Challenges Faced By The Indian Banking Sector Essay

I initiate the coverage of Bank of Baroda. with a BUY rating as the bank has the price to book value ratio of 0 .82 as of March 2014 (0.99 as of April 10, 2015), which clearly proves that the bank is undervalued and it has the potential to gain in its price in future. Also , the industry-wide P/BV stood at 1.54 at the end of financial year 214, which further strengthens the point that an investor should go long in this particular stock.

Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India 's independence, became the State Bank of India.

The Awards were presented by the Asian Bankers Association (ABA) and Bank Marketing Association of the Philippines (BMAP) in the Asia Pacific Bankers Congress (APBC) 2004 on March 26, 2004 in Manila, Philippines.

Customer relation service help customers affect their satisfaction and their choice banks to thrive, both product and service delivery for adequately aligned with customer expectations, achieving customer satisfaction and loyalty is essential for long-term survival of the industry Wood, S. (1999) this essay will focus on the three aspect of customer relation contribution to the society. It will narrate the banking industry system, professional skill and personal skill. The industry target the role of innovation base objective of performance play by the industry regulatory. Agarwal, S., Krishna, M.E. and Chekitan, D.D. (2003) this help to gather the information for the innovation occurred within to mediate the relationship

Understanding consumer behaviour has taken the attention of researchers and companies due to their relevance for business success (Jones et al 2000). How is consumer satisfaction related with their loyalty has been likely the most important issue in consumer behaviour for ensure a long-term success in a marketing strategy (Pappu et al 2006). The literature and researchers suggest that there is a strong relation between product satisfaction and brand loyalty, but always highlighting their relation as a unidirectional relationship. In other words, product or service satisfaction has a direct relationship with loyalty, but loyalty has not a significant dependency with satisfaction (Oslen 2005). In other words, brands can have satisfied

The system of banking in India is very extensive. The value of Indian banking sector is US$270 billion. And the deposit of the Indian banking sector is US$220 billion. Now the Indian banking sector has changed. Nowadays using of things like internet banking and core banking have made the daily operations of bank more easy to use. Mumbai is also known as the trade and commerce capital of India. These are the few basic things which are related to the Indian economy like Indian rupee is equal to 100 pause, the fiscal year is from 1 April-31 March, the trade organisations are WTO,SAFTA,BRICS,G2O and others. The current GDP growth is 5.8%.If we see the GDP in sectorial wise then in agriculture the GDP is 13.7%, in the industry sector the GDP is 21.5% and in the service sector it is64.8%The unemployment percentage in the urban areas is 3% and in the rural areas it is 2%.and in the numbers I id 10.8 million. The main industries in India are agriculture, petroleum products, chemicals, pharmaceuticals, software,

to strengthen the regulatory and accounting frameworks aimed at increasing the resilience of the institutions. However, higher capital standards, stricter liquidity and leverage ratios and a more cautious approach to risk are likely to raise the funding costs of banks. Compliance with Basel III stipulations along with the credit needs of a growing economy will require banks to tap various avenues to raise capital. Broad estimates suggest that for public sector banks, the incremental equity requirement due to implementation of Basel III norms by March 2018 is expected to be approximately `750-800 billion. Meeting these capital requirements will entail the use of innovative and attractive market based funding channels by the banks. The

In India, Merchant Banking activities followed the footsteps of similar activities in UK and USA starting from the year of 1967. Currently Merchant Banking activity have blossomed in the Indian market. Merchant banks have both public and private sector that set up their respective merchant banking divisions. Currently in india the total numbers of merchant bankers are approximately one thousand four hundred and fifty with more than nine hundred and thirty registered with SEBI. The SEBI authorized Merchant Bankers that include merchant banking divisions in all of India. Both nationalized and foreign banks financial institutions subsidies in commercial banks. While private merchant banks engaged in stock broking, underwriting activities and financial consultancy and investment service firms.

Sparing cash in India in the present day sense began in the latest numerous years of the eighteenth century. The among the first banks were Bank of Hindustan, which implicit 1770 and traded in 1829-32; and General Bank of India, secured 1786 yet failed in 1791. The greatest bank, and the most settled still in vicinity, is the State Bank of India. It started as the Bank of Calcutta in June 1806. In 1809, it was renamed as the Bank of Bengal. This was one of the three banks backed by an organization government, the other two were the Bank of Bombay and the Bank of Madras. The three banks were merged in 1921 to structure the Imperial Bank of India, which upon India 's opportunity, transformed into the State Bank of India in 1955. For quite a while the organization banks had gone about as semi national banks, as did their successors, until the Reserve Bank of India was made in 1935, under the Reserve Bank of India Act, 1934. In 1960, the State Banks of India was given control of eight state-related banks under the State Bank of India (Subsidiary Banks) Act, 1959. These are presently called its accomplice banks.

ICICI Bank was built by the Industrial Credit and Investment Corporation of India (ICICI), an Indian budgetary foundation, as a completely possessed backup in 1994. The guardian organization was shaped in 1955 as a joint-wander of the World Bank, India 's open segment banks and open division insurance agencies to give task financing to Indian industry.[17][18] The bank was at first known as the Industrial Credit and Investment Corporation of India Bank, before it transformed its name to the shortened ICICI Bank. The guardian organization was later united with the bank.

Indian Financial Sector is a well diversified arena experiencing high growth and development. The financial sector of India is comprised of commercial banks, insurance companies, non-banking cooperations, pension and mutual fund houses and lot more other financial institutions serving the Indian Economy. However, the financial sector is a major ly dominated by the Bankin Sector where the commercial banks comprise of 60 percent of total assets held by the financial system followed by Insurance Sector. Apart from the Banks and Insurance Companies, financial sector also comprise of Non-Banking Finance Companies also known as NBFC which in operate in specialized segments of micro finance,

The statistical material for the study and analysis of the property of corporate share by financial institutions inside a framework of national accounts is much lesser and less solid than that accessible data collected during the post-war time period.

The economy can be divided in the entire spectrum of economic activity into the real and monetary sectors. The real sector is where production takes place while the monetary sector supports this production and in a way is the means to the end. We know and we accept the financial system is critical to the working of the rest of the economy. In fact, the Asian crisis of the nineties, or for that matter what happened in Latin America and Russia subsequently and also Dubai Crisis have shown how a fragile financial sector can wreak havoc on the rest of the economy. Therefore the banking sector is crucial and we want to express our views to explore how this sector can work in harmony with the real sector to achieve the

A bank is an institution that deals in money and its substitutes and provides other financial services. Banks accept deposits and make loans or make an investment to derive a profit from the difference in the interest rates paid and charged, respectively.

The above study conducted for a period of 12 weeks has led to the following inferences: