there was a big increase in the money supply, largely caused by much more bank lending, which served to push up property prices and increase private debt. The amount of money in the economy as measured by M4 in the UK went from £750 billion to £1700 billion between 1997 and 2007, much of the increase caused by bank lending. If all the banks increase their lending together, then they can expect new deposits to return to them and the amount of money in the economy will increase. Excessive or risky lending can cause borrowers to default, the banks then become more cautious, so there is less lending and therefore less money so that the economy can go from boom to bust as happened in the UK and many other Western economies after 2007.


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Range of activities:-

Banks offer many different channels to access their banking and other services:Automated Teller MachinesA branch is a retail locationCall centerMail: most banks accept cheque deposits via mail and use mail to communicate to their customers, e.g. by sending out statementsMobile banking is a method of using one's mobile phone to conduct banking transactionsOnline banking is a term used for performing multiple transactions, payments etc. over the InternetRelationship Managers, mostly for private banking or business banking, often visiting customers at their homes or businessesTelephone banking is a service which allows its customers to conduct transactions over the telephone with automated attendant or when requested with telephone operatorVideo banking is a term used for performing banking transactions or professional banking consultations via a remote video and audio connection. Video banking can be performed via purpose built banking transaction machines (similar to an Automated teller machine), or via a video conference enabled bank branch clarificationDSA is a Direct Selling Agent, who works for the bank based on a contract. Its main job is to increase the customer base for the bank.

Activities undertaken by large banks include investment banking, corporate banking, private banking, insurance, consumer finance, foreign exchange trading, commodity trading, trading in equities, futures and options trading and money market trading.

Channels


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What kind of services do banks offer?

Banks provide their customers with a number of services. With a checking account you can pay your bills. A check is a slip of paper that tells the bank how much money it should withdraw from your account and pay to someone else. Today, more and more people use the internet, also a banking service, to pay their bills. Banks also give their customers plastic cards with which they can get money from their account everywhere and whenever they want. They can also use them to pay without cash at shops, gas stations and other stores. Checking accounts are a comfortable way for customers to handle their money.


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For people who want to save money banks offer savings accounts. Usually, banks pay more interest for savings accounts than they do for checking accounts. They hope that the customers will leave their money in the bank for a long time, which is why the bank can work with this money and offer it as loans. Banks, however, cannot give all of their money as loans. In most countries the government limits the amount of money that banks can use as loans. They must always keep back a certain percentage in the form of cash. People who need money for certain things like buying a house or a car need a lot of money quickly. The money they borrow from a bank is called a loan. In most cases they do not pay back all of the money at once but a small part of it, with interest, every month. If someone cannot pay back a loan the bank usually can take away valuable objects like cars or houses. Modern banks offer their customers many other services as well. They tell them how they can make money with investments in stocks and bonds. Credit cards are given to customers as a cash-free way of buying things. Almost all banks have automatic teller machines (ATM) at which customers receive money from their account. Telephone banking is an easy way to pay your bills by calling a special telephone number and typing in a certain sequence of digits. Some banks even deal with insurance.


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What are the different types of services offered by banks?Banks offer the following services to account holders at their specified branches — multi-city / Payable at Par (PAP) cheque facility, anywhere banking facility, trade services, phone banking facility, internet banking facility, credit card, debit/ATM card, mobile banking and Real Time Gross Settlement (RTGS).Foreign banks are expanding the number of products on offer, their complexity such as derivatives, leverage financing. Doorstep banking facilities are being offered by some of these banks to cater to convenience lifestyle of its customers. Private banks are extending services including wealth management and equity trading apart from credit cards.

How do banks price their services? The pricing mechanism is dependent on client relationship and the nature of the transaction. The pricing can be arrived at by profiling customers into different segments. The large corporate segment comprises of the bulk and large value transactions.This segment is characterized by multiple service relationships. The pricing in this segment is transaction based and depends on the size of transactions and on the banks' relationship with the corporate. Hence, the pricing is decided on a one to one basis and public.The other segments comprise the brokers, small and medium enterprises (SME), other banks and the retail segment. In each of these cases, the pricing is not made public and is determined on the basis of the nature of the transaction and the banks' relationship with the client, on a one to one basis.Typically, high volumes and low value characterize the SME segment. Therefore the pricing for this segment differs from that of the large corporates. Similarly the pricing for the banks is very different. In the retail segment, the bank publishes its tariff.


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How do services contribute to the bank's income?Increasingly banks are witnessing a growth in their non-interest or fee-based incomes. With interest spreads decreasing, banks have little option but to ramp up their revenues from fee-based income.Fee-based income constitutes a major portion of a bank's other income. The ratio of other income to total income is an indicator of the size of fee-based income. Treasury incomes of public sector banks are no longer the major revenue driver and have been coming down as a result of rising interest rates. Volatility of interest rates are compelling banks to increase their fee based income.What is non-fund based income?The non-fund based income comprises of revenues from both financial commitment and services rendered. Financial commitment includes guarantees, letters of credit and bankers acceptances etc.The fees charged may vary from bank to bank and is dependant on the relationship of the bank with the client and the size of the transaction. On the other hand, the revenues from services rendered include fees from funds transfer and enabling services like ATM, internet banking etc. The revenues from funds transfer come from corporate services such as cash management, foreign exchange remittances and from retail services including drafts, pay orders etc.



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The servicesThe Commercial Banks offer a number of services to the general public. Below is a list of some of the services offered:Deposit/Investment Accounts:

SavingsFixed (Term) DepositsSpecial Investment AccountsCorporate/Personal Chequing AccountsForeign Currency Accounts

Credit Facilities: Loans/MortgagesOverdraftsBonds

Trade Financing (Export/Import Trade Financing): Letter of CreditBill DiscountingInvoice FinancingBills for CollectionBank Guarantee and ConfirmationsInventory Financing


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Foreign Trade: Draft/Money Orders NegotiationElectronic Funds TransfersTraveler’s Cheques

Night Deposit FacilitiesSafety Deposit BoxesPayroll ProcessingCard Services:

Credit Cards (Local and Foreign)Debit Cards

Automated Teller Machines (ATMs)Point of Sales (POS) TerminalsTelephone BankingPayment of Utility BillsInternet BankingManager’s ChequesLetter of IntroductionBalance Confirmation (Audit Queries)Credit Enquiries LettersStanding OrdersEncashment of Cheques/withdrawal of Funds from Accounts

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Different Services that a bank offers to Personal Customers

Most of us know what a bank is, we know in order to manage our financial life; we should have both a current account and a saving’s accounts to create balance. Take a look below at the services that banks offer to personal customers:Current Account: A Current Account is a common type of bank account used to store money that is needed on a regular, day-to-day basis. It is a handy way to manage your money in the short-term. It allows you to:Receive money such as your salary or other types of incomeWithdraw cash by using your ATM (Automated Teller Machine) or Laser Card or at the bank counterPay for things using your Laser Card or by writing chequesTransfer money to other accountsBank using the internet or the telephonePay billsATM Cards & Laser Cards ATM Cards are used to withdraw cash from your current accountYou can use your ATM card abroad so long as your card has a Link logo on the backYou can use your ATM card at any banks’ ATM machinesAs an alternative to using cash Laser Cards (also known as Debit Cards) allow you to pay for items at POS (Point of Sale) terminals in most shops, restaurants, and now even in some taxis!Some retailers will give you the option of receiving “cash back”, the amount of which is added to the transaction on your laser card



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Savings account: A savings account is a type of bank, building society, credit union or An Post account that is used for accumulating money. Funds saved can be for both short and long-term needs. Short-term needs include things like holidays, weddings and Christmas presents or just for a rainy day. Longer-term needs include things like saving for college or a house.There are many different types of savings accounts available. When deciding on a savings account you should consider how much you want to save and what access you want to the money.Generally speaking, savings accounts can be opened with a small sum of money and you can save either regular amounts or lumps sums, and sometimes both.A Savings Account accumulates interest – interest rates can be either fixed or variable.The Government charges DIRT (Deposit Interest Retention Tax) on the interest earned on savings. This tax is automatically taken from your account.Investments :Investment involves purchasing a financial product or other item of value with the expectation that the value of the item will increase over time. Simply put, investment means spending money in the hope of making more money.Investments can offer you a better return on your money in the longer-term compared to savings accounts. However, certain investments may carry a higher level of risk.What is a Credit Card? Credit cards are a “pay later” tool as they let you purchase an item and pay for it some time in the future. VISA and MasterCard are the two main types of Credit Card in Ireland.Credit cards are mainly provided by banks but some retailers and airlines also provide their own credit cards.Remember that you must be 18 years or over to use a Credit CardHow does a Credit Card work? Credit cards have a credit limit, meaning the amount you can spend on the card – this is set by your credit card provider.You have the option of spending the limit in one go or over a period of time.Each month you will receive a credit card statement from your credit card provider. This shows you various information relating to your card including how much you have spent since the last statement, any cash you withdrew using the card, any interest due, the amount you owe and the minimum payment that must be made by a set date.You can settle the amount when your bill falls due or you have the option to pay a minimum amount, but don’t forget you’ll be charged interest on outstanding balances.


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What is Insurance? Insurance is a form of risk management – you pay a set amount called a premium to an insurer and the insurer agrees to cover the costs associated with certain risks that could be financially devastating if they were to happen. There are a number of different types of insurance including:Car Insurance By law if you have a car you must, at the very least, have third party insurance. Third party insurance covers any injury or loss suffered by other people as a result of your driving. Comprehensive insurance is an “all inclusive” type of insurance that covers the cost of repair or replacement if your car is stolen, damaged or destroyed and includes any loss suffered by Third parties.Home Insurance Some of the risks your home may be subject to include damage by fire or flooding, burglary or someone injuring themselves on your property. Taking out insurance can cover you for some of these risks.Travel Insurance There are many risks associated with travel including damage or delay of luggage, cancelled flights, delayed or missed departure, loss or theft of money or passport and illness or injury. Travel insurance can help compensate you in the eventuality of these things happening.Health Insurance Private health insurance helps cover medical or hospital expenses if you get sick, have and accident or need an operation.Payment Protection insurance Payment Protection insurance is designed to cover your repayments on a loan if you suffer from an accident, illness, death or redundancy.


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What is a Mortgage? A mortgage is a special type of loan offered by banks and building societies to enable people to buy property. It’s typically a big loan, paid back by the borrower over 25 or 30 years, in monthly instalments.Some different types of Mortgages…. MortgageThis is the most common type of mortgage. The monthly repayment consists of the original loan amount (or capital repayment) and the interest payment. At the beginning of the mortgage’s life, most of the monthly repayment goes towards the interest. Towards the end, more of the monthly payment goes towards the capital repayment.Interest-only mortgageWith this type of mortgage the monthly repayment only covers the interest on the mortgage and not the capital. The original loan must be repaid in a lump sum at the end of the mortgage term.What is online banking? Online banking refers to carrying out certain banking transactions over the internet. Banking online is very convenient and can save you time and money. All the major banks offer online banking. There are a number of things you can do online such as:View balances and statementsTransfer moneyTop up your mobile phonePay bills


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Some bank’s online banking services allow you to:Apply for certain products, such as credit cards, loans and savings accountsSet up, amend and cancel standing ordersShare deal – buy and sell shares onlineBenefits of online banking Some of the benefits of online banking include: Save time and effort by banking from home (or wherever you have access to a pc and the internet)Information about your accounts and transactions is immediately availableCan be cost-effective – for example transactions charges may be lower and online accounts may offer higher interest ratesCuts down on your paper workWhat is a pension and why start one? Pensions are an investment you contribute to throughout your life, putting money away so you’ll have money in the bank when you retire. While there are many different types of pensions the principle is the same - to ensure you have a nest egg to live from when you get older.A pension plan is basically a long-term savings plan. People put money away in increments called “contributions”.Usually people plan for their retirement by starting a pension plan once they start working.People save for a pension so that they can maintain a certain standard of living after they retire.Different types of pension State PensionThe Government pays a weekly pension to people once they reach the age of 66.Employee pensionsSome employers contribute to a pension fund for its’ employees and employees then have the option to add to this fund.Self-employed pensionsPeople who are self-employed are entitled to put a certain percentage of their profits into a pension plan and in doing so gain some tax benefits.Owner-Director pensionsThe Government allows owners or directors of companies to pay into a pension fund once the business starts making enough money for it to do so and in doing so gain some tax benefits.


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Business model A bank can generate revenue in a variety of different ways including interest, transaction fees and financial advice. The main method is via charging interest on the capital it lends out to customers.[citation

needed] The bank profits from the difference between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities. This difference is referred to as the spread between the cost of funds and the loan interest rate. Historically, profitability from lending activities has been cyclical and dependent on the needs and strengths of loan customers and the stage of the economic cycle. Fees and financial advice constitute a more stable revenue stream and banks have therefore placed more emphasis on these revenue lines to smooth their financial performance. In the past 20 years American banks have taken many measures to ensure that they remain profitable while responding to increasingly changing market conditions. First, this includes the Gramm-Leach-Bliley Act, which allows banks again to merge with investment and insurance houses. Merging banking, investment, and insurance functions allows traditional banks to respond to increasing consumer demands for "one-stop shopping" by enabling cross-selling of products (which, the banks hope, will also increase profitability). Second, they have expanded the use of risk-based pricing from business lending to consumer lending, which means charging higher interest rates to those customers that are considered to be a higher credit risk and thus increased chance of default on loans. This helps to offset the losses from bad loans, lowers the price of loans to those who have better credit histories, and offers credit products to high risk customers who would otherwise be denied credit. Third, they have sought to increase the methods of payment processing available to the general public and business clients. These products include debit cards, prepaid cards, smart cards, and credit cards. They make it easier for consumers to conveniently make transactions and smooth their consumption over time (in some countries with underdeveloped financial systems, it is still common to deal strictly in cash, including carrying suitcases filled with cash to purchase a home). However, with convenience of easy credit, there is also increased risk that consumers will mismanage their financial resources and accumulate excessive debt. Banks make money from card products through interest charges and fees charged to cardholders, and transaction fees to retailers who accept the bank's credit and/or debit cards for payments.This helps in making profit and facilitates economic development as a whole.


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Retail banking

Checking accountSavings account

Money market account

Certificate of deposit (CD)

Individual retirement account (IRA)

Credit card

Debit cardMortgage

Mutual fund

Personal loan

Time deposits

ATM card

Current Accounts

Cheque books

Retail banking


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Business (or commercial/investment) banking:-

Business (or commercial/investment)

banking

Business loan Capital raising (Equity / Debt /

Hybrids)

Mezzanine finance

Project finance

Revolving creditRisk

management (FX, interest

rates, commodities, derivatives)

Term loan

Cash Management Services (Lock box, Remote

Deposit Capture, Merchant

Processing)

credit services


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CAPITAL AND RISK:-Banks face a number of risks in order to conduct their business, and how well these risks are managed and understood is a key driver behind profitability, and how much capital a bank is required to hold. Bank capital is comprised principally of equity, retained earnings and subordinated debt.Some of the main risks faced by banks include:Credit risk: risk of loss[citation needed] arising from a borrower who does not make payments as promised.Liquidity risk: risk that a given security or asset cannot be traded quickly enough in the market to prevent a loss (or make the required profit).Market risk: risk that the value of a portfolio, either an investment portfolio or a trading portfolio, will decrease due to the change in value of the market risk factors.Operational risk: risk arising from execution of a company's business functions.Reputational risk: a type of risk related to the trustworthiness of business.Macroeconomic risk: risks related to the aggregate economy the bank is operating in.The capital requirement is a bank regulation, which sets a framework within which a bank or depository institution must manage its balance sheet. The categorization of assets and capital is highly standardized so that it can be risk weighted.e


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Economic functionsThe economic functions of banks include:1. Issue of money, in the form of banknotes and current accounts subject to check or payment at the

customer's order. These claims on banks can act as money because they are negotiable or repayable on demand, and hence valued at par. They are effectively transferable by mere delivery, in the case of banknotes, or by drawing a check that the payee may bank or cash.

2. Netting and settlement of payments – banks act as both collection and paying agents for customers, participating in interbank clearing and settlement systems to collect, present, be presented with, and pay payment instruments. This enables banks to economize on reserves held for settlement of payments, since inward and outward payments offset each other. It also enables the offsetting of payment flows between geographical areas, reducing the cost of settlement between them.

3. Credit intermediation – banks borrow and lend back-to-back on their own account as middle men.4. Credit quality improvement – banks lend money to ordinary commercial and personal borrowers

(ordinary credit quality), but are high quality borrowers. The improvement comes from diversification of the bank's assets and capital which provides a buffer to absorb losses without defaulting on its obligations. However, banknotes and deposits are generally unsecured; if the bank gets into difficulty and pledges assets as security, to raise the funding it needs to continue to operate, this puts the note holders and depositors in an economically subordinated position.

5. Asset liability mismatch/Maturity transformation – banks borrow more on demand debt and short term debt, but provide more long term loans. In other words, they borrow short and lend long. With a stronger credit quality than most other borrowers, banks can do this by aggregating issues (e.g. accepting deposits and issuing banknotes) and redemptions (e.g. withdrawals and redemption of banknotes), maintaining reserves of cash, investing in marketable securities that can be readily converted to cash if needed, and raising replacement funding as needed from various sources (e.g. wholesale cash markets and securities markets).

6. Money creation – whenever a bank gives out a loan in a fractional-reserve banking system, a new sum of virtual money is created.


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Types of banksretail banking, dealing directly with individuals and small businesses;business banking, providing services to mid-market business;corporate banking, directed at large business entities;private banking, providing wealth management services to high net worth individuals and families;investment banking, relating to activities on the financial markets.

RETAIL BANKING

CORPORATE BANKING

PRIVATE BANKING

INVESTMENT BANKING


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International banking The world’s largest banks are located in Europe, the United States and Japan. In most cases they operate in many countries of the world. Because banking is a global industry that does not stop at a country’s borders there must be worldwide agreements. International standards that banks must obey are written down in the Basel accords.


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Accounting for bank accountsBank statements are accounting records produced by banks under the various accounting standards of the world. Under GAAP and MAIC there are two kinds of accounts: debit and credit. Credit accounts are Revenue, Equity and Liabilities. Debit Accounts are Assets and Expenses. This means you credit a credit account to increase its balance, and you debit a credit account to decrease its balance.This also means you credit your savings account every time you deposit money into it (and the account is normally in credit), while you debit your credit card account every time you spend money from it (and the account is normally in debit). However, if you read your bank statement, it will say the opposite—that you credit your account when you deposit money, and you debit it when you withdraw funds. If you have cash in your account, you have a positive (or credit) balance; if you are overdrawn, you have a negative (or deficit) balance.Where bank transactions, balances, credits and debits are discussed below, they are done so from the viewpoint of the account holder—which is traditionally what most people are used to seeing.


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Globalization in the Banking Industry

In modern time there has been huge reductions to the barriers of global competition in the banking industry. Increases in telecommunications and other financial technologies, such as Bloomberg, have allowed banks to extend their reach all over the world, since they no longer have to be near customers to manage both their finances and their risk. The growth in cross-border activities has also increased the demand for banks that can provide various services across borders to different nationalities. However, despite these reductions in barriers and growth in cross-border activities, the banking industry is nowhere near as globalized as some other industries. In the USA, for instance, very few banks even worry about the Riegle-Neal Act, which promotes more efficient interstate banking. In the vast majority of nations around globe the market share for foreign owned banks is currently less than a tenth of all market shares for banks in a particular nation. One reason the banking industry has not been fully globalized is that it is more convenient to have local banks provide loans to small business and individuals. On the other hand for large corporations, it is not as important in what nation the bank is in, since the corporation's financial information is available around the globe. A Study of Bank Nationality and reach


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BANKING IN INDIA


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Banking in India in the modern sense originated in the last decades of the 18th century. The first banks were Bank of Hindustan (1770-1829) and The General Bank of India, established 1786 and since defunct. The largest bank, and the oldest still in existence, is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955. For many years the presidency banks acted as quasi-central banks, as did their successors, until the Reserve Bank of India was established in 1935. In 1969 the Indian government nationalized all the major banks that it did not already own and these have remained under government ownership. They are run under a structure know as 'profit-making public sector undertaking' (PSU) and are allowed to compete and operate as commercial banks. The Indian banking sector is made up of four types of banks, as well as the PSUs and the state banks, they have been joined since the 1990s by new private commercial banks and a number of foreign banks. Generally banking in India was fairly mature in terms of supply, product range and reach-even though reach in rural India and to the poor still remains a challenge. The government has developed initiatives to address this through the State Bank of India expanding its branch network and through the National Bank for Agriculture and Rural Development with things like microfinance. Indian Banking Industry currently employees 1,175,149 employees and has a total of 109,811 branches in India and 171 branches abroad and manages an aggregate deposit of 67504.54 billion (US$1.1 trillion or €840 billion) and bank credit of 52604.59 billion (US$870 billion or €650 billion). The net profit of the banks operating in India was 1027.51 billion (US$17 billion or €13 billion) against a turnover of 9148.59 billion (US$150 billion or €110 billion) for the financial year 2012-13.


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History:-In ancient India there is evidence of loans from the Vedic period (beginning 1750 BC). Later during the Maurya dynasty (321 to 185 BC), an instrument called adesha was in use, which was an order on a banker desiring him to pay the money of the note to a third person, which corresponds to the definition of a bill of exchange as we understand it today. During the Buddhist period, there was considerable use of these instruments. Merchants in large towns gave letters of credit to one another.[4]

Colonial era:- During the period of British rule merchants established the Union Bank of Calcutta in 1829, first as a private joint stock association, then partnership. Its proprietors were the owners of the earlier Commercial Bank and the Calcutta Bank, who by mutual consent created Union Bank to replace these two banks. In 1840 it established an agency at Singapore, and closed the one at Mirzapore that it had opened in the previous year. Also in 1840 the Bank revealed that it had been the subject of a fraud by the bank's accountant. Union Bank was incorporated in 1845 but failed in 1848, having been insolvent for some time and having used new money from depositors to pay its dividends. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India, it was not the first though. That honour belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla. Foreign banks too started to appear, particularly in Calcutta, in the 1860s. The Comptoir d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondicherry, then a French possession, followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking centre. The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in 1895, which has survived to the present and is now one of the largest banks in India.Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians had established small banks, most of which served particular ethnic and religious communities. The presidency banks dominated banking in India but there were also some exchange banks and a number of Indian joint stock banks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally under capitalized and lacked the experience and maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon to observe, "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments." The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.ng".


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The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district. Four nationalized banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking During the First World War (1914–1918) through the end of the Second World War (1939–1945), and two years thereafter until the independence of India were challenging for Indian banking. The years of the First World War were turbulent, and it took its toll with banks simply collapsing despite the Indian economy gaining indirect boost due to war-related economic activities. At least 94 banks in India failed between 1913 and 1918 as indicated in the following table:

Years Number of banksthat failed

Authorised Capital( Lakhs)

Paid-up Capital( Lakhs)

1913 12 274 35

1914 42 710 109

1915 11 56 5

1916 13 231 4

1917 9 76 25

1918 7 209 1


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Post-Independence:-The partition of India in 1947 adversely impacted the economies of Punjab and West Bengal, paralyzing banking activities for months. India's independence marked the end of a regime of the Laissez-faire for the Indian banking. The Government of India initiated measures to play an active role in the economic life of the nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged a mixed economy. This resulted into greater involvement of the state in different segments of the economy including banking and finance. The major steps to regulate banking included:•The Reserve Bank of India, India's central banking authority, was established in April 1935, but was nationalized on 1 January 1949 under the terms of the Reserve Bank of India (Transfer to Public Ownership) Act, 1948 (RBI, 2005b).•In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India".•The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors.


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Nationalization in the 1960s :-Despite the provisions, control and regulations of the Reserve Bank of India, banks in India except the State Bank of India (SBI), continued to be owned and operated by private persons. By the 1960s, the Indian banking industry had become an important tool to facilitate the development of the Indian economy. At the same time, it had emerged as a large employer, and a debate had ensued about the nationalization of the banking industry. Indira Gandhi, the then Prime Minister of India, expressed the intention of the Government of India in the annual conference of the All India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalization."[7] The meeting received the paper with enthusiasm.Thereafter, her move was swift and sudden. The Government of India issued an ordinance ('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969') and nationalized the 14 largest commercial banks with effect from the midnight of 19 July 1969. These banks contained 85 percent of bank deposits in the country.[7] Jayaprakash Narayan, a national leader of India, described the step as a "masterstroke of political sagacity." Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August 1969.A second dose of nationalization of 6 more commercial banks followed in 1980. The stated reason for the nationalization was to give the government more control of credit delivery. With the second dose of nationalization, the Government of India controlled around 91% of the banking business of India. Later on, in the year 1993, the government merged New Bank of India with Punjab National Bank. It was the only merger between nationalized banks and resulted in the reduction of the number of nationalized banks from 20 to 19. After this, until the 1990s, the nationalized banks grew at a pace of around 4%, closer to the average growth rate of the Indian economy


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Liberalization in the 1990s In the early 1990s, the then government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, UTI Bank (since renamed Axis Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks. The next stage for the Indian banking has been set up with the proposed relaxation in the norms for foreign direct investment, where all foreign investors in banks may be given voting rights which could exceed the present cap of 10% at present. It has gone up to 74% with some restrictions. The new policy shook the Banking sector in India completely. Bankers, till this time, were used to the 4–6–4 method (borrow at 4%; lend at 6%; go home at 4) of functioning. The new wave ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this led to the retail boom in India. People demanded more from their banks and received more.


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Current periodAll banks which are included in the Second Schedule to the Reserve Bank of India Act, 1934 are Scheduled Banks. These banks comprise Scheduled Commercial Banks and Scheduled Co-operative Banks. Scheduled Commercial Banks in India are categorized into five different groups according to their ownership and/or nature of operation. These bank groups are:State Bank of India and its AssociatesNationalized BanksPrivate Sector BanksForeign BanksRegional Rural Banks.In the bank group-wise classification, IDBI Bank Ltd. is included in Nationalized Banks. Scheduled Co-operative Banks consist of Scheduled State Co-operative Banks and Scheduled Urban Cooperative Banks.Growth of Banking in India of Scheduled Commercial Banks


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Indicators31 March of

2005 2006 2007 2008 2009 2010 2011 2012 2013

Number of Commercial Banks 284 218 178 169 166 163 163 169 151

Number of Branches 70,373 72,072 74,653 78,787 82,897 88,203 94,019 102,377 109,811

Population per Banks (in thousands) 16 16 15 15 15 14 13 13 12

Aggregate Deposits17002 billion (US$280 billion)

21090 billion (US$350 billion)







67504.54 billion (US$1.1 trillion)

Bank Credit11004 billion (US$180 billion)









Deposit as percentage to GNP (at factor cost) 62% 64% 69% 73% 77% 78% 78% 78% 79%

Per Capita Deposit 16281 (US$270) 19130 (US$320) 23382 (US$390) 28610 (US$470) 33919 (US$560) 39107 (US$650) 45505 (US$760) 50183 (US$830) 56380 (US$940)

Per Capita Credit 10752 (US$180) 13869 (US$230) 17541 (US$290) 21218 (US$350) 24617 (US$410) 28431 (US$470) 34187 (US$570) 38874 (US$650) 44028 (US$730)

Credit Deposit Ratio 63% 70% 74% 75% 74% 74% 76% 79% 79%

http://en.wikipedia.org/wiki/Gross_national_product


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By 2010, banking in India was generally fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect M&As, takeovers, and asset sales. In March 2006, the Reserve Bank of India allowed Warburg Pincus to increase its stake in Kodak Mahindra Bank (a private sector bank) to 10%. This is the first time an investor has been allowed to hold more than 5% in a private sector bank since the RBI announced norms in 2005 that any stake exceeding 5% in the private sector banks would need to be vetted by them.In recent years critics have charged that the non-government owned banks are too aggressive in their loan recovery efforts in connexion with housing, vehicle and personal loans. There are press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide.


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Adoption of banking technologyThe IT revolution has had a great impact on the Indian banking system. The use of computers has led to the introduction of online banking in India. The use of computers in the banking sector in India has increased many fold after the economic liberalization of 1991 as the country's banking sector has been exposed to the world's market. Indian banks were finding it difficult to compete with the international banks in terms of customer service, without the use of information technology.The RBI set up a number of committees to define and co-ordinate banking technology. These have included:In 1984 was formed the Committee on Mechanization in the Banking Industry (1984) whose chairman was Dr. C Rangarajan, Deputy Governor, Reserve Bank of India. The major recommendations of this committee were introducing MICR technology in all the banks in the metropolises in India.[12] This provided for the use of standardized cheque forms and encoders.In 1988, the RBI set up the Committee on Computerization in Banks (1988) headed by Dr. C Rangarajan. It emphasized that settlement operation must be computerized in the clearing houses of RBI in Bhubaneswar, Guwahati, Jaipur, Patna and Thiruvananthapuram. It further stated that there should be National Clearing of inter-city cheques at Kolkata, Mumbai, Delhi, Chennai and MICR should be made operational. It also focused on computerization of branches and increasing connectivity among branches through computers. It also suggested modalities for implementing on-line banking. The committee submitted its reports in 1989 and computerization began from 1993 with the settlement between IBA and bank employees' associations.In 1994, the Committee on Technology Issues relating to Payment systems, Cheque Clearing and Securities Settlement in the Banking Industry (1994) was set up under Chairman W S Saraf. It emphasized Electronic Funds Transfer (EFT) system, with the BANKNET communications network as its carrier. It also said that MICR clearing should be set up in all branches of all those banks with more than 100 branches.In 1995, the Committee for proposing Legislation on Electronic Funds Transfer and other Electronic Payments (1995) again emphasized EFT system.The total number of automated teller machines (ATMs) installed in India by various banks as of end June 2012 is 99,218.The new private sector banks in India have the most ATMs, followed by off-site ATMs belonging to SBI and its subsidiaries and then by nationalized banks and foreign banks, while on-site is highest for the nationalized banks of India.Branches and ATMs of Scheduled Commercial Banks as of end March 2005


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Bank type Number of branches On-site ATMs Off-site ATMs Total ATMs

Nationalized banks 33,627 38,606 22,265 60,871

State Bank of India 13,661 28,926 22,827 51,753

Old private sector banks 4,511 4,761 4,624 9,385

New private sector banks 1,685 12,546 26,839 39,385

Foreign banks 242 295 854 1,149

TOTAL 53,726 85,134 77,409 1,62,543


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Expansion of banking infrastructure

As per the census of 2011, 58.7% of households are availing banking services in the country. There are 102,343 branches of Scheduled Commercial Banks (SCBs) in the country, out of which 37,953 (37%) bank branches are in the rural areas and 27,219 (26%) in semi-urban areas, constituting 63% of the total numbers of branches in semi-urban and rural areas of the country. However, a significant proportion of the households, especially in rural areas, are still outside the formal fold of the banking system. To extend the reach of banking to those outside the formal banking system, Government and Reserve Bank of India (RBI) are taking various initiatives from time to time some of which are enumerated below:Opening of bank branches: Government had issued detailed strategy and guidelines on Financial Inclusion in October 2011, advising banks to open branches in all habitations of 5,000 or more population in under-banked districts and 10,000 or more population in other districts. Out of 3,925 such identified villages/habitations, branches have been opened in 3,402 villages/habitations (including 2,121 Ultra Small Branches) by end of April, 2013.Each household to have at least one bank account: Banks have been advised to ensure service area bank in rural areas and banks assigned the responsibility in specific wards in urban area to ensure that every household has at least one bank account. Business Correspondent model: With the objective of ensuring greater financial inclusion and increasing the outreach of the banking sector, banks were permitted by RBI in 2006 to use the services of intermediaries in providing financial and banking services through the use of Business Facilitators (BFs) and Business Correspondents (BCs). Business correspondents are retail agents engaged by banks for providing banking services at locations other than a bank branch/ATM. BCs and the BC agents (BCAs) represent the bank concerned and enable a bank to expand its outreach and offer limited range of banking services at low cost, particularly where setting up a brick and mortar branch is not viable. BCs as agents of the banks, thus, are an integral part of the business strategy for achieving greater financial inclusion. Banks had been permitted to engage individuals/entities as BC like retired bank employees, retired teachers, retired government Banks had been permitted to engage individuals/entities as BC like retired bank employees, retired teachers, retired government individual ,Public Call Office (PCO) operators, agents of Small Savings Schemes of Government of India, insurance companies, etc. Further, since September 2010,


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RBI had permitted banks to engage "for profit" companies registered under the Indian Companies Act, 1956, excluding Non-Banking Financial Companies (NBFCs), as BCs in addition to individuals/entities permitted earlier. According to the data maintained by RBI, as in December, 2012, there were over 152,000 BCs deployed by Banks. During 2012-13, over 183.8 million transactions valued at 165 billion (US$2.7 billion) had been undertaken by BCs till December 2012.Swabhimaan Campaign: Under "Swabhimaan" - the Financial Inclusion Campaign launched in February 2011, banks had provided banking facilities by March, 2012 to over 74,000 habitations having population in excess of 2000 using various models and technologies including branchless banking through Business Correspondents Agents (BCAs). Further, in terms of Finance Minister's Budget Speech 2012-13, the "Swabhimaan" campaign has been extended to habitations with population of more than 1,000 in North Eastern and Hilly States and to habitations which have crossed population of 1,600 as per census 2001. About 40,000 such habitations have been identified to be covered under the extended "Swabhimaan" campaign.Setting up of ultra-small branches (USBs): Considering the need for close supervision and mentoring of the Business Correspondent Agents (BCAs) by the respective banks and to ensure that a range of banking services are available to the residents of such villages, Ultra Small Branches (USBs) are being set up in all villages covered through BCAs under Financial Inclusion. A USB would comprise a small area of 100 sq ft (9.3 m2) - 200 sq ft (19 m2) where the officer designated by the bank would be available with a laptop on pre-determined days. While the cash services would be offered by the BCAs, the bank officer would offer other services, undertake field verification and follow up on the banking transactions. The periodicity and duration of visits can be progressively enhanced depending upon business potential in the area. A total of over 50,000 USBs have been set up in the country by March 2013.Banking facilities in Unbanked Blocks: All the 129 unbanked blocks (91 in North East States and 38 in other States) identified in the country in July 2009, had been provided with banking facilities by March 2012, either through Brick Mortar Branch or Business Correspondents or Mobile van. As a next step it has been advised to cover all those blocks with BCA and Ultra Small Branch which have so far been covered by mobile van only.USSD Based Mobile Banking: National Payments Corporation of India (NPCI) worked upon a "Common USSD Platform" for all banks and telcos who wish to offer the facility of Mobile Banking using Unstructured Supplementary Service Data (USSD) based Mobile Banking. The Department helped NPCI to get a common USSD Code *99# for all telcos. More than 20 banks have joined the National Uniform USSD Platform (NUUP) of NPCI and the product has been launched by NPCI with BSNL and MTNL. Other telcos are likely to join in the near future. USSD based Mobile Banking offers basic Banking facilities like Money Transfer, Bill Payments, Balance Enquiries, Merchant Payments etc. on a simple GSM based Mobile phone, without the need to download application on a phone as required at present in the IMPS based Mobile Banking.


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Steps taken by Reserve Bank of India (RBI) to strengthen the banking infrastructure

RBI has permitted domestic Scheduled Commercial Banks (excluding RRBs) to open branches in tier 2 to tier 6 cities (with population up to 99,999 as per census 2001) without the need to take permission from RBI in each case, subject to reporting.RBI has also permitted SCBs (excluding RRBs) to open branches in rural, semi-urban and urban centers in North Eastern States and Sikkim without having the need to take permission from RBI in each case, subject to reporting.Regional Rural Banks (RRBs) are also allowed to open branches in Tier 2 to Tier 6 centers (with population up to 99,999 as per Census 2001) without the need to take permission from RBI in each case, subject to reporting, provided they fulfill the following conditions, as per the latest inspection report:

CRAR of at least 9%;Net NPA less than 5%;No default in CRR / SLR for the last year;Net profit in the last financial year;CBS compliant.

Domestic SCBs have been advised that while preparing their Annual Branch Expansion Plan (ABEP), they should allocate at least 25% of the total number of branches proposed to be opened during the year in unbanked Tier 5 and Tier 6 centers i.e. (population up to 9,999) centers which do not have a brick and mortar structure of any SCB for customer based banking transactions.RRBs have also been advised to allocate at least 25% of the total number of branches proposed to be opened during a year in unbanked rural (Tier 5 and Tier 6) Centers).New private sector banks are required to ensure that at least 25% of their total branches are in semi-urban and rural centers on an ongoing basis.


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IFSC IFSC stands for Indian Financial System Code. This concept was invented by Reserve Bank of India. This code is Alphanumerical, which contains alphabets and numbers. These twelve alphanumerical codes are allotted to every bank in India, and of course, these codes are unique. In this twelve character code, the first four characters mean the name of the bank. After this four character, you can see a zero another six characters represent branch code of the bank. This code is used by NEFT and RTGS for financial transfer system. You can see code is printed on every check issued by banks. RBI also provided a list of banks and this unique code online for individuals and business people. For better banking services, especially for online payment this code is must. Banks that don’t use this code are liable for legal action against them. Uses of IFSC Code: This code is helpful in transferring money from one bank to another bank online in real time. This is not only used by individuals but also big companies. This code helps to transfer money easily to the person who holds account in any bank across India. This way of transferring funds is available around the clock all you need to have is that you must add beneficiary name and his account number along with IFSC code for quick transfer of money. It takes 24hrs of times to get confirmation once beneficiary successfully added. This quick way of transferring money avoids complications that lead to big problems to banks.


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Using this code is must for every individual to transfer money immediately to friends who have account in same bank or other bank. Money gets transferred right away if money is transferred to the same bank. If it is other banks, it normally takes 24hrs of time but this assures safety. This method of transferring money reduces a human effort, especially for individual as he doesn’t have to walk to the person to give money. He can be just simply open online banking with given ID and password and transfer. You are taking chances if you are taking money in your pocket and walking to the counter to make payments. This code reduces all above risks and helps you in safe banking. IFSC code reduces much of human effort and eventually helps people to save a lot of money and time. This is how RBI reduced efforts of banks and individual to happen payments and fund's transfer in short period of time. Since this code was invented every individual, professionals and business people had taken the advantage of this code and enjoyed its advantages.


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LIST OF BANKS IN INDIA


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RESERVE BANK OF INDIA The 'Reserve Bank of India is India's Central Banking Institution, which controls the Monetary Policy of the Indian Rupee. on 1 April 1935 during the British Rule in accordance with the provisions of the Reserve Bank of India Act, 1934. The original share capital was divided into shares of 100 each fully paid, which were initially owned entirely by private shareholders. Following India's independence on 15 - August - 1947, the RBI was nationalized in the year of 1949.The RBI plays an important part in the Development Strategy of the Government of India. It is a member bank of the Asian Clearing Union. The general superintendence and direction of the RBI is entrusted with the 21-member Central Board of Directors: the Governor (currently Dr. Raghuram Rajan), 4 Deputy Governors, 2 Finance Ministry representatives, 10 government-nominated directors to represent important elements from India's economy, and 4 directors to represent local boards headquartered at Mumbai, Kolkata, Chennai and New Delhi. Each of these local boards consists of 5 members who represent regional interests, as well as the interests of co-operative and indigenous banks.The bank is also active in promoting financial inclusion policy and is a leading member of the Alliance for Financial Inclusion (AFI).


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History OF RBI :- 1935–1950The Reserve Bank of India was founded on 1 April 1935 to respond to economic troubles after the First World War. RBI was conceptualized as per the guidelines, working style and outlook presented by Dr Ambedkar as written in his book “The Problem of the Rupee – Its origin and its solution.” in front of the Hilton Young Commission . The bank was set up based on the recommendations of the 1926 Royal Commission on Indian Currency and Finance, also known as the Hilton–Young Commission. The original choice for the seal of RBI was The East India Company Double Mohur, with the sketch of the Lion and Palm Tree. However it was decided to replace the lion with the tiger, the national animal of India. The Preamble of the RBI describes its basic functions to regulate the issue of bank notes, keep reserves to secure monetary stability in India, and generally to operate the currency and credit system in the best interests of the country. The Central Office of the RBI initially established in Calcutta (now Kolkata), but was permanently moved to Bombay (now Mumbai) in 1937. The RBI also acted as Burma's central bank, except during the years of the Japanese occupation of Burma (1942–45), until April 1947, even though Burma seceded from the Indian Union in 1937. After the Partition of India in 1947, the Bank served as the central bank for Pakistan until June 1948 when the State Bank of Pakistan commenced operations. Though originally set up as a shareholders’ bank, the RBI has been fully owned by the Government of India since its nationalization in 1949.


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1950–1960In the 1950s the Indian government, under its first Prime Minister Jawaharlal Nehru, developed a centrally planned economic policy that focused on the agricultural sector. The administration nationalized commercial banks and established, based on the Banking Companies Act of 1949 (later called the Banking Regulation Act), a central bank regulation as part of the RBI. Furthermore, the central bank was ordered to support the economic plan with loans.1960–1969As a result of bank crashes, the RBI was requested to establish and monitor a deposit insurance system. It should restore the trust in the national bank system and was initialized on 7 December 1961. The Indian government found funds to promote the economy and used the slogan "Developing Banking". The government of India restructured the national bank market and nationalized a lot of institutes. As a result, the RBI had to play the central part of control and support of this public banking sector.1969–1985In 1969, the Indira Gandhi-headed government nationalized 14 major commercial banks. Upon Gandhi's return to power in 1980, a further six banks were nationalized. The regulation of the economy and especially the financial sector was reinforced by the Government of India in the 1970s and 1980s. The central bank became the central player and increased its policies for a lot of tasks like interests, reserve ratio and visible deposits. These measures aimed at better economic development and had a huge effect on the company policy of the institutes. The banks lent money in selected sectors, like agri-business and small trade companies.The branch was forced to establish two new offices in the country for every newly established office in a town. The oil crises in 1973 resulted in increasing inflation, and the RBI restricted monetary policy to reduce the effects.


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1985–1991 A lot of committees analysed the Indian economy between 1985 and 1991. Their results had an effect on the RBI. The Board for Industrial and Financial Reconstruction, the Indira Gandhi Institute of Development Research and the Security & Exchange Board of India investigated the national economy as a whole, and the security and exchange board proposed better methods for more effective markets and the protection of investor interests. The Indian financial market was a leading example for so-called "financial repression" (Mackinnon and Shaw). The Discount and Finance House of India began its operations on the monetary market in April 1988; the National Housing Bank, founded in July 1988, was forced to invest in the property market and a new financial law improved the versatility of direct deposit by more security measures and liberalization.1991–2000 The national economy came down in July 1991 and the Indian rupee was devalued . The currency lost 18% relative to the US dollar, and the Narsimham Committee advised restructuring the financial sector by a temporal reduced reserve ratio as well as the statutory liquidity ratio. New guidelines were published in 1993 to establish a private banking sector. This turning point should reinforce the market and was often called neo-liberal. The central bank deregulated bank interests and some sectors of the financial market like the trust and property markets. This first phase was a success and the central government forced a diversity liberalization to diversify owner structures in 1998. The National Stock Exchange of India took the trade on in June 1994 and the RBI allowed nationalized banks in July to interact with the capital market to reinforce their capital base. The central bank founded a subsidiary company—the Bharatiya Reserve Bank Note Mudran Private Limited—in February 1995 to produce banknotes.Since 2000 The Foreign Exchange Management Act from 1999 came into force in June 2000. It should improve the item in 2004–2005 (National Electronic Fund Transfer).The Security Printing & Minting Corporation of India Ltd., a merger of nine institutions, was founded in 2006 and produces banknotes and coins.The national economy's growth rate came down to 5.8% in the last quarter of 2008–2009 and the central bank promotes the economic development.In August 2014, The RBI has introduced a liquidity framework for cash management to ensure reduced volatility. It has informally communicated to banks asking them to manage their treasury operations.


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Central Board of Directors The Central Board of Directors is the main committee of the Central Bank. The Government of India appoints the directors for a 4-year term. The Board consists of a Governor, and not more than 4 Deputy Governors, 15 Directors to represent the regional boards, 2 from the Ministry of Finance and 10 other directors from various fields.Governors The current Governor of RBI is Raghuram Rajan. There are 4 Deputy Governors, Deputy Governor H R Khan, Dr Urjit Patel, R Gandhi and SS Mundra. Dr. Urjit Patel became Deputy Governor in January 2013. One of the four Deputy Governors is traditionally from RBI ranks, and is selected from the Bank's Executive Directors. As for the rest, one is nominated from among the Chairpersons of Public Sector Bank, and the other is an economist of repute . It is also often seen that an officer of Indian Administrative Service is appointed Deputy Governor of RBI and later as the Governor of RBI. The case of Y. Venugopal Reddy, an officer of Indian Administrative Service batch of 1964 is a noted example for this trend in the RBI.Supportive bodies The Reserve Bank of India has four regional representations: North in New Delhi, South in Chennai, East in Kolkata and West in Mumbai. The representations are formed by five members, appointed for four years by the central government and serve—beside the advice of the Central Board of Directors—as a forum for regional banks and to deal with delegated tasks from the central board. The institution has 22 regional offices.The Board of Financial Supervision (BFS), formed in November 1994, serves as a CCBD committee to control the financial institutions. It has four members, appointed for two years, and takes measures to strength the role of statutory auditors in the financial sector, external monitoring and internal controlling systems.The Tarapore committee was set up by the Reserve Bank of India under the chairmanship of former RBI deputy governor S.S.Tarapore to "lay the road map" to capital account convertibility. The five-member committee recommended a three-year time frame for complete convertibility by 1999–2000.On 1 July 2007, in an attempt to enhance the quality of customer service and strengthen the grievance redressal mechanism, the Reserve Bank of India created a new customer service department.


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Offices and branchesThe Reserve Bank of India has four zonal offices. It has 19 regional offices at most state capitals and at a few major cities in India. Few of them are located in Ahmedabad, Bangalore, Bhopal, Bhubaneswar, Chandigarh, Chennai, Delhi, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kolkata, Lucknow, Mumbai, Nagpur, Patna, and Thiruvananthapuram. It also has 9 sub-offices located in Agartala, Dehradun, Gangtok, Kochi, Panaji, Raipur, Ranchi, Shillong, Shimla and Srinagar.The bank has also two training colleges for its officers, viz. Reserve Bank Staff College at Chennai and College of Agricultural Banking at Pune. There are also four Zonal Training Centre's at Mumbai, Chennai, Kolkata and New Delhi.MAIN FUNCTIONS :-Bank of IssueUnder Section 22 of the Reserve Bank of India Act 1934, the Bank has the sole right to issue bank notes of all denominations.(except one rupee notes and coins, which were issued by the Ministry of finance, and now is stopped from being issued.).The distribution of one rupee notes and coins and small coins all over the country is undertaken by the Reserve Bank as agent of the Government. The Reserve Bank has a separate Issue Department which is entrusted with the issue of currency notes. The assets and the liabilities of the Issue Department are kept separate from those of the Banking Department.


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Regulator and supervisor of the financial systemThe institution is also the regulator and supervisor of the financial system and prescribes broad parameters of banking operations within which the country's banking and financial system functions. Its objectives are to maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to the public. The Banking Ombudsman Scheme has been formulated by the Reserve Bank of India (RBI) for effective addressing of complaints by bank customers. The RBI controls the monetary supply, monitors economic indicators like the gross domestic product and has to decide the design of the rupee banknotes as well as coins.Managerial of exchange controlThe central bank manages to reach the goals of the Foreign Exchange Management Act, 1999. Objective: to facilitate external trade and payment and promote orderly development and maintenance of foreign exchange market in India.Issuer of currencyThe bank issues and exchanges or destroys currency notes and coins that are not fit for circulation. The objectives are giving the public adequate sups of RBI are to issue bank notes, to maintain the currency and credit system of the country to utilize it in its best advantage, and to maintain the reserves. RBI maintains the economic structure of the country so that it can achieve the objective of price stability as well as economic development, because both objectives are diverse in themselves. For printing of notes, the Security Printing and Minting Corporation of India Limited (SPMCIL), a wholly owned company of the Government of India, has set up printing presses at Nashik, Maharashtra and Dewas, Madhya Pradesh. The Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL), a wholly owned subsidiary of the Reserve Bank, also has set up printing presses at Mysore in Karnataka and Salboni in West Bengal. In all, there are four printing presses. And for minting of coins, SPMCIL has four mints at Mumbai, Noida (UP), Kolkata and Hyderabad for coin production.


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Banker of Banks RBI also works as a central bank where commercial banks are account holders and can deposit money.RBI maintains banking accounts of all scheduled banks. Commercial banks create credit. It is the duty of the RBI to control the credit through the CRR, bank rate and open market operations. As banker's bank, the RBI facilitates the clearing of cheques between the commercial banks and helps inter-bank transfer of funds. It can grant financial accommodation to schedule banks. It acts as the lender of the last resort by providing emergency advances to the banks. It supervises the functioning of the commercial banks and take action against it if need arises.Detection of Fake currencyIn order to curb the fake currency menace, RBI has launched a website to raise awareness among masses about fake notes in the market.www.paisaboltahai.rbi.org.in provides information about identifying fake currency. On January 22, 2014; RBI gave a press release stating that after March 31, 2014, it will completely withdraw from circulation all banknotes issued prior to 2005. From April 1, 2014, the public will be required to approach banks for exchanging these notes. Banks will provide exchange facility for these notes until further communication. The Reserve Bank has also clarified that the notes issued before 2005 will continue to be legal tender. This would mean that banks are required to exchange the notes for their customers as well as for non-customers. From July 1, 2014, however, to exchange more than 10 pieces of `500 and `1000 notes, non-customers will have to furnish proof of identity and residence to the bank branch in which she/he wants to exchange the notes. This move from the Reserve Bank is expected to unearth black money held in cash. As the new currency notes have added security features, they would help in curbing the menace of fake currency.


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Developmental roleThe central bank has to perform a wide range of promotional functions to support national objectives and industries. The RBI faces a lot of inter-sector and local inflation-related problems. Some of this problems are results of the dominant part of the public sector. Related functionsThe RBI is also a banker to the government and performs merchant banking function for the central and the state governments. It also acts as their banker. The National Housing Bank (NHB) was established in 1988 to promote private real estate acquisition. The institution maintains banking accounts of all scheduled banks, too. RBI on 7 August 2012 said that Indian banking system is resilient enough to face the stress caused by the drought like situation because of poor monsoon this year.

Policy Rates and Reserve Ratios :-Policy Rates, Reserve Ratios, Lending and Deposit Rates as of July 15, 2014

RATES PERCENTAGE

Bank Rate 9.00%

Repo Rate 8.00%

Reverse Repo Rate 7.00%

Cash Reserve Ratio (CRR) 4%

Statutory Liquidity Ratio (SLR) 22.00%

Base Rate 10.00%–10.25%

Savings Deposit Rate 4%

Term Deposit Rate 8.00%–9.5%


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Bank RateRBI lends (no collateral required for long term lendings) to the commercial banks through its discount window to help the banks meet depositor’s demands and reserve requirements for long term. The Interest rate the RBI charges the banks for this purpose is called bank rate. If the RBI wants to increase the liquidity and money supply in the market, it will decrease the bank rate and if RBI wants to reduce the liquidity and money supply in the system, it will increase the bank rate. The Bank Rate has lost its significance as a monetary policy tool as the central bank presently signals stance through changes in repo, the rate at which banks borrow short-term funds from RBI. The Bank Rate, which is the standard rate at which the RBI buys or re-discount bills of exchange or other commercial paper, is presently used asReserve requirement cash reserve ratio (CRR)Every commercial bank has to keep certain minimum cash reserves with RBI. Consequent upon amendment to sub-Section 42(1), the Reserve Bank, having regard to the needs of securing the monetary stability in the country, RBI can prescribe Cash Reserve Ratio (CRR) for scheduled banks without any floor rate or ceiling rate, [Before the enactment of this amendment, in terms of Section 42(1) of the RBI Act, the Reserve Bank could prescribe CRR for scheduled banks between 5% and 20% of total of their demand and time liabilities]. RBI uses this tool to increase or decrease the reserve requirement depending on whether it wants to effect a decrease or an increase in the money supply. An increase in Cash Reserve Ratio (CRR) will make it mandatory on the part of the banks to hold a large proportion of their deposits in the form of deposits with the RBI. This will reduce the size of their deposits and they will lend less. This will in turn decrease the money supply. The current rate is 4.00%.. -25 basis points cut in Cash Reserve Ratio(CRR) on 17 September 2012, It will release Rs 17,000 crore into the system/Market. The RBI lowered the CRR by 25 basis points to 4.25% on 30 October 2012, a move it said would inject about 175 billion rupees into the banking system in order to pre-empt potentially tightening liquidity. The latest CRR is 4%


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Statutory Liquidity ratio (SLR)Apart from the CRR, banks are required to maintain liquid assets in the form of gold, cash and approved securities. Higher liquidity ratio forces commercial banks to maintain a larger proportion of their resources in liquid form and thus reduces their capacity to grant loans and advances, thus it is an anti-inflationary impact. A higher liquidity ratio diverts the bank funds from loans and advances to investment in government and approved securities . The latest SLR as on 8/8/14 is 22.00%. In well-developed economies, central banks use open market operations—buying and selling of eligible securities by central bank in the money market—to influence the volume of cash reserves with commercial banks and thus influence the volume of loans and advances they can make to the commercial and industrial sectors. In the open money market, government securities are traded at market related rates of interest. The RBI is resorting more to open market operations in the more recent years. Generally RBI uses three kinds of selective credit controls:Minimum margins for lending against specific securities.Ceiling on the amounts of credit for certain purposes.Discriminatory rate of interest charged on certain types of advances.Direct credit controls in India are of three types:Part of the interest rate structure i.e. on small savings and provident funds, are administratively set.Banks are mandatory required to keep 23% of their deposits in the form of government securities.Banks are required to lend to the priority sectors to the extent of 40% of their advances.Publications :-A report titled "Trend and Progress of Banking In India" is published annually, as required by the Banking Regulation Act of 1949. The report sums up trends and developments throughout the financial sector. Starting in April 2014, the Reserve Bank of India is sending out bi-monthly policy updates.


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RBI Governor RaghuramRajan(AN ARTICLE)“If you can keep your head when all about youAre losing theirs and blaming it on you;If you can trust yourself when all men doubt you,But make allowance for their doubting too:If you can wait and not be tired by waiting,Or being lied about, don't deal in lies,Or being hated don't give way to hating,And yet don't look too good, nor talk too wise”

From "If", a poem by Rudyard Kipling

The common goal [of the RBI and government] is growth with low inflation. But our view of the time frame in which we will achieve that and the necessities for that step can be different from that of the government


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Raghuram Govind Rajan cited excerpts from this famous poem by the acclaimed English writer on September 4, the day he took over as the 23rd governor of the Reserve Bank of India (RBI). The poem, he said, lists the requirements of an ideal central banker.

Rajan's reference to the poem in his maiden speech offers a glimpse into his mind - the mind of someone who is determined to do the right thing and not be cowed by criticism.

Whatever doubts remained about Rajan's stoutly independent nature evaporated into the air when Business Today met him at the RBI headquarters on South Mumbai's Shahid Bhagat Singh Marg after he announced the second quarter monetary policy review. Sitting comfortably in the 18th floor visitors' room, filled with portraits of previous RBI governors (his predecessor Duvvuri Subbarao's portrait has yet to be made), he wasted no time in asserting his autonomy. "Did you get a brief?" we ask, hoping to provoke Rajan, who has been handpicked for the job by Finance Minister P. Chidambaram, into saying something newsworthy. "Brief? From?" he shoots back with a stony face.


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No doubt, Rajan, who used to be Chidambaram's chief economic advisor, has the government's confidence. But relations between the RBI and the government have often been fraught with tension. Benegal Rama Rau, the fourth RBI governor, resigned abruptly in January 1957 due to differences with the then finance minister T.T. Krishnamachari. Even Subbarao shared an uneasy relationship with the finance ministry. Last year, Chidambaram famously said he would "walk alone" to revive economic growth if the RBI didn't offer any support.

And Subbarao took a dig at Chidambaram days before demitting office. "I do hope Finance Minister Chidambaram will one day say, 'I am often frustrated by the Reserve Bank, so frustrated that I want to go for a walk, even if I have to walk alone. But thank God, the Reserve Bank exists'," he said in August.

Expectations are high that Rajan will bridge the chasm between North Block, the seat of the finance ministry in New Delhi, and Mint Road, which houses the RBI in Mumbai. Rajan dismisses these chasm theories. He says the fact that Subbarao disagreed with his political masters shows the autonomy the central bank enjoys. Does that mean the RBI never listens to the finance ministry? "Of course not. You listen and accommodate [the government's views] where necessary. Where you think you are on a different path, you try and distance yourself or you try and convince the other," he says.

Inflation Hawk?In his first two months in office, Rajan has asserted his independence. Although the government would have preferred a reduction in interest rates to boost the slowing economy, Rajan has instead raised the main lending rate twice to tame inflationary expectations. The repo rate, at which the RBI lends money to banks, now stands at 7.75 per cent from 7.25 per cent before he took over. Markets have branded him, like Subbarao, an inflation hawk.


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Subbarao increased the repo rate a record 13 times, from 4.75 per cent to 8.5 per cent, between March 2010 and October 2011. Inflation still remains high - headline inflation based on wholesale prices has averaged 8.6 per cent in the past three years (see Stubborn Inflation). And growth has slumped. The Indian economy expanded five per cent in 2012/13, the slowest pace in a decade. Rate hikes are, of course, not the only reason for slowing growth. Supply-side bottlenecks and the government's failure to take reform measures are responsible as well.

So, is Rajan really the inflation hawk he is made out to be? On leave from his tenure as professor of finance at the University of Chicago, Rajan believes low inflation is a prerequisite for long-term sustainable growth. The battle against inflation is not the RBI's alone, he emphasises. "This fight is for everybody. Not just us, not just the government, but also the private sector," says Rajan. "The common goal [of the RBI and the government] is growth with low inflation. But our view of the time frame in which we will achieve that and the necessities for that step can be different from that of the government."


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Industry has criticised the rate hikes. "This [high inflation] is a supply-side issue and raising interest rates would hurt growth," says Chandrajit Banerjee, Director General at the Confederation of Indian Industry. But Rajan has plenty of supporters as well. "We had earlier attacked inflation more and kept liquidity tight. Rajan thinks both inflation and growth can be tackled simultaneously," says Vishwavir Ahuja, Managing Director and CEO at Ratnakar Bank. "That is a positive shift."

Chakravarthi Rangarajan, who also focused on price stability during his tenure as RBI governor in the 1990s, says there is always a dilemma between growth and inflation. "People were critical of me, but I broke inflation's back. I took the position that we have to increase interest rates," recalls Rangarajan, who now heads the Prime Minister's Economic Advisory Council.

Baptism by fireRajan, who at 50 is the second-youngest governor in the RBI's history (Prime Minister Manmohan Singh was the youngest), took over at a time when authorities were struggling to stabilise financial markets. The rupee was plunging to daily record lows against the dollar. Some even talked of the foreign exchange reserves crisis like the one India faced in 1991. Rajan's appointment itself had a soothing effect on the markets. Investors cheered the entry into the RBI of the former International Monetary Fund chief economist who famously predicted the 2008 economic meltdown three years earlier before it struck the world. "At the global level a lot of people have faith in him because he has interacted with them at the IMF," says Kaku Nakhate, India country head at Bank of America. "Big investors really talk to him."

Rajan took a number of steps to control the rupee's slide. At a time when foreign fund inflow had slowed down and the government was contemplating a sovereign bond issue, Rajan opened a swap window for deposits from non-resident Indians. The swap window has attracted $12 billion in just two months. He also allowed banks to borrow more overseas. These measures, along with easing worries of a US strike on Syria and the continuation of the US Federal Reserve's steps to revive its economy, have helped stabilise the rupee. The local currency is now trading around 61 to a dollar compared with the record low of 68.86 it touched on August 28.


