Evolution Of The Indian Banking Industry Essay

1849 WordsApr 4, 20168 Pages
EVOLUTION OF BANKING IN INDIA: Indian banking industry is the lifeline of the nation and its people. Banking sector is help to developing the various sectors of the economy. Thus, economic development of a country is depends on the success of banking industry and this success is determined to a large extent by understanding the needs and satisfaction of its customers. Today, Indian banks can confidently compete with modern banks of the world. HISTORY: The Indian banking industry has its establishment in the 18th century and has had different evolutionary experience since then. The modern banking system in India with the establishment of general bank of India in 1786.From the drive of the Indian banking industry can be classified into three distinct phases. PHASE 1 – Early phase of Indian banks from 1786 to 1969. PHASE 2 –Nationalization of Indian banks and up to 1991. PHASE 3 –Indian financial & banking sector reforms & partial liberalization after 1991. PHASE 1: The general bank of India was establish in the year 1786.In the mid 19th century the east India Company established the Bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Madras in 1843.These were initially independent units and were referred to as the presidency banks. These three banks were amalgamated as the Imperial Bank of India in 1920.In 1865 Allahabad Bank was established, was established first time by exclusively Indians, Punjab National Bank ltd was started in 1894 with
Open Document