Introduction to banking industry
Government Policies affecting Banking
Products and Services
Types of Products and Services
Promotion and pricing of products and services
Customers’ perception, motivation and learning
Strength of competitors
Weakness of competitors
Net Interest Income
INTRODUCTION TO BANKING INDUSTRY
Banking system of a nation is the shadow of nation’s economy. A healthy and profitable banking system is just like the backbone of nation’s economy. It is necessary for a nation to achieve growth and remain stable in this global world and global economy. The Indian banking system, with one of the largest banking networks in the world, has witnessed a series of reforms over the past few years like the deregulation of interest rates, dilution of the government stake in public sector banks (PSBs) and the increased participation of private sector banks. History of Banking System
Banking in the modern sense of the word can be traced to medieval and early Renaissance Italy, to the rich cities in the north like Florence, Venice and Genoa. Origin of the word
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 tablecloths. One of the oldest items found showing money-changing activity is a silver Greek drachm coins. Banking in India
From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: •Early phase from 1786 to 1969 of Indian Banks
•Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms. •Modern phase of Indian Banking System with the advent of Indian Financial & Banking Sector Reforms after 1991.
Phase IPhase IIPhase III
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks, mostly Europeans shareholders. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. There were approximately 1100 banks, mostly small. The government of India came up with Banking Regulation Act, 1949 to regulate the banks. Reserve bank of India was establishes as a regulator of banking institution in 1935. PHASE II
After independence following are the steps taken by the Government of India to Regulate Banking Institutions in the Country: •1949: Enactment of Banking Regulation Act.
•1955: Nationalization of State Bank of India.
•1959: Nationalization of SBI subsidiaries.
•1961: Insurance cover extended to deposits.
•1969: Nationalization of 14 major banks.
•1971: Creation of credit guarantee corporation.
•1975: Creation of regional rural banks.
•1980: Nationalization of seven banks with deposits over 200 Crore. PHASE III
This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimhama, a committee was set up by his name which worked for the liberalization of banking practices. The country is flooded with foreign banks and their ATM stations. Efforts are being put to...