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Rajan is also normalizing monetary policy operations by making the repo rate the most important tool to signal interest rates, moving away from levers such as the more expensive marginal standing facility (MSF). Before he took over at the RBI, the difference between the repo rate and the MSF, the rate at which banks borrow from the RBI as the last resort, had widened to 300 basis points. This had prompted large banks such as State Bank of India and ICICI Bank to increase their base lending rates, even though the repo rate was not increased. Rajan slashed the MSF rate in three phases and raised the repo rate, bringing the gap now to the normal level of 100 basis points. What industry needs in the short term, says YES Bank founder and CEO Rana Kapoor, is "confidence, conviction and communication" from the central bank. Glenn Maguire, Chief Economist for Asia Pacific at ANZ Economic Research, says Rajan has brought two powerful characteristics to the RBI - accessibility and transparency. "The simpler monetary policy approach aligned with these characteristics has been a key factor behind less market volatility, thus contributing to rupee stabilization," says Maguire.No Face book 'likes'A big task before Rajan is managing people's expectations. He knows some of his actions - like the recent rate hikes - will be unpopular. But he is undeterred. "The governorship of the central bank is not meant to win one votes or Face book 'likes'," he said in his maiden speech. North Block mandarins say Rajan, who they describe as amiable and not very bureaucratic, has asked finance ministry officials to not speak publicly on his monetary policy, which is what primarily ruined Subbarao's tenure. So far, nobody from the government has commented on Rajan's two monetary policy reviews.

We need to draw a balance between innovation and regulation. Rajan is trying to ensure a proper mix: C. Rangarajan, Chairman, Prime Minister's

Economic Advisory Council


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Rajan has many other issues on his agenda, and he is fixing strict timelines to achieve the goals. He plans, for instance, to sell inflation-indexed bonds to retail investors by December. He has talked about inclusive growth and development as one of the mandates of the RBI. "We need to draw a balance between innovation and regulation. Rajan is trying to ensure a proper mix," says Rangarajan.

Banking sector reform is high on Rajan's priorities. He wants to issue new banking licences by January, though he had previously opposed the entry of large corporate houses into the banking sector. He is also looking to treat foreign banks on a par with Indian banks in terms of branch expansion. Ahuja of Ratnakar Bank says long before Rajan took over as RBI governor he had outlined the future architecture of banking in India. "Rajan has indicated the kind of banks that we must have - a few large Indian multinational banks, a few large Indian domestic banks and another set of banks that are closer to customers which can serve the underprivileged sections," says Ahuja.

The new job is replete with challenges. Rajan has to tread carefully on the issue of separating the RBI's monetary policy operations from its government debt management function. In October he faced opposition to his idea of allowing foreign banks to acquire local lenders. The topic is sensitive, as India hasn't seen many mergers even among local banks. Rajan says easing takeover rules is "a possibility", but the RBI will first examine how foreign banks perform over time and whether further privileges are warranted. Rajan's growth report on Indian states, before he became the RBI chief, is also under criticism from regional parties. The report has put Maharashtra among the seven most developed states and Gujarat, home of the Bharatiya Janata Party's (BJP) prime ministerial candidate Narendra Modi, among the 11 less developed ones. Critics say being away from India for long could prove to be a big handicap for Rajan as he lacks adequate understanding of the political system. Rajan is quickly learning the ropes. He is brushing up his Hindi as well. Rajan's older sister, Jayashri Sridharan, who lives in Delhi, recollects how their parents had engaged a tutor to teach Hindi to their four children. "We used to run away at the sight of the tutor," she recalls with a smile.


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In August, after Rajan was named the central bank's chief, senior BJP leader Murli Manohar Joshi questioned how a foreigner could be appointed as the RBI governor. Rajan, who holds a US green card, has dismissed such queries. "The green card does not require you to take a pledge of allegiance anywhere... It simply is a work permit which you need to have to work in another country," he asserted on October 29 after announcing the second-quarter monetary policy review. Will he be able to navigate the political landscape while keeping the RBI's autonomy intact? This will be keenly watched in his three-year tenure. Rajan would surely love to end his innings at the RBI with another Kipling poem, "The Secret of The Machines":

"But remember, please,the Law by which we live,We are not built to comprehend a lie,We can neither love nor pity nor forgive,If you make a slip in handling us you die!

At the global level a lot of people have faith in him [Rajan] because he has interacted with them at the IMF: Kaku Nakhate, India country head, Bank of America


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This is a partial list of corporations engaged in banking business within the territory of India. There are currently nationalized banks in India.

Banks are classified under the heads :-

Nationalized banks / Public-sector banks SBI and associate banks

Regional rural banks Private-sector banks Foreign banks operating in India Foreign banks with business in India Foreign banks with representative offices in IndiaIndian banks with business outside India


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Allahabad BankAndhra

BankBank of BarodaBank of

IndiaBank of Maharasht

raBhartiya Mahila BankCanara BankCentral Bank of

IndiaCorporation Bank

Dena BankIDBI Bank

Indian BankIndian

Overseas BankOriental

Bank of CommercePunjab National

BankPunjab & Sind BankSyndicate

BankUCO BankUnion Bank of

IndiaUnited Bank of

IndiaVijaya BankSBI AND

ASSOCIATES


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SBI and associate banks

State Bank of IndiaState Bank of Bikaner & JaipurState Bank of HyderabadState Bank of MysoreState Bank of PatialaState Bank of TravancoreState Bank of Saurashtra (merged into SBI in 2008)State Bank of Indore (merged into SBI in 2010)


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Regional rural banks•Allahabad UP Gramin Bank •Andhra Pradesh Grameena Vikas Bank•Andhra Pragathi Grameena Bank•Arunachal Pradesh Rural Bank•Aryavart Gramin Bank•Assam Gramin Vikash Bank•Baitarani Gramya Bank•Ballia –Etawah Gramin Bank•Bangiya Gramin Vikash Bank•Baroda Gujarat Gramin Bank•Baroda Rajasthan Gramin Bank•Baroda Uttar Pradesh Gramin Bank•Bihar Kshetriya Gramin Bank•Cauvery Kalpatharu Grameena Bank•Chaitanya Godavari Grameena Bank•Chhattisgarh Gramin Bank•Chikmagalur-Kodagu Grameena Bank•Deccan Grameena Bank•Dena Gujarat Gramin Bank•Durg-Rajnandgaon Gramin Bank•Ellaquai Dehati Bank•Gurgaon Gramin Bank•Hadoti Kshetriya Gramin Bank•Haryana Gramin Bank

•Himachal Gramin Bank•Jaipur Thar Gramin Bank•Jhabua Dhar Kshetriya Gramin Bank•Jharkhand Gramin Bank•Kalinga Gramya Bank•Karnataka Vikas Grameena Bank•Kashi Gomti Samyut Gramin Bank•Kerala Gramin Bank•Krishna Grameena Bank•Kshetriya Kisan Gramin Bank•Langpi Dehangi Rural Bank•Madhumalti Building Gupte Marg•Madhya Bharat Gramin Bank•Madhya Bihar Gramin Bank•Mahakaushal Kshetriya Gramin Bank•Maharashtra Gramin Bank•Malwa Gramin Bank•Manipur Rural Bank•Marwar Ganganagar Bikaner Gramin Bank•Meghalaya Rural Bank•Mewar Anchalik Gramin Bank•Mizoram Rural Bank•Nagaland Rural Bank

•Uttrakhand Gramin Bank[1]

•Narmada Malwa Gramin Bank•Neelachal Gramya Bank•Pallavan Grama Bank•Pandyan Grama Bank•Parvatiya Gramin Bank•Paschim Banga Gramin Bank•Pragathi Gramin Bank•Prathama Bank•Puduvai Bharathiar Grama Bank•Pune District Central Cooperative Bank Ltd.•Punjab Gramin Bank•Purvanchal Gramin Bank•Rajasthan Gramin Bank Rewa-Sidhi Gramin Bank•Rushikulya Gramya Bank•Samastipur Kshetriya Gramin Bank•Saptagiri Grameena Bank•Sarva UP Gramin Bank•Satpura Narmada Kshetriya•Saurashtra Gramin Bank•Sharda Gramin Bank•Shreyas Gramin Bank•Surguja Kshetriya Gramin Bank•Sutlej Kshetriya Gramin Bank•Tripura Gramin Bank•Utkal Gramya Bank•Uttar Banga Kshetriya Gramin Bank•Uttar Bihar Gramin Bank•Vananchal Gramin Bank•Vidharbha Kshetriya Gramin Bank•Visveshvaraya Grameena Bank•Wainganga Krishna Gramin Bank


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Private-sector banks•Axis Bank•Catholic Syrian Bank•City Union Bank•Development Credit Bank•Dhanlaxmi Bank•Federal Bank•HDFC Bank•ICICI Bank•IndusInd Bank•ING Vysya Bank•Karnataka Bank•Karur Vysya Bank•Kotak Mahindra Bank•Lakshmi Vilas Bank•Nainital Bank•Tamilnadu Mercantile Bank•South Indian Bank•YES Bank•UP Agro Corporation Bank


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Foreign banks operating in India•Abu Dhabi Commercial Bank•Australia and New Zealand Bank•Bank International Indonesia•Bank of America NA•Bank of Bahrain and Kuwait•Bank of Ceylon•Bank of Nova Scotia (Scotia Bank)•Bank of Tokyo Mitsubishi UFJ•Barclays Bank PLC•BNP Paribas•Calyon Bank•Chinatrust Commercial Bank•Citibank N.A.•Credit Suisse•Commonwealth Bank of Australia (Recently Launched Retail Services in Mumbai)•DBS Bank•DCB Bank now RHB Bank

•Deutsche Bank AG•FirstRand Bank•HSBC•JPMorgan Chase Bank•Krung Thai Bank•Mashreq Bank psc•Mizuho Corporate Bank•Royal Bank of Scotland•Shinhan Bank•Société Générale•Sonali Bank•Standard Chartered Bank•State Bank of Mauritius•UBS•Woori Bank.


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Foreign banks with business in India•ABN AMRO Bank N.V. - Royal Bank of Scotland•Abu Dhabi Commercial Bank•American Express Bank•Antwerp Diamond Bank•Arab Bangladesh Bank•Bank International Indonesia•Bank of America•Bank of Bahrain and Kuwait•Bank of Ceylon•Bank of Nova Scotia•Bank of Tokyo Mitsubishi UFJ•Barclays Bank•BNP Paribas•Calyon Bank•Chinatrust Commercial Bank•Citibank•DBS Bank•Deutsche Bank•HSBC (Hongkong & Shanghai Banking Corporation)•JPMorgan Chase Bank•Krung Thai Bank•Mashreq Bank•Mizuho Corporate Bank•National Australia Bank•Shinhan Bank•Société Générale•Sonali Bank•Standard Chartered Bank•UBS


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Foreign banks with representative offices in IndiaAmerican Banks

American ExpressBank of New YorkWells Fargo BankNorthern Trust

Australian Banks Commonwealth BankWestpac Banking Corporation

Austrian Banks Raiffeisen Zentralbank

Belgian Banks Fortis BankKBC Bank

Canadian Banks Royal Bank of Canada

UAE Banks Emirates Bank International

French Banks Credit Industrial et CommercialNatixis

German Banks HypoVereinsbankCommerzbankDresdner BankDZ Bank AG Deutsche Zentral – Genossenschafts BankHSH NordbankLandesbank Baden-Württemberg

Irish Banks Depfa Bank

Italian Banks Banca IntesaBanca di RomaBanca SellaBanca Popolare di VeronaBanca Popolare di VicenzaUBI BancaMonte dei Paschi di SienaSanpaolo IMIUniCredit

Nepalese Banks Everest Bank

Portuguese Banks Caixa Geral de Depositos

Russian Banks VnesheconombankPromsvyazbank

South African banks First Rand Bank

South Korean Banks Woori Bank

Spanish Banks CaixabankBanco de SabadellBanco Bilbao Vizcaya Argentaria

Sri Lankan Banks Hatton National Bank

Swiss Banks Credit Suisse

Zurich Cantonal Bank


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Indian banks with business outside IndiaName of the Bank Name of the Centre

Andhra Bank Dubai, Malaysia

all India bank Hongkong

AXIS BANK Ltd. Hongkong, Singapore, Dubai, Sri-Lanka, United Kingdom

SBI (Canada) Ltd. Toronto, Vancouver, Mississauga

SBI (Japan) Ltd. Tokyo, Osaka

SBI (California) Ltd. Los Angeles, Artesia, San Jose (Silicon Valley)

SBI Finance Inc. Delaware, U.S.A.

SBI International (Mauritius) Mauritius (Off-shore Bank)

SBI (INDIA) Ltd. Shanghai

SBI (Singapore) Ltd. Singapore

Bank of Baroda (Uganda) Ltd. Uganda

Bank of Baroda (Kenya) Ltd. Kenya

Bank of Baroda (Ghana) Ltd. Accra, Ghana

Bank of Baroda (U.K.) Nominee Ltd. London, United Kingdom

Bank of Baroda (Hong Kong) Ltd. Hong Kong (Converted into Restricted Licensed Bank)


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Name of the Bank Name of the Centre

Bank of India (Japan) Ltd. Tokyo, Osaka

Bank of India Finance (Kenya) Ltd. Kenya

Canara Bank Hongkong, United Kingdom

IOB Properties Pte Ltd. Singapore

Bank of Baroda (Botswana) Ltd. Gaborone, Botswana

Bank of Baroda (Guyana) Inc. Georgetown, Guyana (South America)

ICICI Bank (U.K.) Ltd London (U.K.)

Bank of Baroda (Tanzania) Ltd. Tanzania

Bank of Baroda (United Arab Emirate) Dubai, Abu Dhabi, Ras Al Khaimah, Deira, Dammam, Salalah, Al Ain

Bank of Baroda Muscat, Oman

Bank of Baroda Brussels, Belgium

ICICI Bank Eurasia LLC Russia

PT Bank Indomonex Indonesia

Indian Ocean International Bank Ltd. (IOIB) Port Louis, Mauritius


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Name of the Bank Name of the Centre

Punjab National Bank International Limited (PNBIL) London, United Kingdom

Bank of Baroda (Trinidad and Tobago) Limited Trinidad & Tobago

PT Bank Swadesi Tbk Indonesia

Bank of Baroda (Trinidad and Tobago) Limited Trinidad & Tobago

Syndicate Bank United Kingdom

UCO Bank Hongkong, Singapore


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LIST OF TOP 15 NATIONALIZED BANKS IN

INDIAIn India, there are many banks operating in private as well as public sector. However, in this article we look at some of top nationalized banks in India.Although there are dozens of nationalized banks in India but here we will take about the top 15 nationalized banks in India. So you may miss some of the banks listed here.


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1. State Bank of

India

Establishing Year: SBI

founded on 1 July 1956 was actually Bank of Kolkata.

Arundhati Bhattacharya is the chairman.

Banking Services: Credit cards,

consumer banking, corporate banking,

finance and insurance,

investment banking, mortgage loans, private banking,

wealth management

Total Assets: $395 Billion, $25 Billion in Equity and over $40

Billion in Revenue and completely

owned by Government of

India

Headquarters & Employees:

Headquartered in Mumbai with over

300,000 employees

Website: www.sbi.co.in

2. Punjab National Bank

Establishing Year: Bank was founded by Lala

Lajpat Rai in 1895 and completely

owned by government of

India

Banking Services: Credit cards,

consumer banking, corporate banking,


investment banking, mortgage loans, private banking, private equity,

wealth management

Total Assets: $90 Billion total

assets, Revenue is over $9 Billion and Net income is

$1 Billion


Headquartered in New Delhi with

65,000 employees 6000 branches in 750+ cities with 80 million customers

Website: www.pnbindia.in/En/ui/Home.a

spx


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3. Bank of Baroda

Establishing Year: Bank of Baroda was

established in 20 July 1908 by

Maharaja Sayajirao Gaekwad and is a public company

Banking Services: Credit cards, consumer

banking, corporate banking, finance and insurance,

investment banking, mortgage

loans, private banking, private equity, wealth management

Total Assets: $74 Billion,

revenue is over $6 Billion and net income is $900 million


Headquartered in Vadodara with

over 4000 branches and 2000 ATMs

Website: www.bankofbar

oda.com

4. IDBI Bank

Establishing Year:

Established in July 1964 by an

Act of Parliament is 10th largest bank in the

world

Banking Services: consumer banking, corporate banking,


investment banking, mortgage loans, private banking, private equity,

wealth management,

Agriculture Loan

Total Assets: $52 billion,

revenue is $4.5 billion and net income is $300

million


Company is based in Mumbai with

over 15,000 employees and

2000 ATMs.

Website: www.idbi.com


84

6. Bank of India

Establishing Year: Bank of

India was established on 7 September 1906 and it is a state

owned commercial bank

Banking Services: Core Banking services are Commercial

Banking, Retail Banking, Private Banking, Asset Management,

Mortgages, Credit Cards

Total Assets: Total revenue is over $4 billion,

operating income of $900 million

and net income of around $400

million

Headquarters & Employees: Bank

is based in Mumbai with over

4500 branches and over 1000

ATMs all over India

Website: www.bankofindia.c

om

5. Syndicate

Bank

Establishing Year: Founded

in 1925 as Canara

industrial and Banking

syndicate by Upendra Pai

Banking Services:

Finance, insurance in health & life,

Consumer Banking, Corporate Banking,

Investment Banking,

Investment Management, Private Equity,


Total Assets: $56 Billion and $350

Million of net income


Headquartered in Manipal,

Karnataka, bank has over 26,000

employees

Website: www.syndicateb

ank.in


85

7. Canara Bank

Establishing Year: Canara

Bank was established in

year 1969 and a completely state

owned bank

Banking Services: Investment

Banking, Consumer Banking,

Commercial Banking, Retail Banking, Private Banking, Asset Management,

Pensions, Mortgages, Credit

Cards

Total Assets: $60 Billion, Revenue is over $6 billion and $550 million worth

of net income

Headquarters & Employees: Bank is headquartered

in Bangalore, India with over 45,000 employees and

over 4500 branches, 5500

ATMs

Website: Canarabank.in

8. Union Bank of

India

Establishing Year: UBI was

registered on 11 Nov 1919 as a

limited company and was

inaugurated by Mahatma Gandhi.

Banking Services: Consumer banking, corporate banking,

finance and insurance, investment banking,

mortgage loans, private banking,

private equity, wealth management,

Agriculture Loan

Total Assets: Total revenue is $3 billion and net income is over $400 million

Headquarters & Employees: Bank is based in Mumbai with

over 28,000 employees 4000+ ATMs and listed on Forbes 2000 list.

Website: www.unionbankofindia.c

o.in


86

9. Corporation

Bank


107 years ago on 12 March 1906 in Udupi, Karnataka

and is a public sector bank

Banking Services: Core

Banking services are Commercial Banking, Retail Banking, Private Banking, Asset Management,


Total Assets: Total deposits of the bank is Rs

1,66 ,000 Crore, net profit is Rs 1500 Crore and

operating profit is 3000 Crore


Headquartered in Mangalore,

Karnataka, with over 7000 units, 1500 ATMs, 3500

branches and 6000 employees

Website: www.corpbank.

com

10. Allahabad Bank

Establishing Year: Founded in 1865 in Allahabad,

UP is a nationalized bank

in India

Banking Services: Core

services are Finance and insurance, Consumer

banking, Corporate banking

Total Assets: Revenue is over $3 billion, operating income of $540

million, net income of $200 million

and total equity of $80 million

Headquarters & Employees: Bank is based in Kolkata

with over 2500 branches and over 23,000 employees

Website: allahabadban

k.in


87

11. Bank of

Maharashtra

Establishing Year: Founded in 1935 the bank has largest network of

branches in Maharashtra. It is a public sector bank.

Banking Services: Loans,

Credit Cards, Savings,

Investment vehicles, and

insurance, investment

banking, mortgage loans, private banking etc.

Total Assets: Total assets of Rs 500 Million,

and the revenue is over $1

Billion


Based in Pune, and reaches out to 15 Million customers

with 2000 branches in 29

states.

Website: www.bankofma

harashtra.in

12. Indian Overseas

Bank


on Feb 10, 1937, the

Indian Overseas Bank is public sector and ISO certified bank

Banking Services: Loans, Credit Cards, Savings, Investment

vehicles, Banking services are Commercial

Banking, Retail Banking, Private Banking, Asset Management,


Total Assets: Total Assets is $150 Billion,

revenue is $57 billion and net income is $3.2

Billion


Bank is headquartered in Chennai with

2000+ ATMs and more than 3000 branches

Website: www.iob.in


88

13. Oriental Bank of

Commerce

Establishing Year: Bank was founded by Late Rai Bahadur Lala Sohan Lal in the

year 1943 and it is a public sector

bank

Banking Services: Investment

Banking, Consumer Banking,

Commercial Banking, Retail Banking, Private Banking, Asset Management,


Cards

Total Assets: Rs 9000 Crores, Revenue is Rs

11,500 Crores and Net income is Rs

1200 Crores


Gurgaon, Haryana, India with over

15000 employees

Website: www.obcindia.c

o.in

14. Central Bank of

India

Establishing Year: Established on 21 December, 1911 and one of

oldest commercial bank owned by

the government.

Banking Services: Core Banking

services are Loans, Credit Cards,

Savings, Investment vehicles, and

insurance, investment banking,

mortgage loans, private banking etc.

Total Assets: Revenue is

over $3 Billion and surplus of

Rs 70,000 million


Headquartered in Mumbai with over 4000 branches in 27 Indian states

and 270 extension counters

Website: www.centralban

kofindia.co.in


89

15. Dena Bank

Establishing Year: Dena bank was founded in

1938 by the family of Devkaran

Nanjee and it is a nationalized bank

Banking Services: Investment Banking, Consumer Banking,

Commercial Banking, Retail

Banking, Private Banking, Asset Management,


Cards

Total Assets: Total revenue is $1 billion plus

and net income is around $100

million

Headquarters & Employees: Bank

is based in Mumbai, with over

1400 branches and 100+ ATMs

Website: www.denabank.co

m


90

Top 10 Banks in IndiaIn India banking sector is one of the most regulated sector in the economy. When Indian Government allowed private banks to operate in the nation many banks came into existence and gave a tough competition to various nationalized players. Private banks won over most nationalized banks because of the quality of services they offered to their customers. Private banks are more profitable compared to most nationalized banks. There are about 27 nationalized banks, 19 private sector banks, 32 foreign banks and various co-operative banks, regional rural banks operating in India. All of them compete for deposits first and then search someone to whom they can lend the money. It’s a complex process which requires loads of man power and capital to sustain the business operation.


91

State Bank of India: SBI undoubtedly is the leading bank in India when it comes to number of branches, ATM’s, net profits, total assets managed, etc. With an employee base of close to 3 lakh people SBI commands 20% (approx) of the Indian banking sector. The bank has over 17,000 branches with more than 27,000 ATM’s. The bank manages assets worth more than 390 billion USD.ICICI Bank: ICICI is the second in the list when it comes to quantity of assets managed by the Bank. According to the current market cap ICICI is ahead of SBI but behind HDFC. ICICI Bank has about 3540 branches, 11200 ATM’s and over 82000 employees. The bank manages assets worth 99 billion USD.Punjab National Bank: PNB is the third largest bank in India. The market capitalization of the bank is very low compared to the assets it manages. The bank has over 5800 branches, 6000+ ATM’s. It manages assets worth 90.9 billion USD.Bank of Baroda: BOB is the forth largest bank in India when it comes to managing assets. According to market cap the bank is undervalued/priced. The bank has over 4200 branches and has a net profit of 840 million USD. The assets managed by this bank are valued at 73 billion USD.HDFC Bank: If we prepared this list according to the market cap then HDFC would have been the number one bank in this list. Well according to assets managed the bank is at the 5th position. The bank has over 3200 branches, 12000+ ATM’s, Net Profit of 1.1 billion USD. The assets managed by this bank are valued at 66.7 billion USD.Canara Bank: The bank has about 3200 branches with over 4000 ATM’s. The bank employees about 44,000 people. Assets managed by the bank are valued at 61 billion USD.Axis Bank: Axis bank comes 7th in the list and 3rd in the list of private sector bank. The bank has 2225 branches, 12000+ ATM’s, 40200 employees . The bank manages assets worth 54 billion USD. The bank’s net profit is 1.5 billion USD.Bank of India: BOI has over 4500 branches and makes a profit of 400 million USD.IDBI Bank: The bank has about 1150 branches with about 2000 ATM’s. The bank employees about 15000 people. It manages assets worth 42 billion USD.Union Bank of India: The bank falls 10th in the list with about 4500 ATM’s. 290 million USD in profits. It manages assets worth 13.45 billion USD.


92

List of All 159 Computerized BanksAbhyudaya Co-op Bank LtdAbu Dhabi Commercial BankAkola District Central Co-operative BankAllahabad BankAlmora Urban Co-operative Bank Ltd.Andhra BankAndhra Pragathi Grameena BankApna Sahakari Bank LtdAustralia And New Zealand Banking Group Limited.Axis BankBank International IndonesiaBank Of AmericaBank Of Bahrain And KuwaitBank Of BarodaBank Of CeylonBank Of IndiaBank Of MaharashtraBank Of Tokyo- mitsubishi Ufj Ltd.Barclays Bank PlcBassein Catholic Co-op Bank LtdBnp ParibasCalyon BankCanara BankCapital Local Area Bank Ltd.Catholic Syrian Bank Ltd.Central Bank Of IndiaChina trust Commercial BankCitibank NaCitizencredit Co-operative Bank LtdCity Union Bank LtdCommonwealth Bank Of AustraliaCorporation BankCredit Suisse Ag

Dbs Bank LtdDena BankDeutsche BankDevelopment Credit Bank LimitedDhanlaxmi Bank LtdDicgcDombivli Nagari Sahakari Bank LimitedFirstrand Bank LimitedGopinath Patil Parsik Janata Sahakari Bank LtdGurgaon Gramin BankHdfc Bank LtdHsbcIcici Bank LtdIdbi Bank LtdIndian BankIndian Overseas BankIndusind Bank LtdIndustrial And Commercial Bank Of China LimitedIng Vysya Bank LtdJalgaon Janata Sahkari Bank LtdJanakalyan Sahakari Bank LtdJanaseva Sahakari Bank (Borivli) LtdJanaseva Sahakari Bank Ltd. PuneJanata Sahakari Bank Ltd (Pune)Jpmorgan Chase Bank N.AKallappanna Awade Ich Janata S BankKapol Co Op BankKarnataka Bank LtdKarnataka Vikas Grameena BankKarur Vysya BankKotak Mahindra Bank


93

Kurmanchal Nagar Sahkari Bank LtdMahanagar Co-op Bank LtdMaharashtra State Co Operative BankMashreqbank PscMizuho Corporate Bank LtdMumbai District Central Co-op. Bank Ltd.Nagpur Nagrik Sahakari Bank LtdNational Australia BankNew India Co-operative Bank Ltd.Nkgsb Co-op Bank LtdNorth Malabar Gramin BankNutan Nagarik Sahakari Bank LtdOman International Bank SaogOriental Bank Of CommerceParsik Janata Sahakari Bank LtdPrathama BankPrime Co Operative Bank LtdPunjab And Maharashtra Co-op Bank Ltd.Punjab And Sind BankPunjab National BankRabobank International (Ccrb)Rajgurunagar Sahakari Bank Ltd.Rajkot Nagarik Sahakari Bank LtdReserve Bank Of IndiaSberbankShinhan BankShri Chhatrapati Rajarshi Shahu Urban Co-op Bank LtdSociete GeneraleSolapur Janata Sahkari Bank Ltd.SolapurSouth Indian BankStandard Chartered BankState Bank Of Bikaner And JaipurState Bank Of HyderabadState Bank Of IndiaState Bank Of Mauritius Ltd

State Bank Of MysoreState Bank Of PatialaState Bank Of TravancoreSumitomo Mitsui Banking CorporationSyndicate BankTamilnad Mercantile Bank LtdThane Bharat Sahakari Bank LtdThe A.P. Mahesh Co-op Urban Bank Ltd.The Ahmedabad Mercantile Co-operative Bank Ltd.The Andhra Pradesh State Coop Bank LtdThe Bank Of Nova ScotiaThe Bank Of Rajasthan LtdThe Bharat Co-operative Bank (Mumbai) LtdThe Cosmos Co-operative Bank Ltd.The Delhi State Cooperative Bank Ltd.The Federal Bank LtdThe Gadchiroli District Central Cooperative Bank LtdThe Greater Bombay Co-op. Bank LtdThe Gujarat State Co-operative Bank LtdThe Jalgaon Peoples Co-op BankThe Jammu And Kashmir Bank LtdThe Kalupur Commercial Co. Op. Bank Ltd.The Kalyan Janata Sahakari Bank Ltd.The Kangra Central Co-operative Bank LtdThe Kangra Cooperative Bank LtdThe Karad Urban Co-op Bank LtdThe Karnataka State Apex Coop. Bank Ltd.The Lakshmi Vilas Bank LtdThe Mehsana Urban Cooperative Bank LtdThe Municipal Co Operative Bank Ltd MumbaiTHE NAINITAL BANK LIMITEDTHE NASIK MERCHANTS CO-OP BANK LTD., NASHIKTHE RAJASTHAN STATE COOPERATIVE BANK LTD.THE RATNAKAR BANK LTDTHE ROYAL BANK OF SCOTLAND N.VTHE SAHEBRAO DESHMUKH CO-OP. BANK LTD.THE SARASWAT CO-OPERATIVE BANK LTD


94

The Surat Peoples Co-op Bank LtdThe Sutex Co.Op. Bank Ltd.The Tamilnadu State Apex Cooperative Bank LimitedThe Thane District Central Co-op Bank LtdThe Thane Janata Sahakari Bank LtdThe Varachha Co-op. Bank Ltd.The Vishweshwar Sahakari Bank Ltd.,PuneThe West Bengal State Cooperative Bank LtdTjsb Sahakari Bank Ltd.Tumkur Grain Merchants Cooperative Bank Ltd.,Ubs AgUco BankUnion Bank Of IndiaUnited Bank Of IndiaUnited Overseas BankVasai Vikas Sahakari Bank Ltd.Vijaya BankWest Bengal State Cooperative BankWestpac Banking CorporationWoori BankYes Bank LtdZila Sahkari Bank Ltd Ghaziabad


95

List of Private Sector Banks Since Merged with other banks:-The Nedungadi Bank (merged with PNB)The Bank Of Rajasthan (merged with ICICI in 2010) Bharat Overseas Bank (Merged with Indian Overseas Bank)Lord Krishna Bank (Merged with Centurion Bank of Punjab, which was merged with HDFC Bank)The Sangli Bank (merged with ICICI Bank in 2006)The Ganesh Bank of Kurundwad (merged with Federal Bank) Global Trust Bank (merged with Oriental Bank of Commerce - 14th August 2004)Bank of Punjab (merged with Centurian Bank, which was later on merged with HDFC Bank)Centurion Bank (merged with HDFC Bank)SBI Commercial and International Bank Ltd.(Acquired by SBI in 2011)United Western Bank was merged into IDBI Bank (2006)

INDUSTRIAL BANKS Industrial Development Bank of IndiaNational Bank for Agriculture and Rural DevelopmentExport-Import Bank of IndiaNational Housing BankSmall Industries Development Bank of IndiaIndustrial Investment Bank of India Ltd.North Eastern Development Finance Corporation


96

CMDs and CEOs of Banks in India 2013(As of 12.08.2013)

NAME OF THE BANK CMD OR MDState Bank of India Pratip Chaudhuri, CMD

State Bank of Bikaner And Jaipur B. Sriram,MDState Bank of Hyderabad M Bhagavantha Rao,MD

State Bank of Mysore Sharad Sharma,MD

State Bank of Patiala Achal Kumar Gupta,MD

State Bank of Travancore P. Nanda Kumaran,MD

SBI AND ASSOCIATES


97

Nationalized Banks Name of the banks CMD

Allahabad Bank S. A. Panse,CMD

Andhra Bank B. A. Prabhakar,CMD

Bank of Baroda S. S. Mundra,CMDBank of India V. R. Iyer ,CMDBank of Maharashtra Narendra Singh,CMD

Canara Bank R. K. Dubey ,CMD

Central Bank of India Rajeev Rishi,CMDCorporation Bank Vacant

Dena Bank Ashwani Kumar ,CMDIDBI Bank Ltd M.S. Raghavan,CMDIndian Bank T. M. Bhasin,CMD

Indian Overseas Bank M.Narendra,CMD

Oriental Bank of Commerce S. L. Bansal,CMD

Punjab And Sind Bank Devendra Pal Singh, IAS,CMDPunjab National Bank K. R. Kamath,CMDSyndicate Bank Sudhir Kumar Jain, CMDUCO Bank Arun Kaul,CMDUnion Bank of India D.Sarkar,CMDUnited Bank of India Archana Bhargava,CMD

Vijaya Bank H.S Upendra Kamath,CMD


98

Private Banks NAME OF THE BANK CMD

Axis Bank Shikha Sharma,MD & CEOCatholic Syrian Bank Shri.V.P Iswardas,MD & CEOCity Union Bank BalasubramanianS,Development Credit Bank Murali M. Natrajan,MD & CEODhanalakshmi Bank Amitabh Chaturvedi,MD & CEOFederal Bank Shyam Srinivasan,MD & CEOHDFC Bank Adtya Puri, MD & CEOICICI Bank Smt Chanda Kochar, MD & CEOIndusind Bank Romesh Sobti, MD & CEOING Vysya Bank Shailendra Bhandari, MD & CEOJammu & Kashmir Bank Mushtaq Ahmad, MD & CEOKarnataka Bank P. Jayarama Bhat, MD& CEOKarur Vysya Bank K. Venkataraman, MD& CEOKotak Mahindra Bank Uday Kotak , MDLakshmi Vilas Bank P.R. Somasundaram, MDNainital Bank Devendra Pratap Singh,Chairman CEORatnakar Bank Vishwavir Ahuja, MD & CEOSouth Indian Bank Dr.V.A.JOSEPH, MD & CEOTamilnad Mercantile Bank K.B. Nagendra Murthy, MD & CEOYes Bank's Ltd Rana Kapoor, Founder/MD & CEO


99

Foreign bankNAME OF THE BANK HEAD IN INDIA

City Bank Pramit Jhaveri Citi Country Officer, India

HSBC Bank Naina Lal Kidwai Country Head, HSBC

Standard Chartered Bank Sunil Kaushal, chief of India operations.


100

CEONationalized Banks, Chairman and Head Offices

Name of the Bank Head Office Chairman

Allahabad Bank Kolkata Rakesh Sethi Andhra Bank Hyderabad C.V.R. Rajendran

Bank of Baroda Baroda S.S. MundraBank of India Mumbai Vijayalakshmi R Iyer

Bank of Maharashtra Pune Narendra SinghCanara Bank Bengaluru Rajiv Kishore Dubey

Central Bank of India Mumbai Shri Rajeev RishiCorporation Bank Mangalore Shri Sadhu ram Bansal

Dena Bank Mumbai Shri Ashwani KumarIndian Bank Chennai T.M.Bhasin

Indian Overseas Bank Chennai M. NarendraOriental Bank of Commerce New Delhi S.L.Bansal

Punjab and Sindh Bank New Delhi Shri Devender pal singhPunjab National Bank New Delhi K R Kamath

Syndicate Bank Manipal Shri Sudhir Kumar JainUnion Bank of India Mumbai Shri Arun TiwariUnited Bank of India kolkata ---------

UCO Bank Kolkata Arun KaulVijaya Bank Bangalore Shri.H.S Upendra Kamath

Bharatiya Mahila Bank New Delhi Usha Ananthasubrahamiam


101

Private-sector banks in IndiaThe private-sector banks in India represent part of the Indian banking sector that is made up of both private and public sector banks. The "private-sector banks" are banks where greater parts of stake or equity are held by the private shareholders and not by government.Banking in India has been dominated by public sector banks since the 1969 when all major banks were nationalized by the Indian government. However since liberalization in government banking policy in 1990s, old and new private sector banks have re-emerged. They have grown faster and bigger over the two decades since liberalization using the latest technology, providing contemporary innovations and monetary tools and techniques.[1]

The private sector banks are split into two groups by financial regulators in India, old and new. The old private sector banks existed prior to the nationalization in 1969 and kept their independence because they were either too small or specialist to be included in nationalization. The new private sector banks are those that have gained their banking license since the liberalization in the 1990s.Old private-sector banks:-The banks, which were not nationalized at the time of bank nationalization that took place during 1969 and 1980 are known to be the old private-sector banks. These were not nationalized, because of their small size and regional focus.[2] Most of the old private-sector banks are closely held by certain communities their operations are mostly restricted to the areas in and around their place of origin. Their Board of directors mainly consist of locally prominent personalities from trade and business circles. One of the positive points of these banks is that, they lean heavily on service and technology and as such, they are likely to attract more business in days to come with the restructuring of the industry round the corner.


102

List of the old private-sector banks in IndiaNAME Year established

1. BANK OF PUNJAB MERGED WITH CENTURION BANK TO FORM CENTURION BANK OF PUNJAB IN

JUNE 20051943

2. CITY UNION BANK 1904

3. DHANLAXMI BANK 1927

4. FEDERAL BANK 1931

5. ING VYSYA BANK 1930

6. JAMMU AND KASHMIR BANK 1938

7. KARNATAKA BANK 1924

8. KARUR VYSYA BANK 1916

9. LAKSHMI VILAS BANK 1926

10. NAINITAL BANK 1922

11. RBL BANK 1943

12. SBI COMMERCIAL AND INTERNATIONAL BANK 1955

13. SOUTH INDIAN BANK 1929

14. TAMILNAD MERCANTILE BANK LIMITED 1921

15. UNITED WESTERN BANK 1936

16. IDB BANK LTD (REVERSE MERGED WITH PARENT IDBI IN 2004 TO BECOME IDBI BANK. MAKING THIS PUBLIC SECTOR BANK PRIVATE)

1964

17. CATHOLIC SYRIAN BANK 1920


103

New private-sector banksThe banks, which came in operation after 1991, with the introduction of economic reforms and financial sector reforms are called "new private-sector banks". Banking regulation act was then amended in 1993, which permitted the entry of new private-sector banks in the Indian banking s sector. However, there were certain criteria set for the establishment of the new private-sector banks, some of those criteria being : The bank should have a minimum net worth of Rs. 200 crores.The promoters holding should be a minimum of 25% of the paid-up capital.Within 3 years of the starting of the operations, the bank should offer shares to public and their net worth must increased to 300 crores.


104

List of the new private-sector banks in IndiaName Year established

1. Axis Bank (earlier UTI Bnk) 1994

2. Bank of Punjab (actually an old generation private bank since it was not founded under post-1993 new bank licensing regime) 1989

3. Centurion Bank Ltd. (Merged Bank of Punjab in late 2005 to become Centurion Bank of Punjab, acquired by HDFC Bank Ltd. in 2008) 1994

4. Development Credit Bank (Converted from Co-operative Bank, now DCB Bank Ltd.) 1995

5. HDFC Bank 1994

6. ICICI Bank (previously ICICI and then both merged;total merger SCICI+ICICI+ICICI Bank Ltd) 1996

7. IndusInd Bank 1994

8. Kotak Mahindra Bank 2003

9. Yes Bank 2005

10. Times Bank (Merged with HDFC Bank Ltd.) Unknown

11. Global Trust Bank (India) (Merged with Oriental Bank of Commerce) Unknown

12. Balaji Corporation Bank Limited 2010

http://en.wikipedia.org/wiki/Axis_Bank

http://en.wikipedia.org/wiki/Bank_of_Punjab

http://en.wikipedia.org/wiki/Development_Credit_Bank

http://en.wikipedia.org/wiki/HDFC_Bank

http://en.wikipedia.org/wiki/ICICI_Bank

http://en.wikipedia.org/wiki/IndusInd_Bank

http://en.wikipedia.org/wiki/IndusInd_Bank

http://en.wikipedia.org/wiki/Kotak_Mahindra_Bank

http://en.wikipedia.org/wiki/Yes_Bank

http://en.wikipedia.org/w/index.php?title=Times_Bank&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Global_Trust_Bank_(India)&action=edit&redlink=1


105

NATIONALIZED BANKS

106

Allahabad BankType Public

Traded as BSE: 532480,NSE: ALBK

Industry Banking, Financial services

Founded 24 April 1865 in Allahabad

Headquarters Kolkata, India

Number of locations 2,840 branches (2014)

Key peopleTR Chawla Executive Director

Rakesh Sethi (Chairman and MD);

Services

Finance and insurance

Consumer banking

Corporate banking

Revenue 189.13 billion (US$3.1 billion) (2013)

Operating income 33.85 billion (US$560 million) (2013)

Net income 11.85 billion (US$200 million) (2013)

Total equity 5 billion (US$83 million) (2013)

Employees 22,557 (March 2013)

Website allahabadbank.in



107

Allahabad Bank (Hindi: इलाहाबाद बैंक) is a nationalized bank with its headquarters in Kolkata, India. It is the oldest joint stock bank in India. On 24 April 2014, the bank entered into its 150th year of establishment. It was founded in Allahabad in 1865.Shri T.R Chawla is the senior most Executive Director of the bank. Shri Rakesh Sethi is the newly appointed Chairman & Managing Director of the bank.As of 31 March 2012, it had over 2,500 branches across India. The bank did a total business of INR 3.1 trillion during the FY 2012-13. The bank has a branch in Hong Kong and a representative office in Shenzen.The bank's market capitalization in May 2013 was US$ 1.28 billion and it ranked #1466 on the Forbes Global 2000 listHistory19th centuryOn 24 April 1865, a group of Englishmen at Allahabad founded Allahabad Bank. By the end of 19th century it had branches at Jhansi, Kanpur, Lucknow, Bareilly, Nainital, Calcutta, and Delhi.20th centuryIn the early 20th century, with the start of Swadeshi movement, Allahabad Bank witnessed a spurt in deposits. In 1920, P & O Banking Corporation acquired Allahabad Bank with a bid price of 436 (US$7.20) per share. In 1923 the bank moved its head office and the registered office to Calcutta for reasons of both operational convenience and business opportunities. Then in 1927 Chartered Bank of India, Australia and China (Chartered Bank) acquired P&O Bank. However, Chartered Bank continued to operate Allahabad Bank as a separate entity.Allahabad Bank opened a branch in Rangoon (Yangon). At some point Chartered Bank amalgamated Allahabad Bank's branch in Rangoon with its own. In 1963 the revolutionary government in Burma nationalized Central Bank of India's operations there, which became People's Bank No. 2.On 19 July 1969, the Indian Government nationalized Allahabad Bank, together with 13 other banks.In October 1989, Allahabad Bank acquired United Industrial Bank, a Calcutta-based bank that had been established in 1940. Two years later, Allahabad Bank established All Bank Finance Ltd, a wholly owned Merchant Banking subsidiary.21st centuryThe government's ownership of Allahabad Bank shrank in October 2002 after the bank engaged in an Initial Public Offering (IPO) of 100 million (US$1.7 million) of shares, each with a face value 10. The IPO reduced the Government's shareholding to 71.16%. Then in April 2005 the bank conducted a second public offering of 100 million of shares, each with a face value 10 and selling at a premium of 72. This offering reduced the Government's ownership to 55.23%.In June 2006 the bank opened its first office outside India when it opened a representative office in Shenzen, Mainland China. In February 2007, Allahabad Bank opened its first overseas branch, in Hong Kong. In March, the bank's business crossed the 10 million million mark.


108

Listings and shareholdingAllahabad Bank's equity shares are listed on Bombay Stock Exchange and the National Stock Exchange of India.

EmployeesAs on 31 March 2013, the bank had 22,557 employees, out of which 3,293 were women (15%). Out of the total employees, 51% were officers, 30% were clerks and remaining 19% were subordinate staff. The bank recruited 1,950 employees (1,421 Officers, 390 Clerks and 139 subordinate staff) during the same financial year . The company incurred INR 20 billion on employee benefit expenses during the same financial year.

Employee productivity: During the FY 2013-14, the business per employee was INR 13.50 crores and it earned a net profit of INR 4.77 lakhs per employee.

Shareholders (as on 31-Mar-2014)[10] ShareholdingPromoter Group (Government of India) 58.90%

Indian FIs/MFs 17.74%Foreign Institutional Investors (FII) 08.74%

Resident Indians 12.70%Others 01.92%

Total 100.0%

http://en.wikipedia.org/wiki/Allahabad_Bank


109

Andhra BankType Public

Traded as NSE: ANDHRABANKBSE: 532418

Industry FinanceFounded 20 November 1923; 90 years ago

Founder(s) Bhogaraju Pattabhi SitaramayyaHeadquarters Hyderabad

Key people C.V.R. Rajendran (CMD)

ProductsConsumer banking, Credit cards, corporate banking, finance

and insurance, private banking, wealth management, Agricultural Loans

Revenue 121.99 billion (US$2.0 billion) for the fiscal year ended 31 March 2012

Operating income 28.15 billion (US$470 million) for the fiscal year ended 31 March 2012

Net income 1.34 billion (US$22 million) for the fiscal year ended 31 March 2012

Total assets 1089 billion (US$18 billion) (2011)Employees 29,598 (2013)

Website http://www.andhrabank.in


110

Andhra Bank (Telugu: ఆంధ్రా� బ్యా�ంకు) (BSE: 532418) is a medium-sized public sector bank (PSB), with a network of 2000+ branches, 15 extension counters, 38 satellite offices and 1563 automated teller machines (ATMs) as on 30 Nov 2013. During 2011–12, the bank entered the states of Tripura and Himachal Pradesh. The bank now operates in 25 states and three Union Territories. The Government of India owns 58% of its share capital and is going to increase it to 62.14% by infusing 2 billion (US$33 million) in capital. The state owned Life Insurance Corporation of India holds 10% of the shares. The bank has done a total business of 2230 billion (US$37 billion) for the fiscal year ended 31 March 2013. Andhra Bank is 100% CBS as on date. This will benefit the customers, who will have access to banking and financial services anytime, anywhere through multiple delivery channels. Andhra Bank is a pioneer in introducing Credit Cards in the country in 1981.[citation needed] Andhra Bank has ranked No.1 in terms of number of Life Insurance Policies mobilized amongst all the agency banks dealing with the Life Insurance Corporation of India. The bank also has tie-up with United India Insurance Company Limited under Bancassurance (Non-Life).[citation needed]

http://en.wikipedia.org/wiki/Wikipedia:Citation_needed


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HISTORY:-Dr. Bhogaraju Pattabhi Sitaramayya founded Andhra Bank in 1923 in Machilipatnam, Andhra Pradesh. The bank was registered on 20 November 1923 and commenced business on 28 November 1923 with a paid up capital of 100000 (US$1,700) and an authorized capital of 1 million (US$17,000) In 1956, linguistic division of States was promulgated and Hyderabad was made the capital of Andhra Pradesh. The registered office of the bank was subsequently shifted to Andhra Bank Buildings, Sultan Bazar, Hyderabad, Telangana. In the second phase of nationalization of commercial banks commenced in April 1980, the bank became a wholly owned Government bank. In 1964, the bank merged with Bharat Lakshmi Bank and further consolidated its position in Andhra Pradesh. India First Life Insurance Company is a life insurance company in India. It is a joint venture between two of India’s public sector banks – Bank of Baroda (44%) and Andhra Bank (30%), and UK’s financial and investment company Legal & General(26%). It was incorporated in November 2009. It has its headquarters in Mumbai. India First Life made more than 2 billion (US$33 million) in turnover in just four and half months since the insurance company became operational. India First Life insurance company is headquartered in Mumbai. India First is the first life insurance company to be recommended for ISO certification within 7 months of inception.


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Products and servicesThe products and services provided by the bank mainly categorized into businesses of Retail, Corporate, NRI, MSME, and Agricultural industries. Under the Retail Business, the bank offers deposits, loans, cards, DMAT services, P payment services, insurance, and mutual funds to individual customers. Under the Corporate Business, the bank offers loans & advances, project appraisals, and loan syndication. Under the NRI business segment, the bank offers Deposit schemes, loans, remittance services, and investment services to the non-resident Indians. Under the MSME business segment, the bank offers different schemes that aimed at providing loan and transaction services to Micro Small and Medium Enterprises (MSME). Some of the MSME schemes available are OTS Scheme, Composite loan scheme, Open cash credit (OCC), Artisans Credit Card (ACC), AB Laghu Udhyami Credit Card (LUCC), AB Power Tools (Shakti), Technology up gradation fund scheme (TUFs), Credit guarantee fund trust for small industries (CGTSI), AB Doctor Plus...etc. Under the Agriculture business segment, bank provides different credit schemes to farmers, Women Empowerment schemes, and Andhra Bank Rural Development Trust (ABRDT) helps Rural Self Employment Training Institutes (RSETIs).Andhra Bank introduced Internet Banking Facility (AB INFI-net) to all customers of cluster linked branches. Rail Ticket Booking Facility is made available to all debit card holders as well as to internet banking customers through IRCTC Website through a separate gateway. Corporate Website is available in English, Hindi and Telugu Languages communicating Bank's image and information. Bank has been given 'BEST BANK AWARD' a banking technology award by IDRBT, Hyderabad for extensive use of IT in Semi Urban and Rural Areas on 2 September 2006.[citation needed] IBA Jointly with TFCI has conferred the Joint Runner-up Award to the Bank in the Bet Payments initiative in recognition of outstanding achievement of the Bank in promoting ATM Channel.[citation needed] Bank successfully conducted " Bancon 2006", a two-day event at Hyderabad, deliberating on Inclusive Growth – A New Challenge. Kiddy Bank Scheme, with insurance benefits, was relaunched to inculcate savings habit among the children. Bank has mobilized nearly 90000 new accounts during 2007–08.[citation needed]





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International expansionAndhra Bank opened a representative office in Dubai in May 2006 and another at Jersey City, New Jersey (USA), in June 2009. A foothold in New Jersey is strategic for the bank as the state has a large number of Indians from Andhra Pradesh.In 2010 Malaysia awarded a commercial banking license to a locally incorporated bank to be jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra Bank. The new bank, India BIA Bank (Malaysia), will have its headquarters in Kuala Lumpur, which has a large population of Indians. Andhra Bank will hold a 25% stake in the joint-venture. Bank of Baroda will own 40% and IOB the remaining 35%.Andhra Bank entered MoU with Bank of Baroda and Legal & General Group of UK to form a joint venture life insurance company India First Life Insurance Company. The shareholders' agreement has already been signed and necessary formalities are being completed for setting up of the company. The JV Company is already incorporated in June'08 and is in the process of filing for approvals from IRDA etc. India First has commenced operations.AwardsBEST BANK MID-SIZE Business world – PricewaterhouseCoopers Survey for India's Best Banks 2010BEST BANK – for the Quality of Assets by Business TodayBEST PUBLIC SECTOR BANK by State Forum of Bankers' Club KeralaMSME NATIONAL AWARDAndhra Bank was ranked 532nd for the year ended 31 March 2007 amongst Top 1000 Banks in the world by "The Banker" – a London based publication based on Tier I Capital as defined by Basel's Bank for International Settlements (BIS).[citation needed]


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Community involvementAndhra Bank, along with A P State Government, NABARD, Canara Bank, Indian Bank, IOB and SBH sponsored the Andhra Pradesh Banker's Institute of Entrepreneurship Development, which will offer training to unemployed youth for improving their skills in Andhra Pradesh.Andhra Bank adopted Gundugolanu village, West Godavari District, Andhra Pradesh – the birthplace of its founder, Dr. Bhogaraju Pattabhi Sitaramayya. A comprehensive budget with an outlay of 55.5 million (US$920,000) is finalized for improving health, sanitation, education and social service facilities in the village.


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Bank of BarodaType PublicTraded as BSE: 532134Industry Banking, Financial servicesFounded 20 July 1908

Founder(s) Maharaja Sayajirao GaekwadHeadquarters Vadodara (Baroda), IndiaArea served WorldwideKey people S S Mundra (Chairman & MD)

Products

Credit cards, consumer banking, corporate banking, finance and insurance, investment banking,

mortgage loans, private banking, private equity, wealth management

Revenue 346 billion (US$5.7 billion) (2012)[2]

Net income 52.48 billion (US$870 million) (2012)[2]

Total assets 4.574 trillion (US$76 billion) (2012)[2]

Website www.bankofbaroda.com

http://en.wikipedia.org/wiki/Bank_of_Baroda




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Bank of Baroda (BoB) (Hindi: बैंक ऑफ़ बड़ौदा) is an Indian state-owned banking and financial services company headquartered in Vadodara (earlier known as Baroda) in Gujarat, India. It is the second-largest bank in India, after State Bank of India, and offers a range of banking products and financial services to corporate and retail customers through its branches and through its specialized subsidiaries and affiliates. During FY 2012-13, Its total business was 8,021 billion In addition to its headquarters in its home state of Gujarat, it has a corporate headquarters in the Bandra Kurla Complex in Mumbai.Based on 2012 data, it is ranked 715 on Forbes Global 2000 list BoB has total assets in excess of 3.58 trillion (short scale), 3,583 billion (long scale), a network of 4283 branches (out of which 4172 branches are in India) and offices, and over 2000 ATMs.The bank was founded by the Maharaja of Baroda, H. H. Sir Sayajirao Gaekwad III on 20 July 1908 in the Princely State of Baroda, in Gujarat. The bank, along with 13 other major commercial banks of India, was nationalized on 19 July 1969, by the Government of India and has been designated as a profit-making public sector undertaking (PSU).Bank of Baroda is one of the Big Four banks of India, along with State Bank of India, ICICI Bank and Punjab National Bank.History1908–1959Maratha Maharaja Sayajirao Gaekwad III, the founder of Bank of BarodaIn 1908, Maharaja Sayajirao Gaekwad III, one of the knights of the Maratha Kingdom, set up the Bank of Baroda (BoB),with other stalwarts of industry such as Sampatrao Gaekwad, Ralph Whitenack, Vithaldas Thakersey, Tulsidas Kilachand and NM Chokshi. Two years later, BoB established its first branch in Ahmedabad. The bank grew domestically until after World War II. Then in 1953 it crossed the Indian Ocean to serve the communities of Indians in Kenya and Indians in Uganda by establishing a branch each in Mombasa and Kampala. The next year it opened a second branch in Kenya, in Nairobi, and in 1956 it opened a branch in Dar- es-Salaam. Then in 1957 BoB took a giant step abroad by establishing a branch in London. London was the center of the British Commonwealth and the most important international banking center. In 1958 BoB acquired Hind Bank (Calcutta; est. 1943), which became BoB's first domestic acquisition.


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1960sIn 1961, BoB merged in New Citizen Bank of India. This merger helped it increase its branch network in Maharashtra. BoB also opened a branch in Fiji. The next year it opened a branch in Mauritius. Bank of Baroda In 1963, BoB acquired Surat Banking Corporation in Surat, Gujarat. The next year BoB acquired two banks: Umbergaon People’s Bank in southern Gujarat and Tamil Nadu Central Bank in Tamil Nadu state.In 1965, BoB opened a branch in Guyana. That same year BoB lost its branch in Narayanjanj (East Pakistan) due to the Indo-Pakistani War of 1965. It is unclear when BoB had opened the branch. In 1967 it suffered a second loss of branches when the Tanzanian government nationalized BoB’s three branches there at (Dar es Salaam, Mwanga, and Moshi), and transferred their operations to the Tanzanian government-owned National Banking Corporation.In 1969 the Indian government nationalized 14 top banks, including BoB. BoB incorporated its operations in Uganda as a 51% subsidiary, with the government owning the rest.1972sIn 1972, BoB acquired Bank of India's operations in Uganda. Two years later, BoB opened a branch each in Dubai and Abu Dhabi.Back in India, in 1975, BoB acquired the majority shareholding and management control of Bareilly Corporation Bank (est. 1928) and Nainital Bank (est. in 1954), both in Uttar Pradesh. Since then, Nainital Bank has expanded to Uttarakhand state.International expansion continued in 1976 with the opening of a branch in Oman and another in Brussels. The Brussels branch was aimed at Indian firms from Mumbai (Bombay) engaged in diamond cutting and jewellery having business in Antwerp, a major center for diamond cutting.Two years later, BoB opened a branch in New York and another in the Seychelles. Then in 1979, BoB opened a branch in Nassau, the Bahamas.1980sIn 1980, BoB opened a branch in Bahrain and a representative office in Sydney, Australia. BoB, Union Bank of India and Indian Bank established IUB International Finance, a licensed deposit taker, in Hong Kong. Each of the three banks took an equal share. Eventually (in 1998), BoB would buy out its partners.A second consortium or joint- venture bank followed in 1985. BoB (20%), Bank of India (20%), Central Bank of India (20%) and ZIMCO (Zambian government; 40%) established Indo-Zambia Bank in Lusaka. That same year BoB also opened an Offshore Banking Unit (OBU) in Bahrain.Back in India, in 1988, BoB acquired Traders Bank, which had a network of 34 branches in Delhi.


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1990sIn 1990, BoB opened an OBU in Mauritius, but closed its representative office in Sydney. The next year BoB took over the London branches of Union Bank of India and Punjab & Sind Bank (P&S). P&S’s branch had been established before 1970 and Union Bank’s after 1980. The Reserve Bank of India ordered the takeover of the two following the banks' involvement in the Sethia fraud in 1987 and subsequent losses.Then in 1992 BoB incorporated its operations in Kenya into a local subsidiary with a small tranche of shares quoted on the Nairobi Stock Exchange. The next year, BoB closed its OBU in Bahrain.In 1996, BoB Bank entered the capital market in December with an Initial Public Offering (IPO). The Government of India is still the largest shareholder, owning 66% of the bank's equity.In 1997, BoB opened a branch in Durban. The next year BoB bought out its partners in IUB International Finance in Hong Kong. Apparently this was a response to regulatory changes following Hong Kong’s reversion to the People’s Republic of China. The now wholly owned subsidiary became Bank of Baroda (Hong Kong), a restricted license bank. BoB also acquired Punjab Cooperative Bank in a rescue. BoB incorporate wholly owned subsidiary BOB Capital Markets Ltd for broking business.In 1999, BoB merged in Bareilly Corporation Bank in another rescue. At the time, Bareilly had 64 branches, including four in Delhi. In Guyana, BoB incorporated its branch as a subsidiary, Bank of Baroda Guyana. BoB added a branch in Mauritius and closed its Harrow Branch in London.2000s2000: BoB established Bank of Baroda (Botswana).2002: BoB acquired Benares State Bank (BSB) at the Reserve Bank of India’s request. BSB was established in 1946 but traced its origins back to 1871 and its function as the treasury office of the Benares state. In 1964, BSB had acquired Bareilly Bank (est. 1934), with seven branches; it also had taken over Luck now Bank in 1968. The acquisition of BSB brought BoB 105 new branches.2002: Bank of Baroda (Uganda) was listed on the Uganda Securities Exchange (USE).2003: BoB opened an OBU in Mumbai.2004: BoB acquired the failed Gujarat Local Area Bank, and returned to Tanzania by establishing a subsidiary in Dar-es-Salaam. BoB also opened a representative office each in Kuala Lumpur, Malaysia, and Guangdong, China.2005: BoB built a Global Data Centre (DC) in Mumbai for running its centralized banking solution (CBS) and other applications in more than 1,900 branches across India and 20 other counties where the bank operates. BoB also opened a representative office in Thailand.2006: BoB established an Offshore Banking Unit (OBU) in Singapore.2007: In its centenary year, BoB’s total business crossed 2.09 trillion (short scale), its branches crossed 2000, and its global customer base 29 million people.2008: BoB opened a branch in Guangzhou, China (02/08/2008) and in Kenton, Harrow United Kingdom. BoB opened a joint venture life insurance company with Andhra Bank and Legal and General (UK) called India First Life Insurance Company.

