Retail Banking

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  • Topic: Bank, Banks of India, Banking
  • Pages : 82 (23625 words )
  • Download(s) : 241
  • Published : February 2, 2011
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Section A

Research Methodology

Research methodology
1. To study the Indian retail banking industry.

2. To study the major players in the retail banking industry.

3. To find out political, economic, socio cultural and technological factors affecting this industry.

4. To know the present scenario of retail banking globally as well as in India.

5. To find out challenges ahead of the Indian Retail Banking.

Information Sources:

1. Internet

2. Books

3. Magazine

4. News paper

5. Research Paper

Research design, Data collection and sources:

As the information gathered in the project is mainly based on the Secondary data there is no research design, no primary data collection in the project. While secondary data is mainly collected through internet from web site, business magazine, books and news paper etc.


1. The research has to solely depend on secondary data so, the level of reliability will be considered as limitation of the study.

2. In the whole research and analysis, it may possible that major player of the retail banking are highlighted leaving aside this small banks.

3. Time constraint.

Section B

Introduction to Retail Banking

Chapter- 1
Introduction of Indian Banking
1. Brief history of Indian banking industry

The word Bank is said to be derived from French word “Banqcus” or “Banque”. It is believed that the early bankers, the Jews of Lombardy, transacted their business on benches in the market place. Others believe it is derived from German word “Back” meaning a joint stock fund.

The modern banking system began with the opening of Banking of England in 1694. Bank of Hindustan was the first bank to be established in India in 1770. The earliest institutions that undertook banking business under the British regime were agency house which carried on banking business in addition to their trading activities. Most of these agency houses were closed down during 1929-32. Three presidency banks known as Bank of Bengal, Bank of Bombay and Bank of Madras were open in 1809, 1840 and 1843 respectively at Calcutta, Bombay and Madras. There were later merged into the Imperial Bank of India in 1919 following a banking crisis.

The first bank of limited liability managed by Indians was the Oudh Commercial Bank started in 1881. Earlier between 1865 and 1870, only one bank, the Allahabad Bank Ltd, was established. Subsequently, the Punjab National Bank began in 1894 with its office at Anarkali Market in Lahore( now in Pakistan). The swadeshi movement ,which began in 1906, promoted formation of a number of commercial banks such as the Peoples Bank of India Ltd., the Central Bank of India, the Indian Bank ltd. and the Bank of Baroda Ltd. A series of banking crises between 1913-1917 witnessed the failure of 588 banks. The banking companies(inspection Ordinance) came in January, 1946 and the banking companies (Restriction of Branches) Act was passed in February,1946. The Banking companies Act was passed February 1946, which was later amended to be known as the Banking Regulation Act, 1949.

Meanwhile. The RBI Act 1934 was passed and the Reserve Bank of India became the first central bank of the country i.e. 01-04-1935, it took over the central banking activities from the Imperial Bank of India. The RBI was nationalized on 1-1-1949. The Imperial Bank of India was partially nationalized to form the State Bank of India in 1955. In 1959, subsidiaries of the RBI namely, State Bank of Saurashtra and State bank of Travancore were established.

On July 19th, 1969, the Government of India took over ownership and control of 14 major banks in the country with deposits exceeding Rs. 50 Crore each. Again on 15th April,1980, six more banks with total time and demand liabilities exceeding Rs.200 cores were nationalized. In 1993, one of the nationalized banks namely, New Banks of India was merged with another nationalized...
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