Background and inception of the company
Nature of the business carried
Vision mission and quality policy
Area of operation – Regional
Work flow model
Future growth and prospect
MCKENSY’S 7S FRAME WORK WITH SPECIAL REFERENCE TO ORGANISATION UNDER STUDY
ANALYSIS OF FINANCIAL STATEMENT
Chapter – 1
Money lending in India is an age old profession with a history of about200 years. In the late 18th century, Tippu Sulthan, was accredited to haveconceived the idea of organising banking as a part of state machinery for extending credit facilities to the needy at an affordable rates.
At the end of late-18th century, there were hardly any bank in India in the modern sense of the term. At the time of the American Civil War, a void was created as the supply of cotton to Lancashire stopped from the American’s. Some banks were opened at that time which functioned as entities to finance industry, including speculative trades in cotton. With large exposure to speculative ventures, most of the banks opened in India during that period could not survive and failed.
The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. The first bank which was established in India was General Bank of India which came into existence in 1786 which was followed by the Bank of Hindustan. Both these banks are now defunct. The oldest bank in existence in India is the State Bank of India being established as "The Bank of Bengal" in Calcutta in June 1806. A couple of decades later, foreign banks like Credit Lyonnais started their Calcutta operations in the 1850s. At that point of time, Calcutta was the most active trading port, mainly due to the trade of the British Empire, and due to which banking activity took roots there and prospered. The first fully Indian owned bank was the Allahabad Bank, which was established in 1865. By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, and Bank of India, in 1906, both of which were founded under private ownership. The Reserve Bank of India formally took over the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and was given broader powers. .
The Indian banking system emerged relatively unscathed from the global economic downturn of 2008‐09. While credit growth slowed down, banks were able to control the level of non‐performing assets (NPAs), thanks partly to the Reserve Bank of Indian allowing one‐time restructuring of accounts. NPAs as a proportion of gross advances increased slightly from 2.3 per cent as on March 31, 2009 and 2.5 per cent as the end of March 31, 2010. The government has been supporting the growth of public sector banks by infusing capital as per requirement. The government is expected to continue to maintain its strong support for the banking system, while simultaneously imposing stringent Prudential norms to ensure its orderly growth. Aggregate y‐o‐y bank credit growth was 22 per cent as of the first week of November 2010, primarily supported by large borrowings for 3G spectrum and broadband wireless access auctions. Despite hike in deposit rates by 50 bps (on an average) in the first half of 2010‐11, the deposit growth rate has been 14‐15 per cent till 5th November, 2010. This is primarily because of investors preferring to channelize their savings to other avenues on account of negative real interest rates on bank deposits. For inflows to...
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