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SubsidiariesBOB Capital Markets (BOBCAPS) is a SEBI-registered investment banking company based in Mumbai, Maharashtra. It is a wholly owned subsidiary of Bank of Baroda. Its financial services portfolio includes initial public offerings, private placement of debts, corporate restructuring, business valuation, mergers and acquisition, project appraisal, loan syndication, institutional equity research, and brokerage.International presenceIn its international expansion, the Bank of Baroda followed the Indian diaspora, especially that of Guajarati's. The Bank has 101 branches/offices in 24 countries including 61 branches/offices of the bank, 38 branches of its 8 subsidiaries and 1 representative office in Thailand. The Bank of Baroda has a joint venture in Zambia with 16 branches.Among the Bank of Baroda’s overseas branches are ones in the world’s major financial centres (e.g., New York, London, Dubai, Hong Kong, Brussels and Singapore), as well as a number in other countries. The bank is engaged in retail banking via the branches of subsidiaries in Botswana, Guyana, Kenya, Tanzania, and Uganda. The bank plans has recently upgraded its representative office in Australia to a branch and set up a joint venture commercial bank in Malaysia. It has a large presence in Mauritius with about nine branches spread out in the countryThe Bank of Baroda has received permission or in-principle approval from host country regulators to open new offices in Trinidad and Tobago and Ghana, where it seeks to establish joint ventures or subsidiaries. The bank has received Reserve Bank of India approval to open offices in the Maldives, and New Zealand. It is seeking approval for operations in Bahrain, South Africa, Kuwait, Mozambique, and Qatar, and is establishing offices in Canada, New Zealand, Sri Lanka, Bahrain, Saudi Arabia, and Russia. It also has plans to extend its existing operations in the United Kingdom, the United Arab Emirates, and Botswana.The tagline of Bank of Baroda is "India's International Bank".AffiliatesIndia First Life Insurance Company is a joint venture between Bank of Baroda (44%) and fellow Indian state-owned bank Andhra Bank (30%), and UK’s financial and investment company Legal & General (26%). It was incorporated in November, 2009 and has its headquarters in Mumbai.[ The company started strongly, achieving a turnover in excess of 2 billion in its first four and half months.Baroda Manipal postgraduate diploma in banking and financeBank of Baroda and Manipal University have established the Baroda Manipal School of Banking, which offers a Postgraduate Diploma in Banking & Finance (PGDBF) from Manipal University. The duration of the course is just one year, after which, successful graduates will join Bank of Baroda as management trainees.



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Bank of Baroda financials 2013Sales 352 billionProfits 45 billionAssets 4,496 billion

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Bank of IndiaType Public (BSE: BOI)

Industry Financial services

Founded September 7, 1906 (107 years ago)

Headquarters Mumbai, Maharashtra, India

Key people Vijayalakshmi R Iyer (CMD)

Products

Commercial BankingRetail BankingPrivate Banking

Asset ManagementMortgages

Credit Cards

Revenue 243935.0 million (US$4.0 billion)[1]

Operating income 53842.3 million (US$890 million)[1]

Net income 24887.1 million (US$410 million)[1]

Website www.bankofindia.com


http://en.wikipedia.org/wiki/Bank_of_India



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Bank of India (BoI) is an Indian state-owned commercial bank with headquarters in Mumbai, Maharashtra, India. Government-owned since nationalization in 1969, Bank of India has 4545 branches as on 31 December 2013, including 54 branches outside India, and about ATMs.[citation needed] BoI is a founder member of SWIFT (Society for Worldwide Inter Bank Financial Telecommunications), which facilitates provision of cost-effective financial processing and communication services. The Bank completed its first one hundred years of operations on 7 September 2006.[citation needed]

HistoryPrevious banks that used the name Bank of IndiaAt least three banks having the name Bank of India had preceded the setting up of the present Bank of India.A person named Sagar Rajani set up the first Bank of India in Delhi (Kolkata) in 1828, but nothing more is known about this bank.The second Bank of India was incorporated in London in the year 1836 as an Anglo-Indian bank; it is not clear that it ever actually functioned.The third bank named Bank of India was registered in Bombay (Mumbai) in the year 1906. The earlier holders of the Bank of India name had failed and were no longer in existence by the time a diverse group of Hindus, Muslims, Parsees, and Jews helped establish the present Bank of India in 1906. It was the first in India promoted by Indian interests to serve all the communities of India. At the time, banks in India were either owned by Europeans and served mainly the interests of the European merchant houses, or by different communities and served the banking needs of their own community. The promoters incorporated the Bank of India on 7 September 1906 under Act VI of 1882, with an authorized capital of Rs. 10 million divided into 100,000 shares each of Rs. 100. The promoters placed 55,000 shares privately, and issued 45,000 to the public by way of IPO on 3 October 1906; the bank commenced operations on 1 November 1906.The lead promoter of the Bank of India was Sir Sassoon J. David (1849–1926). He was a member of the Sassoons, who in turn were part of a Bombay community of Baghdadi Jews, which was notable for its history of social service. Sir David was a prudent banker and remained the chief executive of the bank from its founding in 1906 until his death in 1926.The first board of directors of the bank consisted of Sir Sassoon David, Sir Cowasjee Jehangir, J. Cowasjee Jehangir, Sir Frederick Leigh Croft, Ratanjee Dadabhoy Tata, Gordhandas Khattau, Lalubhai Samaldas, Khetsety Khiasey, Ramnarain Hurnundrai, Jenarrayen Hindoomull Dani, Noordin Ebrahim Noordin.


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1906: BoI founded with Head Office in Bombay.1921: BoI entered into an agreement with the Bombay Stock Exchange to manage its clearing house.1946: BoI opened a branch in London, the first Indian bank to do so. This was also the first post-WWII overseas branch of any Indian bank.1950: BoI opened branches in Tokyo and Osaka.1951: BoI opened a branch in Singapore.1953: BoI opened a branch in Kenya and another in Uganda.1953 or 54: BoI opened a branch in Aden.1955: BoI opened a branch in Tanganyika.1960: BoI opened a branch in Hong Kong.1962: BoI opened a branch in Nigeria.1967: The Government of Tanzania nationalized BoI's operations in Tanzania and folded them into the government-owned National Commercial Bank, together with those of Bank of Baroda and several other foreign banks.1969: The Government of India nationalized the 14 top banks, including Bank of India. In the same year, the People's Democratic Republic of Yemen nationalized BoI's branch in Aden, and the Nigerian and Ugandan governments forced BoI to incorporate its branches in those countries.1970: National Bank of Southern Yemen incorporated BoI's branch in Yemen, together with those of all the other banks in the country; this is now National Bank of Yemen. BoI was the only Indian bank in the country.1972: BoI sold its Uganda operation to Bank of Baroda.1973: BoI opened a rep in Jakarta.1974: BoI opened a branch in Paris. This was the first branch of an Indian bank in Europe.1976: The Nigerian government acquired 60% of the shares in Bank of India (Nigeria).1978: BoI opened a branch in New York.1970s: BoI opened an agency in San Francisco.1980: Bank of India (Nigeria) Ltd, changed its name to Allied Bank of Nigeria.1986: BoI acquired Paravur Central Bank (Ernakulum District Kerala State) in a rescue.1987: BoI took over the three UK branches of Central Bank of India (CBI). CBI had been caught up in the Sethia fraud and default and the Reserve Bank of India required it to transfer its branches.2003: BoI opened a representative office in Shenzhen.2005: BoI opened a representative office in Vietnam.2006: BoI plans to upgrade the Shenzhen and Vietnam representative offices to branches, and to open representative offices in Beijing, Doha, and Johannesburg. In addition, BoI plans to establish a branch in Antwerp and a subsidiary in Dar-es-Salaam, marking its return to Tanzania after 37 years.2007: BoI acquired 76 percent of Indonesia-based PT Bank Swadesi.2011: BoI opened a fully owned Subsidiary in Auckland, New Zealand on 6 October 2011 (Bank of India (New Zealand) Ltd.)2012: BoI opened a fully owned subsidiary in Uganda on 18 June 2012 (Bank of India (Uganda) Ltd.).2013: BoI opened a fully owned subsidiary in Botswana on 9 August 2013 (Bank of India (Botswana) Ltd.).


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CMD since nationalization1969–1970 : Tribhovandas Damodardas Kansara1970–1975 : J.N.Saxena1975–1977 : Suparn Rana1977–1980 : H C Sarkar1981–1984 : N Vaghul1984–1986 : T. Tiwari1987–1991 : R. Srinivasan1992–1995 : G. S. Dahotre1995–1997 : G. Kathuria1997–1998 : M G Bhide1998–2000 : S Rajagopal2000–2003 : K V Krishanamurthy2003–2005 : M Venugopal2005–2007 : M.Balachandran2007–2009 : T.S.Narayanasami2009–2012 : Alok Kumar Mishra (Former chairman of Indian Bank's Association)2012–present : Vijayalakshmi R Iyer


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Bank of MaharashtraType Public company

BSE & NSE: MAHABANK

Industry Banking,Capital markets and allied industries

Founded 1935

Headquarters1501, Lokmangal,

Shivajinagar,Pune, 411005

Key peopleSushil Muhnot , Chairman & Managing

DirectorC VR Rajendran, R Athmaram ,

Executive Directors

Products Loans, credit cards, savings, investment etc.

Revenue 60939 million (US$1.0 billion)[1]

Total assets 481 millionWebsite www.bankofmaharashtra.in


http://en.wikipedia.org/wiki/Bank_of_Maharashtra

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Bank of Maharashtra (Hindi: बैंक ऑफ़ महाराष्ट्र | Marathi: बँक ऑफ महाराष्ट्र) is a major public sector bank in India. Government of India holds 85.21% of the total shares. The bank has 15 million customers across the length and breadth of the country served through more than 1825 branches. It has largest network of branches by any public sector bank in the state of MaharashtraHistoryThe bank was founded by a group of visionaries led by the late V. G. Kale and the late D. K. Sathe and registered as a banking company on 16 September 1935 at Pune.The bank was registered on 16 September 1935 with an authorized capital of 1 million, and began business on 8 February 1936. Bank's financial assistance to small units has given birth to many of today's industrial houses. After nationalization in 1969, the bank expanded rapidly.Shri Narendra Singh who had assumed the office of Chairman and Managing Director from 1 February 2012, left his office on 30 September 2013 on attaining superannuation. Shri Sushil Muhnot is the new Chairman and Managing Director.Autonomy of the bankThe bank attained autonomous status in 1998. As a result, the bank has limited interference of Government bureaucracy in its decision making process and internal affairs.Other attributesConvener of the State Level Bankers Committee.Offers Depository services and Demat facilities at 131 branches.Has a tie up with LIC of India and United India Insurance company for sale of insurance policies.Has achieved 100% CBS enabling anytime anywhere banking to its customers.LogoThe logo is made of the following items:The Deepmal - with its many lights rising to greater heights,The Pillar - symbolizing strength,The Diyas- symbolizing services,The three Ms - symbolizing mobilization of money, modernization of methods, motivation of staff.The PressThe bank attracted negative media attention in June 2013, when newspapers reported the story of victimization of the bank's ex-Director Shri Devidas Tuljapurkar, who had in October 2012 written to the RBI Governor Dr D. Subbarao regarding fraudulent loans given by the bank. The complaint was unwittingly forwarded by the governor to BoM management, which then started alleged harassment of Tuljapurkar, showing the absence of a safe whistleblower policy in the bank.


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Bharatiya Mahila BankType State ownership


Founded 2013

Headquarters New Delhi, India

Key people Usha Ananthasubramanian (Chairman & MD)

Products

core banking, credit card, consumer banking, corporate banking, finance and insurance, investment banking,

mortgage loans, private banking, private equity, wealth management

Owner(s) Government of India

Website www.bmb.co.in


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Bharatiya Mahila Bank (Hindi: भारतीय महिला बैंक) (BMB) is an Indian financial services banking company based in New Delhi, India. Former Indian Prime Minister Manmohan Singh inaugurated the system on 19 November 2013 on the occasion of the 94th birth anniversary of former Indian Prime Minister Indira Gandhi. Although initially reported as a bank exclusively for women, the bank allows deposits to flow from everyone, but lending will be predominantly for women. India is the third country in the world to have a bank especially for women, after Pakistan and TanzaniaThe bank has been criticized as adopting a segregational approach to gender equality. Uma Shashikant of the The Hindu writes:Women-only banks are another instance of wanting to treat women ‘differently’. We guise this in many forms, some in garbs of reverence, some as protection, but they are all forms of discrimination that promote gender-based stereotyping. Women-only organizations stem from this eagerness to patronize women in the name of preferential treatment.Banking For WomenIn India, only 26% of women have an account with a formal financial institution, compared with 46% of men. That means an account in either a bank, a credit union, a co-operative, post office or a microfinance institution, according to a study by the World Bank. Also, for women, per capita credit is 80 per cent lower than males.Furthermore, the results of a study using a global dataset covering 350 Microfinance Institutions (MFIs) in 70 countries indicates that more women clients is associated with lower portfolio-at-risk, lower write-offs, and lower credit-loss provisions, ceteris paribus. provisionObjectiveThe bank will also place emphasis on funding for skills developments to help in economic activity. Moreover, the products will be designed in a manner to give a slight concession on loan rates to women.The bank shall also aim to inspire people with entrepreneurial skills and, in conjunction with NGOs, plans to locally mobilize women to train them in vocations like toy-making or driving tractors or mobile repairs, according to Usha Ananthasubramanian (CMD).One of the other objectives of the bank is to promote asset ownership amongst women customers. Studies have shown that asset ownership amongst women reduces their risk of suffering from domestic violence.CapitalThe Bank's initial capital consists of Rs 1,000 cores. The government plans to have 25 branches of the said bank by the end of March 2014 and 500 branches by 4th year of operation (2017).US-based FIS Global, in partnership with Wipro is leading the race for a Rs 1,000-crore contract to provide IT systems at the country’s first women- focused bank, it is reliably learnt.


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BranchesThe government has chosen the iconic Air India building at Nariman Point in Mumbai to open the first branch of Bank. A senior Air India official said the company has agreed in principle to give space to the bank. “The branch will come up in the 5,000 sq ft space on the sea-facing side of the building. With the Bharatiya Mahila Bank, we will have two bank branches on the ground floor of the building — the other is a Bank of India branch,” said a senior Air India official.The Bharatiya Mahila Bank, which started operations from November 2013, is planning to open a modest 33,400 accounts through 39 branches in its first year.Key managementInitially the bank will have a board of directors consisting of eight women. The board consists of a business graduate sarpanch from Rajasthan, Chhavi Rajawat, Dalit entrepreneur Kalpana Saroj, who turned around a tubes business, retired public banker Nupur Mitra, academic Pakiza Samad, private equity professional Renuka Ramnath, Godrej Group executive Director Tanya Dubash and Priya Kumar, a government nominee.One of the key objective of the Bank is focus on the banking needs of women and promote economic empowerment through women's growth and developments.


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Canara BankType Public (BSE: 532483, NSE: CANBK)


FoundedCanara Bank Hindu Permanent Fund (1906)

Canara Bank Ltd (1910)Canara Bank (1969)

Headquarters Bangalore, Karnataka, IndiaKey people Rajiv Kishore Dubey (CMD)

Products

Investment BankingConsumer Banking

Commercial BankingRetail Banking

Private BankingAsset Management

PensionsMortgages

Credit Cards

Revenue 339 billion (US$5.6 billion) (2012)Net income 33.41 billion (US$550 million) (2012)Total assets 3.794 trillion (US$63 billion) (2012)Employees 44,090 (2012)

Website Canarabank.in


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Canara Bank is an Indian state-owned bank headquartered in Bangalore, Karnataka. It was established in 1906, making it one of the oldest banks in the country; the bank was nationalized in 1969. As of July 2014, the bank had a network of 5111 branches and more than 6000 ATMs spread across India. The bank also has offices abroad in London, Hong Kong, Moscow, Shanghai, Doha, and Dubai.Canara Bank was ranked at 816 in the Forbes Global 2000 list.Ammembal Subba Rao Pai, a philanthropist, established the Canara Hindu Permanent Fund in Mangalore, India, on 1 July 1906. The bank changed its name to Canara Bank Limited in 1910 when it incorporated.Canara Bank's first acquisition took place in 1961 when it acquired Bank of Kerala. Bank of Kerala had been founded in September 1944 and at the time of its acquisition on 20 May 1961 had three branches. The second bank that Canara Bank acquired was Seasia Midland Bank (Alleppey), which had been established on 26 July 1930 and had seven branches at the time of its takeover.In 1958, the Reserve Bank of India had ordered Canara Bank to acquire G. Raghumathmul Bank, in Hyderabad. This bank had been established in 1870, and had converted to a limited company in 1925. At the time of the acquisition G. Raghumathmul Bank had five branches. The merger took effect in 1961. Later in 1961, Canara Bank acquired Trivandrum Permanent Bank. Trivandrum Permanent Bank had been founded on 7 February 1899 and had 14 branches at the time of the merger.Next, Canara Bank acquired four banks in 1963: the Sree Poornathrayeesa Vilasam Bank, Thrippunithura, Arnad Bank, Tiruchirapalli, Cochin Commercial Bank, Cochin, and Pandyan Bank, Madurai. Sree Poornathrayeesa Vilasam Bank had been established on 21 February 1923 and at the time of its acquisition it had 14 branches. Arnad Bank had been established on 23 December 1942 and at the time of its acquisition had only one branch. Cochin Commercial Bank had been established on 3 January 1936, and at the time of its acquisition had 13 branches.The Government of India nationalized Canara Bank, along with 13 other major commercial banks of India, on 19 July 1969. In 1976, Canara Bank inaugurated its 1000th branch. In 1985, Canara Bank acquired Lakshmi Commercial Bank in a rescue. This brought Canara Bank some 230 branches in northern India.In 1996 Canara Bank became the first Indian Bank to get ISO certification for "Total Branch Banking" for its Seshadripuram branch in Bangalore. Canara Bank has now stopped opting for ISO certification of branches.


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Overseas subsidiaries, branches and officesCanara Bank established its International Division in 1976. In 1983, Canara Bank opened its first overseas office, a branch in London. Two years later, Canara Bank established a subsidiary in Hong Kong, Indo Hong Kong International Finance. In 2008-9, Canara Bank opened its third foreign operation, this one a branch in Shanghai. Later Canara Bank established a branch each in Leicester and Bahrain, and converted its Hong Kong subsidiary into a branch. It also has a representative office in Sharjah.Together with State Bank of India, Canara Bank established a joint venture in Moscow, Commercial Bank of India LLC.Canara Bank provides the general manager and the branch managers for Al Razouki Intl Exchange Co (LLC), which a number of business leaders and Non-Resident Indians (NRIs) established in 1981 in the United Arab Emirates to facilitate remittances to India by tourists and NRIs.Since 1983, Canara Bank has been responsible for the management of Eastern Exchange Establishment, Doha, Qatar, which Abdul Rahman M.M. Al Muftah had established in 1979.[8]

Canara Bank opened its seventh overseas branch in New York, USA on 10 June 2014.Subsidiary companiesCanfin Homes LimitedCan bank Factors LimitedCan bank Venture Capital Fund LimitedCan bank Computer Services LimitedCanara Bank Securities LimitedCanara Robeco Asset Management Company LimitedCan bank Financial Services LimitedCanara HSBC Oriental Life Insurance Company LimitedCanara Housing Finance LimitedRegional rural banksCanara Bank sponsors two regional rural banks (RRB).Kerala Gramin Bank – is the largest RRB in India. Its headquarters are at Malappuram and it operates in all districts in Kerala. It was established in 1976 as a Scheduled Commercial Bank. Pragathi Gramin Bank has its headquarters at Bellary, Karnataka, and has 405 branches spread over seven districts.Canara bank is a state level lead bank in Kerala.


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Development projectsCanara Bank partnered with UNEP to initiate a solar loan program. It was a four-year $7.6 million effort, launched in April 2003, to help accelerate the market for financing solar home systems in southern India.Major IT initiativeCanara Bank had a major IT initiative to network all branches and move them to a single software platform. Canara Bank chose Flex cube from Oracle Financial Services Software as the application. The Bank entered into an agreement with IBM for rolling out flex cube to over 1000 branches as part of Phase I. This phase has just been concluded, with Karaikudi Branch in Tamil Nadu being the 1000th branch to go live. Over 22 million customers are benefiting from this initiative. Now, all the branches of Canara Bank are live on core banking application Flex cube.


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Central Bank of IndiaType Public company

BSE & NSE:CENTRALBK

Industry FinancialCommercial banks

Founded 21 December 1911; 102 years ago

Headquarters Mumbai, India

Key people Shri. Rajeev Rishi, Chairman & Managing Director

Revenue 191495 million (US$3.2 billion) (2010-11)

Employees 42000(approx)

Website www.centralbankofindia.co.in


http://en.wikipedia.org/wiki/Indian_rupee

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Central Bank of India (Marathi: सेंट्रल बँक ऑफ इंडि�या), a government-owned bank, is one of the oldest and largest commercial banks in India. It is based in Mumbai. The bank has 4600 branches and 4 extension counters across 27 Indian states and three Union Territories. At present, Central Bank of India has overseas office at Nairobi, Hong Kong and a joint venture with Bank of India, Bank of Baroda, and the Zambian government. The Zambian government holds 40 per cent stake and each of the banks has 20 per cent. Recently it has also opened a representative office at Nairobi, Kenya.Central bank of India is one of 18 Public Sector banks in India to get recapitalization finance from the government over the next 24 months.Central Bank of India has approached the Reserve Bank of India (RBI) for permission to open representative offices in five more locations - Singapore, Dubai, Doha and London As on 31 March 2011, the bank's reserves and surplus stood at 68688 million. Its total business at the end of the last fiscal amounted to 2,22,124(approx) million.HistoryIt was established on 21 December 1911 by Sir Sorabji Pochkhanawala with Sir Pherozeshah Mehta as Chairman, and claims to have been the first commercial Indian bank completely owned and managed by Indians.By 1918 it had established a branch in Hyderabad. A branch in nearby Secunderabad followed in 1925.In 1923, it acquired the Tata Industrial Bank in the wake of the failure of the Alliance Bank of Simla. The Tata bank, established in 1917, had opened a branch in Madras in 1920 that became the Central Bank of India, Madras.Central Bank of India was instrumental in the creation of the first Indian exchange bank, the Central Exchange Bank of India, which opened in London in 1936. However, Barclays Bank acquired Central Exchange Bank of India in 1938.Also before World War II, Central Bank of India established a branch in Rangoon. The branch's operations concentrated on business between Burma and India, and especially money transmission via telegraphic transfer. Profits derived primarily from foreign exchange and margins. The bank also lent against land, produce, and other assets, mostly to Indian businessesPost-World War IIIn 1963, the revolutionary government in Burma nationalized Central Bank of India's operations there, which became People's Bank No. 1.[7]

In 1969, the Indian Government nationalized the bank on 19 July, together with 13 others.In the 1980s the managers of the London branches of Central Bank of India, Punjab National Bank, and Union Bank of India were caught up in a fraud in which they made dubious loans to the Bangladeshi jute trader Rajender Singh Sethia. The regulatory authorities in England and India forced all three Indian banks to close their London branches.Central Bank of India was one of the first banks in India to issue credit cards in the year 1980 in collaboration with MasterCard. Central Bank of India announces that the financial results for the year ended 2013-Total Business Rs. 402000 Cr. Net Profit-Rs. 1015 Cr. On 1 August 2013, Central Bank of India appoints new CMD Rajiv Rishi, who was previously ED of Indian Bank and General Manager of OBC and Raj Kumar Goyal as the new ED of the bank. On 1 November of the same year, the bank open its second representative office in Hong Kong..


Corporation BankType Public

Traded as BSE: 532179NSE: CORPBANK

Industry Banking

Founded Udupi, 12 March 1906; 108 years ago

Headquarters Mangalore, Karnataka, India

Key people Shri Sadhu ram Bansal(Chairman, MD)

Products Loans, Credit Cards, Savings, Investment vehicles, etc.


Website www.corpbank.com


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Corporation Bank is a public sector banking company headquartered in Mangalore, India. The bank has pan-India presence with 8,000 functional units comprising 2,012 branches, 2,186 ATMs and 4,000 branchless banking units as of 31 March 2013.The total business of the bank during the financial year 2013-14 has been 3,01,375 crores, as on 31 December 2013. The total deposits have grown to 1,77,845 crores. Total income of the bank reached 16,942.02 crores during this period. Operating profit of the bank reached 2,402.85 crores and net profit reached 520.15 crores.HistoryCorporation Bank, the oldest banking institution in the erstwhile undivided South Canara District of the Madras Presidency and one of the oldest banks in India, was founded in 12 March 1906 in the Temple Town of Udupi, by a small group of philanthropists led by Khan Bahadur Haji Abdulla Haji Kasim Saheb Bahadur. The need to start this bank was felt because there was no such facility at Udupi, an important trading centre next to Mangalore in South Canara district. The indigenous banking was largely in the hands of a few rich private individuals and something had to be done to provide relief to the common man from the clutches of the money lenders who held full sway. The first branch of a modern bank established in the district was the Bank of Madras, one of the three Presidency Banks, which set up its office in Mangalore in 1868 largely to cater to the business needs of a few British firms dealing in export of plantation products. Its agent used to visit Udupi once a fortnight or so, to do banking. Money remittances had to be made only through postal medium.To overcome these drawbacks and also to provide banking facilities for Udupi in particular and the district in general, a cosmopolitan group of philanthropists led by Haji Abdulla Saheb made a bold venture to start this institution. What inspired the founding fathers was the fervor of "Swadeshism". For promoting the bank, the Founder-President made an appeal saying, " The primary object in forming the ‘Corporation' is not only to cultivate habits of thrift amongst all classes of people, without distinction of caste or creed, but also habits of co-operation amongst all classes. This is ‘swadeshism', pure and simple and every lover of the country is expected to come forward and co-operate in achieving the end in view." They rightly defined Swadeshism as institution-building to aid economic activity through co-operation of all, shorn of distinction of caste and creed.The Canara Banking Corporation (Udupi) Limited, as the institution was called then, started functioning as a Nidhi with a humble beginning. The initial capital was 5,000/- and at the end of the first day, its resources stood at 38 rupees - 13 annas and 2 pies.The setting up of the Canara Banking Corporation Ltd. seems to have given a fillip to co-operative banking and also to regular banking elsewhere in the district. Between 1909 and 1917, six co-operative banks came into being and during the decade immediately after the First World War (1914–18) South Kanara gave birth to as many as eight banks. It is to the credit of this bank that despite two world wars, economic depression and stiff competition, the bank not only quite survived, but also made satisfactory progress.


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Having been started at Udupi, the bank first branched out by opening a branch at Kundapur in 1923. The second branch of the bank was opened in Mangalore at Car Street in 1926. The bank stepped into Kodagu district in 1934 by opening its seventh branch in Madikeri. In 1937, the bank was included in the second schedule of Reserve Bank of India Act, 1934. In 1939, the bank's name changed from "Canara Banking Corporation (Udupi) Ltd." to "Canara Banking Corporation Ltd." The Bank graduated into a regional bank in 1945 when the total number of its branches stood at 28. In 1961, it took over Bank of Citizens of Belgaum. In the same year, the bank's administration office shifted from Udupi to Mangalore.The second change in the name of the bank occurred in 1972, from Canara Banking Corporation Ltd. to Corporation Bank Limited. The bank was nationalized in 1980 along with 5 other private sector banks. After nationalization, the pace of growth of the bank accelerated and it made all-round progress. Started as a common man's bank, it changed with the times to meet the aspirations of the people but never swerved from its motto- Sarve Janah Sukhino Bhavantu meaning Prosperity for All. It endeavoured and succeeded in striking a right balance between traditional values and innovative approach, personalized service and professional outlook and commercial considerations and public concern. One of the unique achievements of the bank is that it has been paying dividend continuously for the last 98 years since its inception. Today, with the most modern technology-driven products and services and nationwide branches & ATMs, Corporation Bank stands tall among the public sector banks in India and is hailed as one among the well-managed public sector banks with excellent track record in all the key parameters of banking. The bank has the second largest ATM network in the public sector.Corporation Bank had the honor of playing host to many a distinguished personality. During the bank's Platinum Jubilee celebrations in 1976, the new administrative office building at Pandeshwar Mangalore was opened by Sri B.D.Jatti, the then-Vice-President of India. The bronze statue of Pandit Jawaharlal Nehru installed by the bank at the Traffic Island in front of its Corporate Office at Pandeshwar Mangalore, was unveiled by Mr. Justice E.S. Venkataramaiah, the then Chief Justice of India. In 1992, R. Venkataraman, the then-President of India, visited the bank to inaugurate its 85th anniversary celebrations and 60th anniversary of the bank's commencement of operation in Tamil Nadu state. In 1996, Mr. Justice A. M. Ahmadi, the then-Chief Justice of India, visited the bank to deliver the 90th year commemorative lecture. Corporation Bank House, the new premises of the bank's Car Street Mangalore branch, was inaugurated by Dr. Manmohan Singh, who was then the Union Finance Minister. Dr. C. Rangarajan, the then Governor of Reserve Bank of India, launched the prestigious deposit product Corp Classic during his visit to the bank's corporate office in 1997. The bank's new Millennium Building was inaugurated by Union Minister of State for Finance Vikhe Patil in 2000. In the same year, Union Finance Minister Yashwant Sinha launched the bank's CorpFast product at the Corporate Office.Corporation Bank was the first public sector bank, other than State Bank of India associates, to achieve 100% CBS (Core Banking Solutions) developed and implemented by Laser Soft Info systems Limited, Chennai.

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107 years of bankingCorporation Bank completed 107 years of existence on 12 March 2012. On the occasion of 107th Foundation Day celebrations held at TMA Pai Hall in Mangalore, five eminent personalities who made immense contributions to the society were honoured by the bank. They include, Dr. B.M. Hegde, eminent physician, Dr. B. Ramana Rao, eminent cardiologist, Mrs. Ela Bhatt, social entrepreneur and founder of SEWA, Dr. B.R. Shetty, entrepreneur and Dr. Kadri Gopalnath, eminent saxophonist.A new application for internet banking in iPad was launched on this occasion. A new caller tune for the bank for Bank's mobile/landline phones was also inaugurated in the function.The Centenary celebrations were launched by Shri V. Leeladhar, Deputy Governor, Reserve Bank of India with the Bank's Foundation Day lecture on 12 March 2005.As a part of the Bank's centenary celebrations, a number of programmes and projects were planned and executed. As a first step, the Bank has launched the Corp Kissan Card - debit card tied up with VISA international, to enable the farmers make timely purchases for agricultural operations. at Yeshwantpur-Malur in Kolar District on 13 March 2005. A modern public library was dedicated to the citizens of Mangalore in DK District, the birthplace of the Bank by Shri P. Chidambaram, Honorable Union Finance Minister on 2 March 2006. The library building also houses a Numismatic Museum and a multi purpose hall for intellectual activities. The Bank has also set up libraries in 25 villages and given away scholarship to 100 meritorious students of such villages for the pursuit of their higher education. Such libraries will be set up in 75 more villages in a phased manner. Corporation Bank - A Corporate Journey, the history of the Bank and Haji Abdullah Saheb a biography of the Bank's Founder President have been published on the occasion of the valedictory function of the Bank's Centenary Celebrations.

