Research paper – Poonam Dhunna (Research Scholar) commerce Singhania University, Rajasthan
Dr. Seema Dhawan (Research Supervisor)
COMPARATIVE ANALYSIS OF INDIAN BANKS' PERFORMANCE
Abstract: General problems of carrying out the comparative analysis of the banks functioning and development are considered. The essence of a micro-situation for carrying out the comparative analysis of the banks functioning and development is revealed. Various types of micro-situations are generalized when carrying out the banks functioning comparative analysis. The approach to comparison of the banks functioning and development based on Wilcoxon criterion is offered. Key words: bank, analysis, micro-situation, statistical conclusion, Wilcoxon criterion. India has a well developed banking system. Most of the banks in India were founded by Indian entrepreneurs and visionaries in the pre-independence era to provide financial assistance to traders, agriculturists and budding Indian industrialists. The origin of banking in India can be traced back to the last decades of the 18th century. The General Bank of India and the Bank of Hindustan, which started in 1786 were the first banks in India. Both the banks are now defunct. The oldest bank in existence in India at the moment is the State Bank of India. The State Bank of India came into existence in 1806. At that time it was known as the Bank of Calcutta. SBI is presently the largest commercial bank in the country.
The role of central banking in India is looked by the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India. Reserve Bank was nationalized in 1947 and was given broader powers. In 1969, 14 largest commercial banks were nationalized followed by six next largest in 1980. But with adoption of economic liberalization in 1991, private banking was again allowed.
The commercial banking structure in India consists of: Scheduled Commercial Banks and Unscheduled Banks. Scheduled commercial Banks constitute those banks, which have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI includes only those banks in this schedule, which satisfy the criteria laid down vide section 42 (6) (a) of the Act.
Indian banks can be broadly classified into public sector banks (those banks in which the Government of India holds a stake), private banks (government do not have a stake in these banks; they may be publicly listed and traded on stock exchanges) and foreign banks.
Bank Fixed Deposits
Bank Fixed Deposits are also known as Term Deposits. In a Fixed Deposit Account, a certain sum of money is deposited in the bank for a specified time period with a fixed rate of interest. The rate of interest for Bank Fixed Deposits depends on the maturity period. It is higher in case of longer maturity period. There is great flexibility in maturity period and it ranges from 15days to 5 years. Current Account
Current Account is primarily meant for businessmen, firms, companies, public enterprises etc. that have numerous daily banking transactions. Current Accounts are cheque operated accounts meant neither for the purpose of earning interest nor for the purpose of savings but only for convenience of business hence they are non-interest bearing accounts Demat Account
Demat refers to a dematerialised account. Demat account is just like a bank account where actual money is replaced by shares. Just as a bank account is required if we want to save money or make cheque payments, we need to open a demat account in order to buy or sell shares. Recurring Bank Deposits
Under a Recurring Deposit account (RD account), a specific amount is invested in bank on monthly basis for a fixed rate of return. The deposit has a fixed tenure, at the end of which the principal sum as well as the interest earned during that period is returned to the investor.
Reserve Bank of India
The Reserve Bank of India was established on...
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Barrett, Gene R. (1990, April). "What Bankers Want to Know Before Granting a Small?
Business Loan," Journal of Accountancy: 47-53
Watshem T.G., Parramaw K. Quantitative methods in finances pg. 527
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