Banking Structure in India

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Demand, Supply, and Analysis of Market Structure of the Indian banking Industry

Submitted By: Analyze the demand & supply of ICICI bank and understand the market structure of banking industry. Rishabh Nagori – 12P163 Rohan Khandelwal – 12P164 Saket Saurabh – 12P165 Saurabh Arora – 12P166 Saurabh Saxena – 12P167 Saurav Kumar Singh – 12P168

Demand, Supply, and Analysis of Market Structure of the Indian banking Industry Contents
Overview of banking .................................................................................................................. 2 Structure of Banking Sector in India .......................................................................................... 2 Functions of a bank ................................................................................................................ 3 Current rates............................................................................................................................. 4 Effect of 2008 Crisis ................................................................................................................ 4 Scenario post 2008 ................................................................................................................. 5 Long term prospects .................................................................................................................. 6 Major players in Indian banking industry ....................................................................................... 7 Role of the RBI in the banking sector ............................................................................................ 9 Demand/Supply........................................................................................................................11 Market Structure ......................................................................................................................13 Price .......................................................................................................................................16 Conclusion ...............................................................................................................................17 References...............................................................................................................................18

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Demand, Supply, and Analysis of Market Structure of the Indian banking Industry Overview of banking
Banking includes core banking, retail, private, corporate, investment etc. Financial services include stock-broking, payment gateways, mutual funds etc. Insurance include both life and non-life. In the most basic form, Banking is taking deposits from savers, paying interest on these savings and passing these funds on to borrowers, receiving interest on the loans. The Bank’s profits are derived from the difference between the rate they pay for funds and the rate they receive from borrowers. This ability to pool deposits from many sources that can be lent to many different borrowers creates the flow of funds inherent in the banking system. By managing this flow of funds, banks generate profits, acting as the intermediary of interest paid and interest received and taking on the risks of offering credit. Banking is a business characterized by a highly regulated environment with the RBI (Reserve bank of India) deciding on majority of the issues. It is arguably the most regulated sector. It is not just an industry but a mechanism of policy transmission. RBI has defined various rates to regulate the banking operations. The banking industry in India has been passing through a phase of customers market. The customers now have more choices of bank which has established competition amongst the banks in India. Services provided by banks have become more easy and convenient. Banks are among the main participants of the financial system in India.

Structure of Banking Sector in India
Central Bank (Reserve Bank of...
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