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ProjectsTo cater to the SME & Agricultural segments, the bank maintains exclusive SME loan centres in sixteen cities across India.The bank maintains online banking for its retail and corporate customers through a system called CorpNet.The bank also allows personal Internet banking through this application.The bank runs Project Sankalp, a business process re-engineering and organizational management projectThe bank has a wing named Corp Kiran, an association of wives of senior executives of Corporation Bank for understating activities related to corporate social responsibility (CSR).RatingsCRISIL has re-affirmed the following programmers of Corporation Bank:2 billion Bond issue AACertificate of Deposits Programme P1+Fixed Deposit Programme FAAAAwards•Corporation Bank is ranked First under “National Awards for Excellence in MSE Lending” and Second under “National Awards for Excellence in Lending to Micro Enterprises” for the year 2012-13 under Public Sector Banks from Ministry of Micro, Small and Medium Enterprises.•Corporation Bank has won the IBA Banking Technology Award 2012-13 for “Best Use of Mobility Technology in Banking”. Shri S R Bansal, Chairman & Managing Director of the Bank received the award at the function held at Mumbai on 27 January 2014.•For its impressive lending to SME sector, the Bank has been awarded an “ SKOCH ACHIEVERS AWARD” by SKOCH, Delhi, on 22.3.2014.•National Award for Assistance to Exporters from the President of India (1976–77)•Gem & Jewellery Export Promotion Council Award successively for 5 years from 1981 to 1985•Shiromani Award 1992 for Banking from Union Minister for Commerce•Best Bank Award for Excellence in Banking Technology from Institute for Development & Research in Banking Technology (IDRBT), Hyderabad (2001)•Best Bank Award for Innovative Usage and Application on INFINET (Indian Financial Network) from Institute for Development and Research in Banking Technology (IDRBT), Hyderabad (2002)•Best Bank Award for Delivery Channels from Institute for Development and Research in Banking Technology (IDRBT), Hyderabad (2003)

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Tuesday, May 2, 2023•Runner-up Awards in the “Best Online and Multi-channel Banking Team” and “Outstanding achiever of the year-corporate” categories in recognition of outstanding achievement in Banking Technology for 2004, instituted under the aegis of Indian Banks Association and Trade Fairs & Conferences International.• Best PSU Bank of the year by Bloom berg•UTV Financial Leadership Award 2011•Best Nationalized Bank by Financial Express (Source : Self Advertisement in Hindustan Times, Delhi, Front Page, 02 Apr 2011)Recognition• One of the Best 200 companies world over outside the United States having a turnover under a billion US$ - Forbes Global, Hong Kong, issue dated 27 October 2003•India’s Best Public Sector Bank - Business Today - KPMG Survey dated 7 December 2003•India’s Strongest and Asia’s Second Strongest - The Asian Banker, Singapore dated 15 December 2003•India’s Best Public Sector Bank - Outlook Money, 15 March 2004•One among the Best 200/100 companies in Asia/Pacific and Europe having turnover under a billion US $ - Forbes Global, Hong Kong dated 1 November 2004•One among India’s Best Public Sector Banks - Business Today, 26 February 2006 Products and servicesAnywhere bankingCorpConvenience International Debit CardCorp International Credit cardASBA facility for IPOInter Bank Payment Service (IMPS)Corp Money Purse VISA Gift CardCampus Cash cardCorp Travel CardFunds Transfer using ATMsOnline funds transfer using internetSMS Banking

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Mobile BankingInternet BankingM-commerceMulti city chequesOnline Tax PaymentPayment of Income Tax through Corporation Bank ATMsPay Roll AccountMillionaire RD accountCorp RecurThree-in-One accountGold CoinsCorp Home-Housing LoanCorp Vehicle - Loan for vehiclesCorp Vidya - Education LoanCorp Site LoanCorp Personal LoanCorp Consumer LoanCorp Doctor PlusCorp Mortgage - Funds against residential/commercial propertyCorp Vyapar - Short term credit for tradersCorp rental - Finance against future rent receivableCorp Shelter - Reverse mortgage loan for senior citizensCorp Mitra - Personal loans to employees of other companies holding salary accounts with corporation bankCorp Investor Shoppe - Health check up of financial portfolioNRI ServicesCash Management Services for corporatesFast Collection ServiceCorp NewGen SB account

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Dena BankType Public

Traded as BSE: 532121NSE: DENABANK


Founded 1938


Key peopleShri Ashwani Kumar[1] (Chairman and Managing Director)Shri A.K.Dutt (Executive Director)

Revenue 55673.7 million (US$920 million) (2010–11)[2]

Net income 6116.3 million (US$100 million) (2009–10)

Website http://www.denabank.com

http://en.wikipedia.org/wiki/Dena_Bank

http://en.wikipedia.org/wiki/Dena_Bank

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Tuesday, May 2, 2023Dena Bank (Hindi: देना बैंक; founded 26 May 1938) is one of the earliest banks in India, headquartered in Mumbai. Dena Bank was founded o n 26 May 1938, by the family of Devkaran Nanjee under the name Devkaran Nanjee Banking Company Ltd. It is one of the nationalized banks of India.It became a Public Limited Company in December 1939 and later the name was changed to Dena Bank Ltd. It has a network of over 1400 branches.The logo of Dena Bank depicts Goddess Lakshmi, the Goddess of Wealth, according to Hindu mythology. The 'D' in the logo reflects the dynamism, dedication and the drive towards customer satisfaction. HistoryDena Bank was founded by the family of Devkaran Nanjee under the name Devkaran Nanjee Banking Company Ltd. It found its new name, Dena Bank Ltd. (Devkaran Nanjee) when it was incorporated as a Public Company in December 1939. The bank was nationalized (and therefore dropped "Limited" from its name) in 1969 along with 13 other banks in India.Dena Bank features:Minor savings scheme.Credit card in rural India known as "Dena Krishi Sakh Patra"Drive-in ATM counter at Juhu, Mumbai.Smart card at selected branches in Mumbai.Customer rating system for rating the bank's services.The bank's head office is in Mumbai, with a network of 1291 branches (as at March 2011) across the country. The bank has a network of 496 ATMs across India, of which 105 ATMs are off site(as at March 2011). Dena Bank introduced core banking on March 2007 at its Mahim branch in Mumbai. 850 branches out of the 1122 branches including extension counters of the bank are scheduled for coverage.MilestonesOne among six public sector banks selected by the World Bank for sanctioning a loan of Rs.723 million for augmentation of Tier-II Capital under Financial Sector Developmental project in 1995.One among the few banks to receive the World Bank loan for technological upgradation and training.Launched a bond issue of Rs.921.3 million in November 1996.Maiden public issue of Rs.1.80 billion in November 1996.Introduced telebanking facility at metropolitan centres.


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IDBI BankType government BANK

Traded as BSE: 500116


Predecessor(s) IDBI Limited

Founded July 1964


Key people M.S. Raghavan (Chairman & MD)

Productsconsumer banking, corporate banking, finance and insurance, investment

banking, mortgage loans, private banking, private equity, wealth management, Agriculture Loan

Revenue 282.84 billion (US$4.7 billion) (2013)

Operating income 54.58 billion (US$910 million) (2013)


Total assets 3.23 trillion (US$54 billion) (2013)

Employees 15,465 (March 2013)

Website www.idbi.com

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Tuesday, May 2, 2023IDBI Bank Limited is an Indian government-owned financial service company, formerly known as Industrial Development Bank of India, headquartered in Mumbai, India. It was established in 1964 by an Act of Parliament to provide credit and other financial facilities for the development of the fledgling Indian industry.It is currently 10th largest development bank in the world in terms of reach, with 2678 ATMs, 1477 branches, including one overseas branch at Dubai, and 996 centers, including two overseas centres at Singapore & Beijing.IDBI Bank is on a par with nationalized banks and the SBI Group as far as government ownership is concerned. It is one among the 26 commercial banks owned by the Government of India.The Bank has an aggregate balance sheet size of INR 3.2 trillion as on 31 March 2013.HistoryOverview of development banking in IndiaDevelopment Banking emerged after the Second World War and the Great Depression in 1930s. The demand for reconstruction funds for the affected nations compelled in setting up of national institutions for reconstruction. At the time of Independence in 1947, India had a fairly developed banking system. The adoption of bank dominated financial development strategy was aimed at meeting the sectoral credit needs, particularly of agriculture and industry. Towards this end, the Reserve Bank concentrated on regulating and developing mechanisms for institution building. The commercial banking network was expanded to cater to the requirements of general banking and for meeting the short-term working capital requirements of industry and agriculture. Specialized development financial institutions (DFIs) such as the IDBI, NABARD, NHB and SIDBI, etc., with majority ownership of the Reserve Bank were set up to meet the long-term financing requirements of industry and agriculture.Formation of Industrial Development Bank of India (IDBI)The Industrial Development Bank of India (IDBI) was established in 1964 under an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India. In 1976, the ownership of IDBI was transferred to the Government of India and it was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and developing industry in India. IDBI provided financial assistance, both in rupee and foreign currencies, for green-field projects as also for expansion, modernization and diversification purposes. In the wake of financial sector reforms unveiled by the government since 1992, IDBI also provided indirect financial assistance by way of refinancing of loans extended by State-level financial institutions and banks and by way of rediscounting of bills of exchange arising out of sale of indigenous machinery on deferred payment terms.[citation needed]

http://en.wikipedia.org/wiki/Reserve_Bank_of_India


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Tuesday, May 2, 2023After the public issue of IDBI in July 1995, the Government shareholding in the Bank came down from 100% to 75%.IDBI played a pioneering role, particularly in the pre-reform era (1964–91), in catalyzing broad based industrial development in India in keeping with its Government-ordained ‘development banking’ charter.[citation needed]

Some of the institutions built with the support of IDBI are the Securities and Exchange Board of India (SEBI), National Stock Exchange of India (NSE), the National Securities Depository Limited (NSDL), the Stock Holding Corporation of India Limited (SHCIL), the Credit Analysis & Research Ltd, the Exim Bank (India), the Small Industries Development Bank of India (SIDBI) and the Entrepreneurship Development Institute of India.Conversion of IDBI into a commercial bankA committee formed by RBI under chairmanship of S.H.Khan recommended the development financial institution (IDBI) to diversify its activity and harmonise the role of development financing and banking activities by getting away from the conventional distinction between commercial banking and developmental banking. To keep up with reforms in financial sector, IDBI reshaped its role from a development finance institution to a commercial institution. With the Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003, IDBI attained the status of a limited company viz., IDBI Ltd.Subsequently, in September 2004, the Reserve Bank of India incorporated IDBI as a 'scheduled bank' under the RBI Act, 1934. Consequently, IDBI, formally entered the portals of banking business as IDBI Ltd. from 1 October 2004. The commercial banking arm, IDBI BANK, was merged into IDBI in 2005.Acquisition of United Western BankIn 2006, IDBI Bank acquired United Western Bank Satara in a rescue. By acquiring UWB, IDBI Bank more than doubled the number of its branches from 195 to 425.Listings and shareholdingIDBI Bank's equity shares are listed on Bombay Stock Exchange and the National Stock Exchange of India.As on 31 March 2014, Government of India held 76.72% shares in IDBI Bank. Over 4 lakh public shareholders owned 8.75% of its shares. Insurance companies held approx. 12.32% of the shares while remaining 7.21% shares were held by others.EmployeesAs on 31 March 2013, the bank had 15,465 employees, out of which 197 were employees with disabilities. The average age of bank employees on the same date was 33 years.[The bank reported business of INR 25.64 crores per employee and net profit of INR 12.17 lakhs per employee during the FY 2012-13.The company incurred INR 1,538 crores towards employee benefit expenses during the same financial year.Awards and recognitionsIDBI Bank was ranked #1197 in the Forbes Global 2000 in May 2013.It received the 'Overall Best Bank' and 'Best Public Sector Bank' awards in the Dun & Bradstreet Banking Awards, 2011.In 2011, it received Banking Technology awards for best use of Business Intelligence and the best Risk Management from Indian Banks Association.

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Indian BankType Public

Traded as BSE: 523465NSE: INDIANB

Industry Financial servicesFounded 1907

Headquarters Chennai, India, {{{location city}}},

Key people T.M.Bhasin (Chairman & MD)

Revenue 2119.88 billion (US$35 billion) (2012)

Net income 135 billion (US$2.2 billion) (2012)Total assets 11218 billion (US$190 billion) (2011)Employees 18782

Website www.indianbank.in

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Tuesday, May 2, 2023Indian Bank is an Indian state-owned financial services company headquartered in Chennai, India. It has 19000 employees, 2100 branches and is one of the big public sector banks of India. It has overseas branches in Colombo, Jaffna, Sri Lanka, Singapore, and 229 correspondent banks in 69 countries. Since 1969 the Government of India has owned the bank, which celebrated its centenary in 2007.HistoryEarly formation and expansionIn the last quarter of 1906, Madras (now Chennai) was hit by the worst financial crisis the city was ever to suffer. Of the three best-known British commercial names in 19th century Madras, one crashed; a second had to be resurrected by a distress sale; and the third had to be bailed out by a benevolent benefactor. Arbuthnot & Co, which failed, was considered the soundest of the three. Parry's (now EID Parry), may have been the earliest of them and Binny & Co.'s founders may have had the oldest associations with Madras, but it was Arbuthnot, established in 1810, that was the city's strongest commercial organization in the 19th Century. A key figure in the bankruptcy case for Arbuthnot's was the Madras lawyer, V. Krishnaswamy Iyer; he went on to organize a group of Chettiars that founded Indian Bank. Annamalai and Ramaswami Chettiar founded Indian Bank (IB) on 5 March 1907, and it commenced operations 15 August 1907 with its head office in Parry's Building, Parry Corner, Madras.Post Independence of IndiaAfter the war, in 1948, it reopened its branch in Colombo. Indian Bank also reopened its branches in Burma, Malayan and Singapore, the last in 1962. The Burmese government nationalized all foreign banks, including Indian Bank's branch, in 1963.The 1960s saw IB expand domestically as it acquired Rayalaseema Bank (est. 1939), Mannargudi Bank (est. 1932), Bank of Alagapuri, Salem Bank (est. 1925), and Trichy United Bank. (Trichy United was the result of the 1965 merger of Woraiyur Commercial Bank, the Palakkarai Bank and the Tennur Bank.) These were all small banks with the result that all the acquisitions added only about 38 branches to IB's network. Trichy United had five branches and its acquisition in 1967 brought the number of IB branches up to 210.Then on 19 July 1969 the Government of India nationalized 14 top banks, including Indian Bank. One consequence of the nationalization was that the Malaysian branches of nationalized Indian banks were forbidden to continue to operate as branches of the parent. At the time, Indian Bank had three branches, and Indian Overseas Bank, and United Commercial Bank had eight between them. In 1973 the three established United Asian Bank Berhad to amalgamate and take over their Malaysian operations.

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. Indian Overseas BankType Public

Traded as BSE: 532388

Industry Bankingcapital markets

Founded Madras, 10 February 1937

Headquarters Chennai, India, {{{location city}}},

Key people M. Narendra(chairman & MD)

Products Loans, credit cards, savings, investment vehicles etc.

Revenue 3576 billion (US$59 billion) (2012)Net income 196 billion (US$3.3 billion)Total assets 9217 billion (US$150 billion) (2012)

Website www.iob.in

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Indian Overseas Bank (IOB) is a major bank based in Chennai (Madras), with about 3350 domestic branches, 3 extension counters and six branches overseas as of 31 March 2012. Indian Overseas Bank has an ISO certified in-house Information Technology department, which has developed the software that 3257 branches use to provide online banking to customers; the bank has achieved 100% networking status as well as 100% CBS status for its 3350 branches. IOB also has a network of about 2400 ATMs all over India and IOB's International VISA Debit Card is accepted at all ATMs belonging to the Cash Tree and NFS networks. IOB offers internet Banking (E-See Banking) & Mobile Banking and is one of the banks that the Govt. of India has approved for online payment of taxes. The bank's business more than doubled in the last four years.The net profit for the year ended 31 March 2012 stood at Rs 10501 million. Total income stood at Rs 195781 million as against Rs 133265.6 million registered during the same period last financial year. For the full year, the total business grew by 24 per cent to Rs 3,217 billion from Rs 2,590 billion.IOB has planned to achieve total business of Rs 3.85 trillion to Rs 4 trillion this fiscal.HistoryPre-World War IIIn 1937, Thiru.M. Ct. M. Chidambaram Chettyar established the Indian Overseas Bank (IOB) to encourage overseas banking and foreign exchange operations. IOB started up simultaneously at three branches, one each in Karaikudi, Madras, and Rangoon (Yangon). It quickly opened a branch in Penang and another in Singapore (1941). The bank served the Nattukottai Chettiars, who were a mercantile class that at the time had spread from Chettinad in Tamil Nadu state to Ceylon (Sri Lanka), Burma (Myanmar), Malaya, Singapore, Java, Sumatra, and Saigon. As a result, from the beginning IOB specialized in foreign exchange and overseas banking (see below). Due to the war, IOB lost its branches in Rangoon and Penang, and Singapore, though the branch in Singapore resumed operations in 1942 under Japanese supervision.After World War IIIn 1963 the revolutionary government in Burma nationalized Indian Overseas Bank's in Rangoon, Mandalay, and Moulmein, which became People's Bank No. 4.[1] In the 1960s, the banking sector in India was consolidating through the merger of weak private sector banks with stronger ones; IOB absorbed five banks, including Kulitali Bank (est. 1933).Then in 1969 the Government of India nationalized IOB. At one point, probably before nationalization, IOB had twenty of its eighty branches located overseas. However, Malaysian law forbade foreign government ownership of banks in Malaysia. Therefore, United Commercial Bank, Indian Overseas Bank, and Indian Bank contributed their operations in Malaysia to a new joint-venture bank incorporated in Malaysia, United Asian Bank, with each of the three parent banks owning a third of the shares. At the time, Indian Bank had three branches, and Indian Overseas Bank and United Commercial Bank had eight between them.After nationalization Indian Overseas Bank, like all the nationalized banks, turned inward, emphasizing the opening of branches in rural India. Still, in 1977 it opened a branch in Seoul, Korea.In 1988–89, IOB acquired Bank of Tamil Nadu, and its 99 branches, in a rescue. Bank of Tamil Nadu (or Bank of Tamilnad), had been established in 1903 as the South India Bank in Tirunelveli.

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The new millenniumIn 2000, IOB engaged in an initial public offering (IPO) that brought the government's share in the bank's equity down to 75%. In 2001 IOB acquired the Mumbai-based Adarsha Janata Sahakari Bank, which gave it a branch in Mumbai. Then in 2009 IOB took over Shree Suvarna Sahakari Bank, which was founded in 1969 and had its head office in Pune. Shree Suvarna Sahakari Bank had been in administration since 2006. It had nine branches in Pune, two in Mumbai and one in Shirpur. The total employee strength was estimated to be little over 100.International expansionAs mentioned above, IOB was international from its inception with branches in Rangoon, Penang, and Singapore. In 1941, IOB opened a branch in Malaya that presumably closed almost immediately because of the war.In 1946, after the War, IOB opened a branch in Ceylon. More overseas branches followed quickly. In 1947, IOB opened a branch in Bangkok and re-opened others. In 1948 United Commercial Bank (see below) opened a branch in Malaya. In 1949, IOB opened a branch in Bangkok.Then in 1963, The Burmese government nationalised IOB's branch in Rangoon. In 1973, IOB, Indian Bank and United Commercial Bank established United Asian Bank Berhad in Malaysia. (Indian Bank had been operating in Malaysia since 1941 and United Commercial Bank Limited had been operating there since 1948.) The banks set up United Asian to comply with the Banking Law in Malaysia, which prohibited foreign government banks from operating in the country. Also, IOB and six Indian private banks established Bharat Overseas Bank as a Chennai-based private bank to take over IOB's Bangkok branch.In 1977: IOB opened a branch in Seoul. Two years later, IOB opened a foreign currency banking unit in Colombo, Sri Lanka.International expansion slowed thereafter, for a while. In 1992 Bank of Commerce (BOC), a Malaysian bank, acquired United Asian Bank (UAB).In the new millennium, international expansion picked up once again. In 2007, IOB took over Bharat Overseas Bank. Three years later, Malaysia awarded a commercial banking license to a locally incorporated bank to be jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra Bank. The new bank, India International Bank (Malaysia), will reside in Kuala Lumpur, which has a large population of Indians. Andhra Bank will hold a 25% stake in the joint-venture, Bank of Baroda will own 40% and IOB the remaining 35%.

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Oriental Bank of CommerceType Public (BSE: 500315, NSE: ORIENTBANK)

Industry BankingFinancial services

Founded 19 February 1943Headquarters Gurgaon, Haryana, India

Key people S.L.Bansal(Chairman & MD)

Products

Investment bankingConsumer bankingCommercial bankingRetail bankingPrivate bankingAsset managementPensionsMortgagesCredit cards

Revenue 11457.17 crores (2010)Net income 1134.68 crores (2010)Total assets 8237.958 crores (2010)Employees 15,358 (2010)Website www.obcindia.co.in

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Oriental Bank of Commerce is an India-based bank established in Lahore (then a city of British India, and currently in Pakistan), is one of the public sector banks in India.HistoryOriental Bank of Commerce made a beginning under its Founding Father, Late Rai Bahadur Lala Sohan Lal, the first Chairman of the Bank. Within four years of coming into existence, the Bank had to face partition. Branches in the newly formed Pakistan had to be closed down and the Registered Office had to be shifted from Lahore to Amritsar. Late lala Karam Chand Thapar, the then Chairman of the Bank, in a unique gesture honoured the commitments made to the depositors from Pakistan and paid every rupee to its departing customers.[citation needed]

The Bank has witnessed many ups and downs since its establishment. The period of 1970-76 is said to be the most challenging phase in the history of the Bank.[citation needed] At one time profit plummeted to 175, that prompted the owner of the bank, the Thapar House, to sell / close the bank. Then employees and leaders of the Bank came forward to rescue the Bank. The owners were moved and had to change their decision of selling the bank and in turn they decided to improve the position of the bank with the active cooperation and support of all the employees. Their efforts bore fruits and performance of the bank improved significantly. This was the turning point in the history of the bank.[citation needed]

The bank was nationalized on 15 April 1980. At that time total working of the bank was 483 crores having 19th position among the 20 nationalized banks. Within a decade the bank turned into one of the most efficient and best performing banks of India.[citation needed]

The bank has progressed on several fronts crossing the Business Mix mark of 2 lac crores as on 31 March 2010 making it the seventh largest Public Sector Bank in India, achievement of 100% CBS, reorienting of lending strategy through Large & Mid Corporates and establishment of new wings viz., Rural Development and Retail & Priority Sector. The bank has to its utmost credit lowest staff cost with highest productivity in the Indian banking industry.[citation needed]

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Name PeriodKaram Chand Thapar 1946 to 1961

L. M. Thapar 1961 to 1969

R. P. Oberoi 1973 to 1976

M. K. Vig 1976 to 1983

P. S. Gopalakrishnan 1984 to 1988

S. P. Talwar 1988 to 1990

S. K. Soni 1990 to 1996B. D. Narang 2000 to 2005

K. N. Prithviraj 2005 to 2007

T. Y. Prabhu August 2009 to January 2011

Nagesh Paidah, Dalbir Singh 1996 to 2000

S.L. Bansal March 2012 onwards

ChairpersonsThe Chairpersons (CMD) of the bank were as under:

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OverviewThe bank offers features such as internet banking, phone banking NRI banking etc. However, it does not allow online banking access from outside India.The Bank has launched yet another people's participation in the planning process at grass root level essentially to tackle the maladies of poverty. The Grameen Projects venture aims to alleviate poverty plus identify the reasons responsible for the failure or success.OBC is already implementing a GRAMEEN PROJECT in Dehradun District (UP) and Hanumangarh District (Rajasthan). Formulated on the pattern of the Bangladesh Grameen Bank, the Scheme has a unique feature of disbursing small loans ranging from 75 (~US $1.5) onwards. The beneficiaries of the Grameen Project are mostly women. The Bank is engaged in providing training to rural folk in using locally available raw material to produce pickles, jams etc. This has provided self-employment and augmented income levels thus reforming lives of rural folk and encouraging cottage industries in rural areas.[citation

needed]

OBC launched yet another unique[citation needed] scheme christened 'The Comprehensive Village Development Programme' on the auspicious day of Baisakhi, the 13th of April 1997 at three villages in Punjab namely Rurki Kalan (Distt. Sangrur), Raje Majra (Distt. Ropar) and Khaira Majha (Distt. Jaladhar) and two villages in Haryana, namely Khunga (Distt. Jind) and Narwal (Distt. Kaithal). The pilot launch was a great success. Emboldened by the success, Bank extended the programme to more villages. At present, it covers 15 villages; 10 in Punjab, 4 in Haryana and 1 in Rajasthan. The programme focuses on providing a comprehensive and integrated package providing rural finance to the villagers with Village Development as its focus, thus contributing towards infrastructural development and augmentation of income for each farmer of the village. The Bank has implemented 14 point action plan for strengthening of credit delivery to women and has designated 5 branches as specialized branches for women entrepreneurs.[citation needed]

Amalgamation of Global Trust BankOn 14 August 2004, Global Trust Bank Limited (GTB) was amalgamated into OBC. GTB was a leading private sector bank in India that was associated with various financial discrepancies leading to a moratorium being imposed by RBI shortly before being merged into OBC.

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Punjab National BankType Public

Traded asBSE: 532461NSE: PNBCNX Nifty Constituent

Industry Banking, Financial servicesFounded 1895 Founders Lala Lajpat Rai

Headquarters New Delhi, India, {{{location city}}}Key people K R Kamath (Chairman & MD)

Products

Credit cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, wealth management

Revenue INR 474 billion (US$ 8.7 billion) (2013)Net income INR 49.54 billion (US$ 906 million) (2013)Total assets INR 4.97 trillion (US$ 90.9 billion) (2013)

Owners Government of IndiaEmployees 62,392 (March 2013)

Website www.pnbindia.in

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Punjab National Bank (PNB) is an Indian financial services company based in New Delhi, India. Founded in 1894, the bank has over 5,800 branches and over 6,000 ATMs across 764 cities. It serves over 80 million customers.Punjab National Bank is one of the Big Four banks of India, along with State Bank of India, ICICI Bank and Bank of Baroda. It is the third largest bank in India in terms of asset size (US$6.6 billion by the end of FY 2012-13). The bank has been ranked 248th biggest bank in the world by the Bankers' Almanac.PNB has a banking subsidiary in the UK, as well as branches in Hong Kong, Dubai and Kabul. It has representative offices in Almaty (Kazakhstan), Dubai, Shanghai (China), Oslo (Norway) and Sydney (Australia).HistoryPunjab National Bank was registered on 19 May 1894 under the Indian Companies Act, with its office in Anarkali Bazaar, Lahore. The founding board was drawn from different parts of India professing different faiths and a varied back-ground with, however, the common objective of providing country with a truly national bank which would further the economic interest of the country. PNB's founders included several leaders of the Swadeshi movement such as Dyal Singh Majithia and Lala Harkishan Lal, Lala Lalchand, Shri Kali Prosanna Roy, Shri E.C. Jessawala, Shri Prabhu Dayal, Bakshi Jaishi Ram, and Lala Dholan Dass. Lala Lajpat Rai was actively associated with the management of the Bank in its early years. The board first met on 23 May 1894. Ironically, the PNB Website now claims Lala Lajpat Rai to be the founding father, surpassing Rai Mul Raj and Dyal Singh Majithia. The bank opened for business on 12 April 1895 in Lahore.PNB has the distinction of being the first Indian bank to have been started solely with Indian capital that has survived to the present. (The first entirely Indian bank, Oudh Commercial Bank, was established in 1881 in Faizabad, but failed in 1958.)PNB has had the privilege of maintaining accounts of national leaders such as Mahatma Gandhi, Jawahar Lal Nehru, Lal Bahadur Shastri, Indira Gandhi, as well as the account of the famous Jalianwala Bagh Committee.

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Tuesday, May 2, 2023Timeline1900: PNB established its first branch outside Lahore in Rawalpindi. Branches in Karachi and Peshawar followed.1940: PNB absorbed Bhagwan Dass Bank, a scheduled bank located in Delhi Circle.1947: at the Partition of India and the commencement of Pakistani independence, PNB lost its premises in Lahore, but continued to operate in Pakistan. Partition forced PNB to close 92 offices in West Pakistan, 33% of the total number, and which held 40% of the total deposits. PNB still maintained a few caretaker branches. On 31 March 1947, even before Partition, PNB had decided to leave Lahore and transfer its registered office to India; it received permission from the Lahore High Court on 20 June 1947, at which time it established a new head office in New Delhi.1951: PNB acquired the 39 branches of Bharat Bank (est. 1942); Bharat Bank became Bharat Nidhi Ltd.1960: PNB again shifted its head office, this time from Calcutta to Delhi.1961: PNB acquired Universal Bank of India and amalgamated Indo Commercial Bank (est. 1932 by S. N. N. Sankaralinga Iyer) in a rescue.1963: The revolutionary government in Burma nationalized PNB's branch in Rangoon (Yangon), which became People's Bank No. 7.September 1965: After the Indo-Pak war the government of Pakistan seized all the offices in Pakistan of Indian banks. PNB also had one or more branches in East Pakistan (Bangladesh).1969: The Government of India (GOI) nationalized PNB and 13 other major commercial banks, on 19 July 1969.1976 or 1978: PNB opened a branch in London.1986 The Reserve Bank of India required PNB to transfer its London branch to State Bank of India after the branch was involved in a fraud scandal.1986: PNB acquired Hindustan Commercial Bank (est. 1943) in a rescue. The acquisition added Hindustan's 142 branches to PNB's network.1993: PNB acquired New Bank of India, which the GOI had nationalized in 1980. New Bank of India had acquired Chawla Bank (est. 1913) in 1969.1998: PNB set up a representative office in Almaty, Kazakhstan.2003: PNB took over Nedungadi Bank, the oldest private sector bank in Kerala. At the time of the merger with PNB, Nedungadi Bank's shares had zero value, with the result that its shareholders received no payment for their shares. PNB also opened a representative office in London.2004: The next year, PNB established a branch in Kabul, Afghanistan and a representative office in Shanghai. PNB also established an alliance with Everest Bank in Nepal that permits migrants to transfer funds easily between India and Everest Bank's 12 branches in Nepal. Currently, PNB owns 20% of Everest Bank.2004: PNB opened a representative office in Dubai.2006: Two years later, PNB established PNBIL – Punjab National Bank (International) – in the UK, with two offices, one in London, and one in South Hall. Since then it has opened more branches, this time in Leicester, Birmingham, Ilford, Wembly, and Wolverhampton. PNB also opened a branch in Hong Kong.January 2009: PNB established a representative office in Oslo, Norway. PNB hopes to upgrade this to a branch in due course.

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Tuesday, May 2, 2023In 2010, PNB purchased a small minority stake in Kazakhstan-based JSC Dena Bank. Within the year PNB increased its ownership and now PNB owns 84% of what has become JSC (SB) PNB. The subsidiary has branches in Almaty, Astana, Kangandu, and Pavlodar. Dena Bankwas established on 20 October 1992 in Pavlodar.Also, in January 2010, PNB established a subsidiary in Bhutan. PNB owns 51% of Druk PNB Bank, which has branches in Thimpu, Phuentsholing, and Wangdue. Local investors own the remaining shares. Then on 1 May, PNB opened its branch in Dubai's financial center.September 2011: PNB opened a representative office in Sydney, Australia.December 2012: PNB signed an agreement with US based life Insurance company MetLife to acquire a 30% stake in MetLife's Indian affiliate MetLife India Limited. The company would be renamed PNB MetLife India Limited and PNB would sell MetLife's products in its branches.Financial performance# Particulars FY 2008-09 FY 2009-10 FY 2010-11 FY 2011-12 FY 2012-13

A Deposits (' INR crores) 209,761 249,330 312,899 379,588 391,560

B Advances (' INR crores) 154,703 186,601 242,107 293,775 308,725

C Total Business (A+B) (' INR crores) 364,464 435,931 555,006 673,363 700,285

D Total Assets (' INR crores) 246,919 296,633 378,325 458,192 478,877

F Net Profit (' INR crores) 3,091 3,905 4,433 4,884 4,748

G Business/Employee (' INR lakhs) 655 808 1,018 1,132 1,165

I Return on assets (%) 1.39 1.44 1.34 1.19 1.00

J Gross NPAs (%) 1.60 1.71 1.79 2.93 4.27

K Net NPAs (%) 0.17 0.53 0.85 1.52 2.35

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Tuesday, May 2, 2023OperationsThe bank had 5,874 branches in India as on 31 March 2013. It also had 4 overseas branches out of which 2 were in Dubai and one each in Dubai and Kabul. The total business of overseas branches was US$ 9 billion as on 31 March 2013, which accounted for 6.98% of its total business. Bank also has one joint venture in Nepal - Everest Bank Limited which has 48 branches.Listings and shareholdingPNB's equity shares are listed on Bombay Stock Exchange and the National Stock Exchange of India. It is a constituent of the S&P CNX Nifty at the NSE.

Shareholders (as on 31-Dec-2013) Shareholding

Promoter Group (Govt. of India) 58.87%

Foreign Institutional Investors (FII) 17.51%

Insurance Companies 15.46%

Individual shareholders 04.05%

Banks/Financial Institutions/Mutual Funds/UTI 03.02%

Others 01.09%

Total 100.0%

EmployeesAs on 31 March 2013, the bank had 63,292 employees, out of which 11,594 were women (18%). It also had 919 employees with disabilities on the same date (1.45%).The average age of bank employees on the same date was 46 years.The bank reported business of INR 11.65 crores per employee and net profit of INR 8.06 lakhs per employee during the FY 2012-13. The company incurred INR 5,751 crores towards employee benefit expenses during the same financial year.

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Awards and recognitionsPunjab National Bank was ranked #717 in the Forbes Global 2000 in May 2013.Punjab National Bank was ranked #26 in the Fortune India 500 ranking of 2011.PNB was awarded the 'Best Public Sector Bank' by CNBC TV18 in 2012.The bank was recognized as the 'most socially responsive bank' by Business world and PwC in 2012.In 2011, it received Golden Peacock Award for "Excellence in Corporate Social Responsibility" and "National Training Award".InitiativesThe bank incurred INR 3.24 crores on CSR activities like medical camps, farmer trainings, tree plantations, blood donation camps etc. during the FY 2012-13.

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Punjab & Sind BankType Public


Founded 24 June 1908Headquarters Rajendra Place New Delhi, India

Key people S.JATINDER BIR SINGH,I.A.S(C.M.D.),SHREE K.K.SANSI & M.K.JAIN (E.Ds)

Products FinanceWebsite www.psbindia.com

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Tuesday, May 2, 2023Punjab & Sind Bank (P&SB) is a major Public Sector bank in Northern India and working 100% on CBS platform. The banks government shareholding is 81.42%. Of its 1320 branches and 800 ATM spread throughout India, 530 Branches are in Punjab state. The bank's corporate headquarters is in New Delhi. Its net profit is 339 crores and net NPA is 2.14% for the year ending 2012-13. The banks net profit for the quarter ending June 2013 is 122 crores. Total business of the bank is 1,42,000 crores. Business per employee is 14 crore & business per branch is 108 crores.HistoryIn 1908, leading figures in Amritsar such as Bhai Vir Singh, Sir Sunder Singh Majitha and Sardar Tarlochan Singh founded Punjab & Sind Bank to help the weaker sections of society.On 15 April 1980 Punjab & Sind Bank was among six banks that the Government of India nationalized in the second wave of nationalizations. (The first wave had been in 1969 when the government nationalized the top 14 banks.)At some point in the 1960s Punjab & Sind Bank established a branch in London. In 1991 Bank of Baroda acquired Punjab & Sind Bank's London branch at the behest of the Reserve Bank of India following Punjab & Sind's involvement in the Sethia fraud in 1987.Since 2004 Punjab & Sind has again shown growth of more than 40% year on year. Recently its IPO received tremendous response from the public and the issue was oversubscribed by more than 50 times. Recently the bank crossed a mark of Rs 1 lac crore in business.Setluj Gramin Bank is a sponsored bank by Punjab & Sind Bank.

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Tuesday, May 2, 2023Syndicate BankType Government-owned corporation

Traded as BSE: 532276NSE: SYNDIBANK


Founded Udupi, 1925 (as Canara Industrial and Banking Syndicate Limited)

Headquarters Manipal, Karnataka, India

Key people Shri M Anjaneya Prasad and Shri T K Srivastava(Executive Directors)

Products

Finance and insuranceConsumer BankingCorporate Banking

Investment BankingInvestment Management

Private EquityMortgages

Credit Cards

Revenue 3524 billion (US$58 billion) as on 31 Dec 2013

Net income 2004 crore (US$330 million) for the fiscal year ended 31 March 2013

Employees 25,569 (2010)

Website www.syndicatebank.in

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Tuesday, May 2, 2023Syndicate Bank is one of the oldest and major commercial banks of India. It was founded by T M A Pai, Upendra Pai and Vaman Kudva. At the time of its establishment, the bank was known as Canara Industrial and Banking Syndicate Limited. The bank, along with 13 major commercial banks of India, was nationalized on 19 July 1969, by the Government of India.BusinessThe business with a capital of 8000 rupees. T M A Pai, Upendra Pai and Vaman Kudva strove together to set up the bank. The first branch of the bank started its operations in 1928 at Udupi, in Dakshin Kannada district in Karnataka state. By 1937, it had secured its membership as a clearing house at Mumbai. The primary objective of the business was to extend the financial assistance to local weavers. Initially, the bank collected as low as two annas from the door steps of the depositors daily through its agents. This type of system wherein the agents of the bank come doorsteps to collect deposit is still prevailing in India and is referred to as the Pigmy Deposit SchemeMergersAs time progressed, twenty banks merged with the Canara Industrial and Banking Syndicate Limited including the Maharastra Apex Bank Limited and Southern India Apex Bank Limited. The name of the bank was changed to Syndicate Bank Limited in 1964 and the head office of the bank was shifted to Manipal. The bank expanded its operations not only on the domestic front but also overseas. It has a branch in London and the bank manages National Exchange Co. in Doha and Musandam Exchange Co. in Muscat. By 1978, it opened its 1000th branch at Hauz Khas, Delhi. Currently it has over 3300 branches and all branches are offering core banking-e-banking services under anywhere-anytime-anyhow banking. Syndicate Bank has one branch in London, United Kingdom.Regional rural banksSyndicate Bank sponsored the first regional rural bank in India by name Prathama Bank, in Moradabad district Uttar Pradesh on 2 October 1975. The stocks of the Syndicate Bank are listed on Bombay Stock Exchange, National Stock Exchange, Mangalore Stock Exchange and Bangalore Stock Exchange. Syndicate Bank made a partnership with UNEP to initiate a successful solar loan programme. It is a four-year $75855.6 million effort, launched in April 2003 to help accelerate the market for financing solar home systems in southern India.Andhra Pragathi Grameena BankNorth Malabar Gramin Bank

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Tuesday, May 2, 2023In the newsMr. Sudhir Kumar Jain has assumed charge as chairman & managing director of Syndicate Bank on 8 July 2013. Prior to assuming charge as chairman & managing director, he was Executive Director of Bank of Baroda.Recently, Syndicate Bank has achieved a rare feat of opening one million customer accounts in a span of 3 months.Madhukant Giridharlal Sanghvi took over as the CMD of the Bank on 1 Mar 2012.Public sector lender Syndicate Bank on 31,August,2009 said Vasant Golecha Jain has been appointed as chairman and managing director till 29 February 2012.It has also sponsored a regional rural bank in Karnataka called Karnataka Vikas Grameena Bank(formed after amalgamation of four other RRB's) which stands fourth in India.It has introduced five new products namely SyndDoctor, SyndGranite, SyndTextiles, SyndCashew and SyndTransport on its 88TH FOUNDATION DAY, besides opening 88 new branches.Bank has been conferred “Best Bank Award” amongst all the Banks in the RSETI movement by Sri Jairam Ramesh, Hon’ble Minister for Rural Development, Government of India. Bank has been awarded Banking Excellence Award 2013 for the second best public Bank in overall performance by State forum of Bankers Club Kerala. Bank has been awarded for Record Breaking Performance during Synd LIC Saptah (2 to 7 December 2013) by marketing 15119 policies Highest by any of the Bancassurance Partners during a week by Life Insurance Corporation of IndiaAs part of a Bank’s brand building exercise and to harness its image, Bank has repositioned its Logo by changing the colour combinations. The combinations of Orange, Yellow, Black & White colours give uniqueness to the Logo. The repositioning of logo is aimed at providing a more clear understanding for which the organisation stands for, build loyalty from customers, establishing a brand identity, and also to provide a more contemporary look to its logo in a continuously changing & dynamic business environment.Bank is recruiting around 3000 young officers to replace retiring officers.Corruption AllegationsOn August 2014, CBI arrested Bank Chairman and Managing Director S K Jain for allegedly accepting a bribe of Rs 50 lakh to enhance the credit limit of some companies.Government of India, Ministry of Finance, Department of Financial Services vide their letter No. File No. 01/10/2012/ Vig (Part-I) dated August 04, 2014 has placed Shri Sudhir Kumar Jain under deemed suspension with effect from August 02, 2014.

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UCO BankType Public

Traded as NSE: UCOBANK&section=7 UCOBANKBSE: 532505


Founded 6 January 1943

Headquarters Kolkata, West Bengal, India, {{{location_city}}}, {{{location_country}}}

Area served Worldwide

Key people Arun Kaul(Chairman and Managing Director)

ProductsConsumer banking, corporate banking, finance and

insurance, investment banking, mortgage loans, private banking, wealth management

Profit 1510 Crores (2013)

Owners Government of India

Employees 24,109 (2013)

Website www.ucobank.com

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Tuesday, May 2, 2023Uco Bank, formerly United Commercial Bank, established in 1943 in Kolkata, is one of the oldest and major commercial banks of India. Ghanshyam Das Birla, an eminent Indian industrialist, during the Quit India movement of 1942, had conceived the idea of organizing a commercial bank with Indian capital and management, and the United Commercial Bank Limited was incorporated to give shape to that idea. The bank was started with Kolkata as its head office with an issued capital of 2 crores and a paid-up capital of 1 crore. During FY 2013-14, its total business was Rs 3550 billion. Based on 2014 data, it is ranked 1860 on Forbes Global 2000 List.The bank, along with 13 major commercial banks of India, was nationalized on 19 July 1969 by the Government of India. Its name was changed to UCO Bank, in 1985, by an act of parliament as a bank in Bangladesh existed with the name “United Commercial Bank”, which caused confusion in the international banking arena. As of 6 January 2013 the bank had 2500 Service Units spread all over India, with two overseas branches each in Singapore and Hong Kong. The bank has 44 Zonal Offices spread all over India.UCO Bank's headquarters is on B.T.M. Sarani, Kolkata.Mr. Arun Kaul is currently the Chairman and Managing director of UCO Bank.G.D Birla, the doyen of Indian Industrial renaissance, conceived the idea of an Indian supporting bank after the historic "Quit India" movement in 1942. On 6 January 1943, the United Commercial Bank was established with its registered and head office at Kolkata, and with Birla as its chairman. The very first Board of Directors included eminent personalities of India drawn from many fields. The bank opened 14 branches simultaneously across India.After World War II, United Commercial Bank opened several overseas branches. The first, in 1947, was in Rangoon ([Yangon]]). Branches in Singapore (1951), Hong Kong (March 1952), London (1953), and Malaysia followed. In 1963 the revolutionary government in Burma nationalized United Commercial Bank's three branches there, which became People's Bank No. 6.On 15 September 1967, United Commercial acquired Jalpaiguri Banking and Trading Corporation.The Government of India nationalized United Commercial Bank on 19 July 1969. The nationalized bank continued the operations of the overseas branches in London, Singapore, and Hong Kong. However, Malaysian law forbade foreign government ownership of banks in Malaysia. Therefore, United Commercial, Indian Overseas Bank, and Indian Bank contributed their operations in Malaysia to a new joint-venture bank incorporated in Malaysia, United Asian Bank, with each of the three parent banks owning a third of the shares. At the time, Indian Bank had three branches, and Indian Overseas Bank and United Commercial Bank had eight between them. In 1991, Bank of Commerce Bhd, a Malaysian bank, acquired United Asian Bank; in time CIMB came to own Bank of Commerce.In 1998, UCO closed its London branch. Bank of Baroda acquired the assets and liabilities, but not the personnel, who were made redundant.

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Tuesday, May 2, 2023StructureBoard of DirectorsAs of September 2013, the UCO Bank Board of Directors has ten members:Shri Arun Kaul (Chairman & Managing Director)Shri S.Chandrasekharan(Executive Director)Shri J.K. Garg(Executive Director)Shri Pravin Rawal(Director)Prof. Sunil Kumar Maheshwari(Director)CA Manoj Kumar Gupta(Director)Shri B.P.Vijayendra(Director)Shri D.N.Thakur(Director)Mr. Partha Chanda(Director)Md. Salahuddin Ansari(Director)DepartmentsAs of January 2013, UCO Bank's functionality is distributed amongst 32 Departments:CMD's SecretariatED's Secretariat (1)ED's Secretariat (2)AGM, Secy. to Board and Executive Secy. to CMDOperations & Services DepartmentAudit & InspectionFlagship CorporateMid CorporateAgriculture & Rural Business and Financial Inclusion- includes Small Enterprises, Priority Sector, Regional Rural Bank (RRB) and Financial InclusionRetailInsurance Marketing WingRisk Management

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Tuesday, May 2, 2023Human Resource ManagementFinanceGeneral AdministrationSecurityPrinting & StationeryCredit MonitoringLawVigilancePersonnel ServicesManagement Audit & HR AuditTreasury & International Wing (T&IW) which includes Treasury & Investment Management and International WingIPO CellStrategic PlanningMIS Task ForceRajbhasha(National Language)Corporate CommunicationInformation TechnologyRecoverye-Governance & Business Process Re-engineeringRegional ManagementThe governance of the Bank all around the nation's respective regional areas is managed by a network of 41 Zonal Offices and 10 Circle offices present in major as well as crucial parts of the country.

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Tuesday, May 2, 2023TrainingThe training of newly recruited as well as present staff is overseen by six training colleges around India•Central Staff College, Kolkata•Regional Training Centre, Ahmedabad•Regional Training Centre, Bhubaneswar•Regional Training Centre, Bhopal•Regional Training Centre, Chandigarh•Regional Training Centre, ChennaiPresenceThe Bank's Regional presence includes 2894 branches and 2074 ATMs.The near Future will see a growth in the number of ATMs and Branches.International PresenceBesides providing inland banking services through its vast network of branches in India, UCO Bank has a vital presence in the financial markets outside India. UCO Bank presently has four overseas branches in two important international financial centers in Singapore and Hong Kong and representative office at Kuala Lumpur, Malaysia and Guangzhou, China. and is considering proposals to open further branches in major financial centers across the globe.UCOBANK has international presence for over 60 years now.The Bank’s Singapore Operations commenced from the 21st April 1951 with the opening of Singapore Main branch and subsequently Serangoon branch was opened in “Little India” on the 7th March 1959.The international linkage from Singapore is supported by a large number of Indian branches network through Integrated Treasury Branch, Mumbai. Other branches in India also provide international banking facilities through Authorized Branches of the bank.This international network is further augmented by correspondent arrangements with leading Banks at all important world centers in various countries.Non Banking SubsidiariesThe bank has requested the RBI for an approval for new Non Banking entities under its command.The new entities would ensure a complete market foothold.

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Tuesday, May 2, 2023Logo & Motto The logo of UCO bank consists of a pair of clasped hands covered with an Octagonal Structure. The logo is two hands encircling a point, or its the symbol of protecting ones trust with two hands and the fists are also enclosed within a box shaped formed by the same hand. Overall, it's the protection of trust and depict a sense of security in the customer's mind. It has been colored blue since the organization's inception, blue representing the Bank's national responsibility. The background has remained yellow since the beginning as wellThe motto UCO Bank has been - "Honors your Trust".Major Market CompetitionThe major competitors of UCO Bank have always been the dominate entities of the Indian Banking Sector, namely State Bank of India, Punjab National Bank, Bank of Baroda, HDFC Bank, ICICI Bank, Axis Bank and Dena Bank. The earlier years saw a limited presence of rivals who were mostly public sector entities. But in the recent years, the surge of private banks like the ICICI and HDFC have marked the beginning of a multi spectrum competition. The liberalization of the economy has also been an inviting aspect for the foreign banks, which will create a new war for customers and capital base.

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Union Bank of IndiaType Public company (BSE: 532477)

Industry Financial services


Key people Mr. Arun Tiwari(Chairman & MD)

Revenue 211.44 billion (US$3.5 billion) (2012)[1]



Employees 27,746 (2011)

Website www.unionbankofindia.co.in

http://en.wikipedia.org/wiki/Union_Bank_of_India

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Tuesday, May 2, 2023Union Bank of India (UBI) (BSE: 532477) is one of the largest government-owned banks of India (the government owns 60.13% of its share capital). It is listed on the Forbes 2000, and has assets of USD 13.45 billion. All the bank's branches have been networked with its 6420 ATMs. Its online Telebanking facility are available to all its Core Banking Customers - individual as well as corporate. It has representative offices in Abu Dhabi, United Arab Emirates, Beijing, Peoples Republic of China, London, Shanghai, and Sydney, and branches in Hong Kong, Dubai(Dubai International Financial Centre) and Antwerp, Belgium.The bank is in the process of upgrading its representative offices in London and Sydney to branches. UBI is active in promoting financial inclusion policy and is a member of the Alliance for Financial Inclusion (AFI).HistoryUnion Bank of India (UBI) was registered on 11 November 1919 as a limited company in Mumbai and was inaugurated by Mahatma Gandhi. At the time of India's Independence in 1947, UBI only had four branches - three in Mumbai and one in Saurashtra, all concentrated in key trade centers. After Independence UBI accelerated its growth and by the time the government nationalised it in 1969, it had grown to 240 branches in 28 states. Shortly after nationalization, UBI merged in Belgaum Bank, a private sector bank established in 1930 that had itself merged in a bank in 1964, the Shri Jadeya Shankarling Bank. Then in 1985 UBI merged in Miraj State Bank, which had been established in 1929. In 1999 the Reserve Bank of India requested that UBI acquire Sikkim Bank in a rescue after extensive irregularities had been discovered at the non-scheduled bank. Sikkim Bank had eight branches located in the North-east, which was attractive to UBI.UBI began its international expansion in 2007 with the opening of representative offices in Abu Dhabi, United Arab Emirates, and Shanghai, Peoples Republic of China. The next year, UBI established a branch in Hong Kong, its first branch outside India. In 2009, UBI opened a representative office in Sydney, Australia.At present, the offshore banking operations of Union Bank of India are led by its branches in Hong Kong and newly opened branch in Dubai at Dubai International Financial Centre.

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Tuesday, May 2, 2023United Bank of IndiaType Public

Traded as •NSE: UNITEDBNK•BSE: 533171

ISIN INE695A01019


Founded 1950Headquarters Kolkata, West Bengal, IndiaKey people Shri Deepak Narang (ED), Shri Sanjay Arya (ED)

ProductsFinance and Insurance, Consumer BankingCorporate Banking, Investment Banking, Investment Management; Private Equity, Mortgages

Revenue •Rs. 10,318.06 crore (2013)•Rs. 8,693.99 crore (2012)

Net income •Rs. 391.90 crore (2013)•Rs. 632.53 crore (2012)

Total assets •Rs. 114,615.10 crore (2013)•Rs. 102,010.39 crore (2012)

Total equity •Rs. 5,883.72 crore (2013)•Rs. 5,579.69 crore (2012)

Owner(s) Government of IndiaEmployees 15,285 (2011)Website www.unitedbankofindia.com

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Tuesday, May 2, 2023United Bank of India (UBI) is an Indian government-owned financial services company headquartered in Kolkata, West Bengal, India. Presently the bank has a three-tier organizational setup consisting of its Head office in Kolkata, 35 Regional offices and 2001 branches spread all over India. However, its major presence is in eastern India. The bank has three full fledged overseas branches, one each at Kolkata, New Delhi and Mumbai. United Bank of India now aims to expand its international activities.On 30 March 2009, the Indian government approved the restructuring of United Bank of India. The government proposed to invest 2.5 billion rupees in shares by 31 March and another 5.50 billion in the next fiscal year in Tier-I capital instruments. The move is part of the Indian government's program to improve the capital base of the state-owned banks.HistoryUBI was the result of the merger in 1950 of four Bengali banks: Comilla Banking Corporation (founded by Narendra Chandra Dutta in 1914 in what is now Bangladesh), Bengal Central Bank (founded by Sri J.C. Das in 1918), Comilla Union Bank (founded by Sri L.B. Dutta in 1922) and Hooghly Bank (founded by Sri D.N. Mukherjeee 1932). All four had suffered runs in December 1950 after the failure of the Nath Bank. The Reserve Bank of India assisted the banks in amalgamating to form United Bank of India.1961 UBI merged in Cuttack Bank (est. 6 June 1913) and Tezpur Industrial Bank (est. 6 June 1918, as the first commercial bank in Assam province).In 1965, the Government of Pakistan took over the bank's branches in Pakistan.1969 On 19 July the Government of India nationalized UBI, along with 13 other major Indian commercial banks. At the time of nationalization UBI had only 174 branches.1973 UBI acquired Hindustan Mercantile Bank (est. 1944).1976 UBI acquired Narang Bank of India, which had been established in 1943 in Narang, Gujarat.Controversy over Non-performing Assets (NPAs)In February 2014, an RBI-appointed forensic audit by Deloitte found serious lapses in the Non-performing asset detection system of the bank. It is yet to be established whether this oversight on the part of the bank was deliberate or unintentional.The bank has reported a loss of Rs. 1,238 crore during Q3 of the 2013-14 fiscal year, resulting in a downgrade of its tier-II bonds by ICRA, an associate of Moody's Investor Service.United Bank of India's reported NPA of 10.82% is the highest in percentage among listed banks in India

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Delivery Channel Based Products of BankDebit CardPrepaid CardATMInternet BankingMobile BankingTele BankingSMS Banking

Year Award and Recognition

2006 National Award for the second best performance in financing small scale units by Ministry of Small Scale Industries, Government of India

2007Golden Jubilee Award for the best bank in north east zone for excellence in the field of khadi and village industries from the Ministry of MSME, Government of India

2008National Award for the best bank for excellence in field of Khadi and village industries for east and north east zones from the Ministry of MSME, Government of India

2009National Award under Prime Minister Employment Guarantee Programme in north east zone from the Ministry of MSME, Government of India

Awards/ certifications received by the Bank

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Vijaya BankType Public BSE: 532401


Founded 1931 at Mangalore, India.

Headquarters Bangalore, India

Key people Shri.v kannan, Chairman & Managing Director

Employees 12,500 (2012-13)

Website www.vijayabank.com

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Vijaya Bank is a medium Public Sector Bank with presence across India. It is one of the nationalised banks in India.HistoryVijaya Bank, was established by Shri. Attavar Balakrishna Shetty at Bunts Hostel in Mangalore on October 23, 1931. Since it was established on Vijayadashami Day, it was named ‘Vijaya Bank. The objective was to promote banking habits, thrift and entrepreneurship among the farming community of Dakshina Kannada district in Karnataka State. The bank became a scheduled bank in 1958. Vijaya Bank steadily grew into a large All India bank, with nine smaller banks merging with it during 1963-68. The bank was nationalised on April 15, 1980.Growth & NationalizationVijaya Bank grew steadily by merging nine smaller banks into it between 1963-68. Shri. Mulki Sunder Ram Shetty, who was the then Chief Executive of the bank is largely credited[citation needed] with these mergers. The bank was nationalised on April 15, 1980.Currently, Vijaya Bank employs 12,500 people.[citation needed] The Bank has recently recruited young workforce to cope up with the changing banking scenario & to compete with the growing private sector & foreign banks functioning in the country.BranchesThe bank has built a network of 1512 branches, 48 Extension Counters and 1528 ATM's, that span all 28 states and 4 union territories in the country.All branches are functioning on the CBS(Core Banking Solution) platform, covering 100% of the Bank's business.Focus on Information TechnologyThe Bank has chosen Finacle from Infosys as its Centralized Banking Solution (CBS) with the IT Department being handled by Wipro. In line with prevailing trends, the bank has been focusing on technological upgrades to operations.It now offers services such as credit cards, merchant banking, hire purchase and leasing, and electronic remittance services.Vijaya Bank is one among the few banks in the country to take up principal membership of VISA International and MasterCard International

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Tuesday, May 2, 2023SBI AND ASSOCIATE BANKSType Public

Traded asNSE: SBIN BSE: 500112 LSE: SBID

BSE SENSEX ConstituentCNX Nifty Constituent

Industry Banking, Financial ServicesFounded 2 June 1806 , Bank of Calcutta

Headquarters Mumbai, Maharashtra, IndiaArea served Worldwide

Key people Arundhati Bhattacharya (Chairman)

Products

consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private

banking, private equity, savings, Securities, asset management, wealth management, Credit cards, General

InsuranceRevenue 200560 crore (US$33 billion) (2012)

Profit 17916 crore (US$3.0 billion) (2012)Total assets 1566261 crore (US$260 billion) (2012)Total equity 98884 crore (US$16 billion) (2012)

Owners Government of India , (Nationalization), 1 July 1955

Employees 295,696 (2012)Website www.sbi.co.in

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Tuesday, May 2, 2023State Bank of India (SBI) is a multinational banking and financial services company based in India. It is a government-owned corporation with its headquarters in Mumbai, Maharashtra. As of December 2013, it had assets of US$388 billion and 17,000 branches, including 190 foreign offices, making it the largest banking and financial services company in India by assets.State Bank of India is one of the Big Four banks of India, along with ICICI Bank, Punjab National Bank and HDFC Bank.The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding, in 1806, of the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent. Bank of Madras merged into the other two "presidency banks" in British India, Bank of Calcutta and Bank of Bombay, to form the Imperial Bank of India, which in turn became the State Bank of India. Government of India owned the Imperial Bank of India in 1955, with Reserve Bank of India (India's Central Bank) taking a 60% stake, and renamed it the State Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India.State Bank of India is a regional banking behemoth and has 20% market share in deposits and loans among Indian commercial banks.HistoryThe roots of the State Bank of India lie in the first decade of the 19th century, when the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843). All three Presidency banks were incorporated as joint stock companies and were the result of royal charters. These three banks received the exclusive right to issue paper currency till 1861 when, with the Paper Currency Act, the right was taken over by the Government of India. The Presidency banks amalgamated on 27 January 1921, and the re- organised banking entity took as its name Imperial Bank of India. The Imperial Bank of India remained a joint stock company but without Government participation.Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India, which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On 1 July 1955, the Imperial Bank of India became the State Bank of India. In 2008, the government of India acquired the Reserve Bank of India's stake in SBI so as to remove any conflict of interest because the RBI is the country's banking regulatory authority.In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, which made eight state banks associates of SBI. A process of consolidation began on 13 September 2008, when the State Bank of Saurashtra merged with SBI.

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Tuesday, May 2, 2023SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911), which SBI acquired in 1969, together with its 28 branches. The next year SBI acquired National Bank of Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired Krishnaram Baldeo Bank, which had been established in 1916 in Gwalior State, under the patronage of Maharaja Madho Rao Scindia. The bank had been the Dukan Pichadi, a small moneylender, owned by the Maharaja. The new bank's first manager was Jall N. Broacha, a Parsi. In 1985, SBI acquired the Bank of Cochin in Kerala, which had 120 branches. SBI was the acquirer as its affiliate, the State Bank of Travancore, already had an extensive network in Kerala.The State Bank of India and all its associate banks are identified by the same blue keyhole logo. The State Bank of India word mark usually has one standard typeface, but also utilizes other typefaces.On October 7, 2013, Arundhati Bhattacharya became the first woman to be appointed Chairperson of the bank.OperationsSBI provides a range of banking products through its network of branches in India and overseas, including products aimed at non-resident Indians (NRIs). SBI has 14 regional hubs and 57 Zonal Offices that are located at important cities throughout India.Domestic presenceSBI has 14,816 branches in India, as on 31 March 2013, of which 9,851 (66%) were in Rural and Semi-urban areas. In the financial year 2012-13, its revenue was INR 200,560 Crores (US$ 36.9 billion), out of which domestic operations contributed to 95.35% of revenue. Similarly, domestic operations contributed to 88.37% of total profits for the same financial year.International presenceThe Israeli branch of the State Bank of India located in Ramat Gan.As of 28 June 2013, the bank had 180 overseas offices spread over 34 countries. It has branches of the parent in Moscow, Colombo, Dhaka, Frankfurt, Hong Kong, Tehran, Johannesburg, London, Los Angeles, Male in the Maldives, Muscat, Dubai, New York, Osaka, Sydney, and Tokyo. It has offshore banking units in the Bahamas, Bahrain, and Singapore, and representative offices in Bhutan and Cape Town. It also has an ADB in Boston, USA.The Canadian subsidiary, State Bank of India (Canada) also dates to 1982. It has seven branches, four in the Toronto area and three in the Vancouver area.SBI operates several foreign subsidiaries or affiliates. In 1990, it established an offshore bank: State Bank of India (Mauritius). SBI (Mauritius) has 15 branches in major cities/towns of the country including Rodrigues.State Bank of India Branch at Jaffna, Sri LankaSBI Sri Lanka, Oldest Bank in Sri Lanka now has three branches located in Colombo, Kandy and Jaffna. The 3rd branch was opened in Jaffna, Northern Province on 09th September 2013. On 1st July 2014 SBI Sri Lanka celebrated their 150th year presence in Sri Lanka.

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Tuesday, May 2, 2023In 1982, the bank established a subsidiary, State Bank of India (California), which now has ten branches – nine branches in the state of California and one in Washington, D.C. The 10th branch was opened in Fremont, California on 28 March 2011. The other eight branches in California are located in Los Angeles, Artesia, San Jose, Canoga Park, Fresno, San Diego, Tustin and Bakersfield.In Nigeria, SBI operates as INMB Bank. This bank began in 1981 as the Indo-Nigerian Merchant Bank and received permission in 2002 to commence retail banking. It now has five branches in Nigeria.In Nepal, SBI owns 55% of Nepal SBI Bank, which has branches throughout the country. In Moscow, SBI owns 60% of Commercial Bank of India, with Canara Bank owning the rest. In Indonesia, it owns 76% of PT Bank Indo Monex.The State Bank of India already has a branch in Shanghai and plans to open one in Tianjin.In Kenya, State Bank of India owns 76% of Giro Commercial Bank, which it acquired for US$8 million in October 2005.Associate banksMain Branch of SBI in Mumbai.SBI has five associate banks; all use the State Bank of India logo, which is a blue circle, and all use the "State Bank of" name, followed by the regional headquarters' name:State Bank of Bikaner & JaipurState Bank of HyderabadState Bank of MysoreState Bank of PatialaState Bank of TravancoreEarlier SBI had seven associate banks, all of which had belonged to princely states until the government nationalised them between October 1959 and May 1960. In tune with the first Five Year Plan, which prioritized the development of rural India, the government integrated these banks into State Bank of India system to expand its rural outreach. There has been a proposal to merge all the associate banks into SBI to create a "mega bank" and streamline the group's operations.The first step towards unification occurred on 13 August 2008 when State Bank of Saurashtra merged with SBI, reducing the number of associate state banks from seven to six. Then on 19 June 2009 the SBI board approved the absorption of State Bank of Indore. SBI holds 98.3% in State Bank of Indore. (Individuals who held the shares prior to its takeover by the government hold the balance of 1.77%.)The acquisition of State Bank of Indore added 470 branches to SBI's existing network of branches. Also, following the acquisition, SBI's total assets will inch very close to the 10 trillion mark (10 billion long scale). The total assets of SBI and the State Bank of Indore stood at 9,981,190 million as of March 2009. The process of merging of State Bank of Indore was completed by April 2010, and the SBI Indore branches started functioning as SBI branches on 26 August 2010.

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Tuesday, May 2, 2023Non-banking subsidiariesApart from its five associate banks, SBI also has the following non-banking subsidiaries:SBI Capital Markets LtdSBI Funds Management Pvt LtdSBI Factors & Commercial Services Pvt LtdSBI Cards & Payments Services Pvt. Ltd. (SBICPSL)SBI DFHI LtdSBI Life Insurance Company LimitedSBI General InsuranceIn March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with 26% of the remaining capital), to form a joint venture life insurance company named SBI Life Insurance company Ltd. In 2004, SBI DFHI (Discount and Finance House of India) was founded with its headquarters in Mumbai.Other SBI service pointsAs of 31 March 2014: SBI has 43,515 ATMs and SBI group (including associate banks) has 51,491 ATMs. SBI has become the first bank to install an ATM at Drass in the Jammu & Kashmir Kargil region. This was the Bank's 27,032nd ATM on 27 July 2012.Logo and sloganThe logo of the State Bank of India is a blue circle with a small cut in the bottom that depicts perfection and the small man the common man - being the center of the bank's business. The logo came from National Institute of Design(NID), Ahmedabad and it was inspired by Kankaria Lake, Ahmedabad.[12]

Slogans: "PURE BANKING, NOTHING ELSE", "WITH YOU - ALL THE WAY", "A BANK OF THE COMMON MAN", "THE BANKER TO EVERY INDIAN", "THE NATION BANKS ON US"Listings and shareholdingAs on 31 March 2014, Government of India held around 58.60% equity shares in SBI. Life Insurance Corporation of India is the largest non-promoter shareholder in the company with 14.99% shareholding.

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Tuesday, May 2, 2023Shareholders ShareholdingPromoters: Government of

India 58.60%Banks & Insurance Companies 16.79%

FIIs/GDRs/OCBs/NRIs 12.04%Mutual Funds & UTI 03.78%

Private Corporate Bodies 02.87%Others 5.92%Total 100.0%

The equity shares of SBI are listed on the Bombay Stock Exchange,] where it is a constituent of the BSE SENSEX index,and the National Stock Exchange of India, where it is a constituent of the S&P CNX Nifty.Its Global Depository Receipts (GDRs) are listed on the London Stock ExchangeEmployeesSBI is one of the largest employers in the country having 222,033 employees as on 31 March 2014, out of which there were 45,132 female employees (20%) and 2,610 (1%) employees with disabilities. On the same date, SBI had 42,744 Schedule Caste (19%) and 17,243 Schedule Tribe (8%) employees. The percentage of Officers, Assistants and Sub-staff was 36%, 46% and 18% respectively on the same date Hiring drive: 1,776 Assistants and 1,394 Officers joined the Bank in FY 2013-14, for expansion of the branch network and to mitigate staff shortage, particularly at rural and semi-urban branches. Staff productivity: As per its Annual Report for FY 2013-14, each employee contributed net profit of INR 4.85 lakhs.Recent awards and recognitionsSBI won the Best Bank award in the 'ASiA MONEY FX POLL OF POLLS 2014’ for best overall performance as domestic provider of Forex services over the last 10 years.SBI was ranked as the top bank in India based on tier 1 capital by The Banker magazine in a 2014 ranking.SBI was ranked 298th in the Fortune Global 500 rankings of the world's biggest corporations for the year 2012.SBI won "Best Public Sector Bank" award in the D&B India's study on 'India's Top Banks 2013'.

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Tuesday, May 2, 2023State Bank of India won three IDRBT Banking Technology Excellence Awards 2013 for “Electronic Payment Systems”, “Best use of technology for Financial Inclusion”, and “Customer Management & Business Intelligence” in the large bank category.SBI won National Award for its performance in the implementation of Prime Minister’s Employment Generation Programme (PMEGP) scheme for the year 2012.Best Online Banking Award, Best Customer Initiative Award & Best Risk Management Award (Runner Up) by IBA Banking Technology Awards 2010SKOCH Award 2010 for Virtual corporation Category for its e-payment solutionSBI was the only bank featured in the "top 10 brands of India" list in an annual survey conducted by Brand Finance and The Economic Times in 2010.[

The Bank of the year 2009, India (won the second year in a row) by The Banker MagazineBest Bank – Large and Most Socially Responsible Bank by the Business Bank Awards 2009Best Bank 2009 by Business IndiaThe Most Trusted Brand 2009 by The Economic Times.SBI was named the 29th most reputed company in the world according to Forbes 2009 rankingsMost Preferred Bank & Most preferred Home loan provider by CNBCVisionaries of Financial Inclusion By FINOTechnology Bank of the Year by IBA Banking Technology AwardsSBI was 11th most trusted brand in India as per the Brand Trust Report 2010.Major competitorsSome of the major competitors for SBI in the banking sector are Axis Bank, ICICI Bank, HDFC Bank, Punjab National Bank, Bank of Baroda, Indusind Bank, Canara Bank and Bank of India. However in terms of average market share, SBI is by far the largest player in the market.


188

SL NO

HEAD OF THE BANK SL NO

HEAD OF THE BANK

1. The Chairman State Bank of India, Central Office Chairman's Secretariat, P.B.No.12, Nariman Point Mumbai-400 021.

2. The Managing DirectorState Bank of Bikaner and Jaipur, Head Office `C' Scheme, Tilak Marg, Post Box No.154 Jaipur-302 005.

3. The Managing Director State Bank of Hyderabad, Head Office, Gunfoundry Head Office, Hyderabad-500 177 Andhra Pradesh.

4. The Managing Director State Bank of Mysore, K.G. Road Post Box No.9727 Bangalore-560 009.

5. The Managing Director State Bank of Patiala, Head Office The Mall Patiala-147 001.

6. The Managing Director State Bank of TravancoreHead Office, Post Box No.34Thiruvananthapuram-695 001

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STATE BANK OF BIKANER AND JAIPUR

Type Public

Traded as •BSE: 501061•NSE: SBBJ

IndustryBankingInsuranceCapital Markets and allied industries

Founded Jaipur, 1963

HeadquartersHead Office,Tilak Marg,Jaipur 302 005 India

Key people Arundhati Bhattacharya(Chairman), Jyoti Ghosh(Managing Director)

Products Loans, Savings, Investment vehicles, etc.Net income Rs. 730.24 Crore (March 2013)Website www.sbbjbank.com

http://en.wikipedia.org/wiki/Rs.


190

STATE BANK OF HYDERABAD( స్టే�ట్బ్యా�ంక్ ఆఫ్హైదరాబ్యాద్ بینک اسٹیٹ (حیدرآباد

Type Public (BSE) & (NSE)


FoundedKing Mir Osman Ali Khan, Hyderabad State Bank Hyderabad, 8 August 1941

HeadquartersHead Office,Gunfoundry,Hyderabad India

Area served Through out India.

Key peopleArundhati Bhattacharya (Chairman), Santanu Mukherjee (Managing Director)

Products Deposits, Personal Banking Schemes, SME Banking Schemes

Revenue -Net income -Total assets 767 billionOwner(s) Government of India

Parent State Bank of India (holds max% of shares)

Website www.sbhyd.com


191

State Bank of MysoreNative name ಮೈ�ಸೂರು ಬ್ಯಾಂಕ ್Type Public sectorTraded as BSE: 532200NSE: MYSOREBANKISIN: INE651A01020Industry Banking, Insurance, Capital Markets and allied industriesPredecessor(s) The Bank of Mysore Ltd.

Founded 2 October 1913; 100 years ago as The Bank of Mysore Ltd.

Founder(s) Sir M.VishweshwaraiahHeadquarters India

Number of locations 976 Branches and 9 Extension countersHead Office: Bangalore

Area served Across India

Key people •Chairman:Arundati Bhattacharya•Managing Director:Sharad Sharma

Products Deposits, Personal Banking Schemes, C & I Banking Schemes, Agri Banking Schemes, SME Banking Schemes

ServicesLoans, Deposits, Mobile Banking, ATM Services, NRI Services, Real Time Gross Settlement (RTGS) Transactions, National Electronic Fund Transfer (NEFT), Internet Banking, Debit Card

Total equity 3988 Crores as on 31 Mar 2014[2]

Employees10,627 (as on 30 Jun 2014)

•3,588 supervisory staff•7,039 non-supervisory staff

Parent State Bank of India (holds 90.00% shares)Website statebankofmysore.co.in

http://en.wikipedia.org/wiki/State_Bank_of_Mysore


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STATE BANK OF PATIALA

Type Public

Traded as •BSE: 501061•NSE: SBP


Founded Patiala, 1917

HeadquartersHead Office,The Mall,Patiala 147 002 India

Key people SMT. ARUNDHATI BHATTACHARYA (Chairman), SHRI. S. A. RAMESH RANGAN(Managing Director)

Products Loans, Savings, Investment vehicles, etc.Net income Rs. 730.24 Crore (March 2013)Website www.sbp.co.in


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State Bank of Travancore

Type Public (BSE, NSE:SBT)

IndustryBankingCapital Markets andallied industries

Founded Trivandrum, 12 September 1945 (as Travancore Bank Ltd)

Headquarters Poojappura, Thiruvananthapuram, India

Key people Shri.Jeevandas Narayan (Managing Director)

ProductsInvestment Banking, Consumer Banking, Commercial Banking, Retail Banking, Private Banking, Asset Management, Pensions, Mortgages.

Website www.statebankoftravancore.com

194

Tuesday, May 2, 2023State Bank of SaurashtraState Bank of Saurashtra was a government-owned bank in India. It was one of the seven Associate Banks of the State Bank of India, with which it merged on 13 August 2008. At the time of the merger, the Bank had a network of 423 branches spread over 15 states and the Union Territory of Daman and Diu.Prior to 1948, the region of Saurashtra, which at present forms a part of Gujarat State, comprised many small, medium and large princely states. Bhavnagar, Rajkot and Porbandar, which were among the larger states, and two smaller states, Palitana and Vadia, had established their own Darbar (meaning Palace) Banks, the oldest of which was Bhavnagar Darbar Bank, established in 1902. These banks mainly catered to the needs of the governments of their respective princely states, and acted as depositories for local savings. After the establishment of Saurashtra state in 1948, there was a parallel amalgamation of these banks. The Bhavnagar Darbar Bank became the State Bank of Saurashtra, under the Saurashtra State Bank (Amalgamation) Ordinance, 1950, and the four Darbar Banks - Rajkot State Bank, Porbandar State Bank, Palitana Darbar Bank and Vadia State Bank - were merged with it with effect from 1 July, 1950 as its branches. At the close of 1950 the Bank had only 9 branches and deposits of Rs.7 crores.In 1960, following the formation of a separate Gujarat State, the Bank's main area of operation - Saurashtra - became a part of Gujarat. At the same time, the State Bank of India took over the State Bank of Saurashtra, along with the other major state-owned banks under the State Bank of India (Subsidiary Banks) Act, 1959. By this time, the number of branches had increased to 24, with aggregate deposits of Rs.13.39 crores, total advances of Rs.7.93 crores, and an investment portfolio of Rs.8.04 crores. The paid up capital and reserves were Rs.1.51 crores. The Bank also had 866 employees.The bank's first chairman was Jagubhai S.Parikh, and he served until 1960. He was the Deputy Chief Minister of Bhavnagar State Cabinet and was the first Finance Minister in the post-Independence Saurashtra Cabinet.

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Tuesday, May 2, 2023State Bank of IndoreState Bank of Indore (Indore Bank) was a government-owned Indian bank and the largest of State Bank of India's (SBI) six associate bank subsidiaries. In October 2009, the Government of India gave its in-principle approval to a merger between State Bank of India and State Bank of Indore. On 15 July 2010 the Cabinet cleared the merger. On 26 August 2010 State Bank of Indore officially merged into State Bank of India.At the time of the merger the bank had over 470 branches in more than 300 cities and towns. In March 2009, the business turnover of State Bank of Indore exceeded Rs. 500 billion.History1920 The Bank of Indore was incorporated under a special charter from Maharaja Tukoji Rao Holkar III, who was the ruler from 1903 to 1927 of the former princely state of Indore. Indore State awarded the Bank a monopoly for 10 years, granted it certain concessions and subscribed to the Bank's share capital. Indore Bank's main branch and headquarters was in the city of Indore, located on the Malwa Plateau, just north of the Vindhya Range.1960 The Bank of Indore became a subsidiary of State Bank of India w.e.f. 1 January 1960 under the name State Bank of Indore. Prior to the merger, SBI held a 98.05% stake in Indore Bank,1962 State Bank of Indore acquired the Bank of Dewas, which had been established in 1936 and had been the first bank in Dewas district.1965 State Bank of Indore acquired Dewas Senior Bank, which had been incorporated in 1941.1971 State Bank of Indore was up-graded to class 'A' category bank.2010 State Bank of Indore was merged into State Bank of India.

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Tuesday, May 2, 20232014: Banking in India will change—body and soul

As an offshoot, Indian firms, especially those operating in the infrastructure space and adding to the growing pile of bad loans at banks, will become more aggressive in selling assets toshrink debt. Photo: Hemant Mishra/Mint to use a cliché, there will be a tectonic shift in the Indian banking landscape in 2014. Both the body and the soul of the Rs.80 trillion banking industry will change. A set of new banks will get the regulator’s approval, some foreign banks operating in India may decide in favour of local incorporation to get near-national treatment, and new norms for early recognition of financial distress and faster resolution and recovery will help curb rising bad assets and improve the health of the banking system. As an offshoot, Indian firms, especially those operating in the infrastructure space and adding to the growing pile of bad loans at banks, will become more aggressive in selling assets to shrink debt. In 2013, close to a dozen Indian companies either sold or made their intention clear to sell assets, to pare at least Rs.3.5 trillion worth of debt, as rising interest costs and diminishing margins took their toll on growth. This trend will intensify in 2014. Reserve Bank of India (RBI) governor Raghuram Rajan, a former chief economist with the International Monetary Fund (IMF), has been talking about offering banking licences on tap. This might happen in the future, but, until now, this has been a once-in-a-decade phenomenon. Following the nationalization of 14 large banks in 1969 and six in 1980, RBI has so far given licences to only 12 banks in two phases, including the conversion of a cooperative bank into a commercial bank. In the first round, the banking regulator issued licences to 10 private sector banks in 1994, shortly after the nation embraced economic liberalization under the P.V. Narasimha Rao-led Congress government. In the second round, licences were issued to two banks—Yes Bank Ltd and Kotak Mahindra Bank Ltd—in 2004. Inthepast, RBI’s stated objective behind giving licences to new banks was to introduce competition in the sector, largely dominated by government-owned banks. This time, the prime focus is to promote so-called financial inclusion, or increasing the reach of financial services to the unbanked population. Then finance minister Pranab Mukherjee, in his February 2010 budget speech, had announced that RBI would open up the sector and issue fresh licences with the objective of spreading banking services wider in a nation where roughly 50% of the adult population does not have access to them. After issuing a discussion paper and receiving public feedback on it, RBI issued the guidelines

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Tuesday, May 2, 2023on new banking license in February 2013 and set a 1 July deadline for applications. A panel of four, headed by former RBI governor Bimal Jalan, has been scrutinizing the applications. IMF’s financial access survey of 2011 gives us a fair idea about how critical financial inclusion is in India. In every 1,000km stretch, India has 30.43 bank branches and 25.43 automated teller machines (ATMs). In contrast, China has 1,428.98 branches and 2,975.05 ATMs. Similarly, there are 10.64 bank branches and 8.9 ATMs for every 100,000 of the population in India. The comparable figures for China are 23.81 and 49.56. Finally, bank deposits in India constitute 68.43% of the nation’s gross domestic product (GDP) and credit 51.75% against China’s 433.96% and 287.89%, respectively. To expand banking services in a nation of 1.2 billion people, one needs deep-pocketed promoters, and this is why corporations have been allowed to apply for banking licenses, but not too many of them seem to be interested. The Tata group withdrew its application for a banking licence, leaving 25 applicants in the race and only three of them belong to the corporate sector—the Aditya Birla Group, the Bajaj Group and Anil Ambani’s Reliance Group. Tata is not the first business house to have a change of heart. The Mahindra and Mahindra Group, too, decided not to apply for a banking licence, saying RBI’s norms were not conducive for large and successful non-banking financial companies to turn into banks. According to the licensing norms, the new bank will have to be listed within three years, bringing down the promoters’ shareholding to 40%. Within 10 years, this holding must be further pared to 20%, and by the 12th year to 15%. This is a big deterrent as the promoters will not be able to reap the benefits of the value they create. How many licenses will be given is anybody’s guess at this point, but one thing is for sure: armed with technology, the new banks will shift the playing field from the cities to rural India and add a new dimension to the rural consumption story. At a parallel level, some old and big foreign lenders may set up wholly owned subsidiaries in India because they will get “near national” treatment by the regulator when it comes to opening branches. Foreign banks with “complex structures” and banks that do not provide “adequate disclosure” in their home jurisdiction as well as “systemically important” ones will have to convert their local units into subsidiaries. Systemically important banks are those whose assets account for at least 0.25% of the total assets of all commercial banks. At least 12 foreign banks, including Bank of America Corp., Barclays Plc, Citibank NA, Deutsche Bank AG, Hong and Shanghai Banking Corp. Ltd, DBS Bank Ltd and Standard Chartered Plc, fall into this category. Those banks that started operations in India before August 2010, however, have the option to continue their business through the branch mode, but they will be “incentivized” to follow the local incorporation route. One of the incentives is allowing foreign banks to buy private sector banks in India. If indeed that happens, banking will never be the same in India. While new banks and locally incorporated foreign banks will rewrite the rules of the game, RBI’s initiative to clean up bad loans will add strength to the banking system. The combination of bad and banking system. restructured loans is at least 10% of restructured loans is

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is at least 10% of The new norms will give incentives to banks to detect the first sign of a loan turning bad and take remedial steps and, at the same time, they will make life difficult for rogue borrowers. At the next stage, RBI will probably focus on reforming state-run banks that account for about 70% of banking assets, but lack the skill to manage them and aren’t smart enough to say no when it comes to taking exposure to some sectors. Overall, 2014 will be action-packed; banks cannot ask for a more exciting time.

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Tuesday, May 2, 2023Banking Sector Analysis Report·The global slowdown has taken its toll on Indian economy. Besides, the domestic economy too is having its own set of problems. High inflation, subdued growth, slowing investments, undesirable current account deficit levels, high fiscal deficit and battered currency have together made the growth visibility rather muted. The banking sector, being the barometer of the economy, has succumbed to these challenges. Amidst this challenging scenario, the Indian banking system is continues to deal with improvement in operational efficiency and execution of prudent risk management practices.

RBI's hawkish monetary policy stance in order to combat inflation has led to sharp increase in interest rates during FY13. The elevated costs of deposits and limited pricing power ensured margin pressures for most of the banks for major part of FY13.

Indian banking industry, valued at Rs 77 trillion (Source: IBEF), is growing at a slower pace and plagued by bad loans. In what could be termed as a challenging year, FY13 witnessed steep increase in bad loans of Indian banks and turning them skeptical to extend loans to companies. As a share of sector loan book, the bad loans have gone up from 1.3% in March 2009 to 3.4% in March 2013. Public sector banks that account for 60% of the total banking assets have been the worst hit vis-a-vis its private and foreign counterparts.

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Tuesday, May 2, 2023 Key Points

Supply Liquidity is controlled by the Liquidity is controlled by the Reserve Bank of India (RBI).

Demand India is a growing economy and demand for credit is high though it could be cyclical.

Barriers to entry Licensing requirement, investment in technology and branch network, capital and regulatory requirements.

Bargaining power of suppliers

High during periods of tight liquidity. Trade unions in public sector banks can be anti-reforms and orchestrate strikes. Depositors may invest elsewhere if interest rates fall.

Bargaining power of customers

For good creditworthy borrowers bargaining power is high due to the availability of large number of banks.

Competition High- There are public sector banks, private sector and foreign banks along with non-banking finance companies competing in similar business segments. Plus the RBI is all set to issue new banking licenses soon.

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Financial Year '13 The Central Statistical organization (CSO) reported the lowest real GDP growth at 5% during FY13. This growth stands lowest in the decade and even weaker than the recorded during the first year of global financial crisis. Banking sector, being inextricably linked to the economy, stood in a state of limbo for major part of FY13.

During FY13, the gross bank credit grew at a slower pace recording 15.1% YoY growth as against 17.3% a year ago. The numbers also stood below RBI's projections for FY13. Sluggish demand conditions, weak monetary policy transmission, poor asset quality and debilitating macro-economic conditions led to lower credit growth during FY13.

Except retail, the slowdown in credit was witnessed across sectors such as agriculture, industry and service segments. The RBI data reveals that retail trade and credit card outstanding were the only buoyant segments during FY13. Mid-sized businesses and loans for professional services were the worst hit.

Against a backdrop of GDP growth deceleration, weak IIP data and persistent inflation during FY13, banks became more risk averse to lending credit. This deceleration also reflected banks' risk aversion in face of rising NPAs and increased leverage of corporate balance sheets. The deceleration was observed across all bank groups, being high for PSUs and private sector banks, which jointly account for above 90% of the total bank credit.

The RBI had administered a 1% repo rate cut and injected liquidity through CRR and SLR cuts as also through open market operations during FY13. However, banks have only cut their base rate by meager 0.25%-0.30% owing to the liquidity constraints and weak deposit growth.

The aggregate deposits grew marginally to 14.2% at the end of March 2013 as against 13.8% in FY12. The growth differential between deposit and credit continued to hover between 2-3% with deposit growth outpacing the credit growth. The credit-deposit ratio was recorded at 78.1% during the same period. This ensured tight liquidity conditions during the whole of the FY13. ·

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Tuesday, May 2, 2023CASA, the cheap source of funds for banks, also remained sluggish for the major part of FY13. The elevated interest rates during FY13 led to migration of money from CASA deposits to fixed deposits. Slower loan growth and weak CASA accretion resulted in margin (NIM) pressures for the banking industry. Furthermore, lower NIMs combined with higher credit costs that were earmarked for the bad and restructured loans dampened the earnings performance of Indian banks during FY13. The sharp industrial slowdown during FY12 and FY13 took a toll on the asset quality of the banks. Gross NPAs of 40 listed banks went up by 43.1% from levels a year ago. The restructured book also spiked up dramatically with recast assets under CDR standing around 50% more than the previous year. The repercussions were largely felt by public sector banks as they were the ones to support the productive sectors of the economy. Private sector banks, on the other hand, were better placed than its PSU peers during FY13. Better asset quality, higher margins and strong loan growth boosted the performance of private banks during the same period.

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Tuesday, May 2, 2023 Prospects Going forward in FY14, the Economic Advisory Council of Prime minister expects the economic growth to rise to 6.4% from the current 5% on the back of the recent structural measures and normal monsoons.

Growth is still a concern for the banking sector on account of a sustained slowdown in the economy as well as reduced demand for credit on account of the current high interest rate environment. Sectors such as iron & steel, textiles, power generation, automobiles and ancillaries, telecommunication, aviation, construction, real estate, infrastructure, steel and cement are expected to throw-up challenges in terms of asset quality pressures for the forthcoming periods.

The domestic economic slowdown will continue to play spoilsport resulting in increase in non-performing loans and restructured loans especially for PSU banks. Given the greater stress expected to confront PSU lenders going forward, the margins and earnings performance are expected to take a hit. Given the core earnings standing extremely low for PSU banks, their balance sheets will be victim of higher credit costs, higher liabilities on account of wage revisions and wider MTM losses due to rising yields.

As per regulatory requirements Indian banks need to shore up their capital base to adhere to the incumbent BASEL III norms. With PSU banks falling short of the target, a consistent annual equity infusion of Rs 160-180 bn is expected to flow from government over the next 5 years. As per the FY13 budget, the government of India had allocated Rs 127 bn for capitalization of PSU banks and plans to invest Rs 140 bn in FY14.

Going by the dynamic nature of the real economy, it is imperative that the banking system will require being flexible and competitive. Notwithstanding the expanding branch network of Indian banks, the banking penetration still stands low in comparison to the global benchmark. Hence, the pressing need for financial inclusion and the issuances of new banking licenses to the private sector will continue to take precedence even in FY14. The RBI is in the process of issuing new bank licenses to those private players that would stand consistent with the highest standards of transparency and diligence. Moreover, necessary reforms, regulations for free entry and making the licensing process more frequent also forms the agenda of the RBI for the coming periods.

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PHOTO GALLERY

Major photos of banks


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RESERVE BANK OF INDIAThe head of all banks

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RBI GOVERNORThe reserve bank governor


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INDIAN MONEY

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ALLAHABAD BANKBank logo

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ANDHRA BANK

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BANK OF BARODA

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BANK OF INDIA

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BANK OF MAHARASHTRA

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BHARATHIYA MAHILA BANK

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CANARA BANK

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CENTRAL BANK OF INDIA

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CORPERATION BANK

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DENA BANK

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IDBI BANK

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INDIAN BANK

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INDIAN OVERSEAS BANK

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ORIENTAL BANK OF COMMERCE

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PUNJAB NATIONAL BANK

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PUNJAB SIND BANK

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SYNDICATE BANK

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UCO BANK

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UNION BANK OF INDIA

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UNITED BANK OF INDIA

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VIJAYA BANK

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SBI AND ASSOCIATE BANKS

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(NEW)


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SBI AND ITS ASSOCIATE BANKS


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