Introduction of Banking Sector

During the twenty years it was in place the First Bank did change the economic downturn of the country after the war. The First Bank had branches in eight influential port cities and had a wide geographic existence. It influenced the lending policies of the state banks’ lending practices. The First Bank was like the state banks in that it made business loans, accepted deposits, and issued notes that circulated as currency and were convertible into gold or silver. But it differed from the state banks because its

Indian Banking System: For the past three decades India's banking system has several outstanding achievements to its credit. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below:

Despite the success however, the bank drew the hostility of state banks as well as entrepreneurs, who determined that the bank’s budgetary heedfulness was constraining economic expansion. There are reported others who were alarmed with the actuality that precisely two-thirds of the bank stock was held by British interest, which they fought so hard for freedom during the American Revolution. When it was time for the renewal of the bank’s charter in 1811, the “forces that be” joined forces and succeeded in preventing the renewal. This is where the First Bank of the United States went out of operation.

The innovation in banking is applied with a sensitivity to all concerned ~ the bankers using the modern banking instruments, customers enjoying seamless modernized service and stakeholders receiving improved earnings due to the tech savvy banking. In the lights of automation in banking, it is felt that a whole new world of convenience has opened up for customers and the banks themselves have become more efficient in service provision.

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 banking industry has experienced the rapid development during last decade. The development of banking industry can be seen from the large number of bank mergers and the increasing of average size of banks and the area over which they operate. However, the banking is passing through a period of substantial structural change under the combined and inter-related pressures of eight key areas in banking industry:

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,

A strong banking sector is very important for developing economy. One of the most important functions of banking is lending money. It is generally encouraged because it has the effect of funds being transferred to productive use, it helps in growing economy. As there are pros and cons of everything, the same is in lending money that carries credit risk, which arises from the failure of borrower to fulfill its contractual obligation. The failure of the banking sector has an adverse impact on other sectors. Non-performing loans are the major problem in banks. NPLs reflect the performances of banks. The issue of non-performing assets has been discussed at length for financial system all over the world. The problem of

Funded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853. Chartered opened its first branches in Mumbai (Bombay), Calcutta and Shanghai in 1858, followed by Hong Kong and Singapore in 1859.

The Surface of Mahila Urban Co-Operative Banks (UCBs) In Indian context; Its Tribulations and Prediction:

the other hand, is either a merchant, or a trader, or a member of the

The objective of “ONE BANK” is not only to earn profit but also to make people as savy person. For that purpose they introduced various types of schemes as though a man from lower class to top class enjoy these schemes. By this process they not only collect the idle money but also invest in the best place that plays a vital role in improving the over all economic condition of the country. It is a bank for the people including businesspersons and professionals.

Forces for change in Indian Banking: Underlying forces for change Developments in communication systems, coupled with blurring of differences between banks and non - banks and globalization have aggravated the competitive environment. Technology became a key differentiator for the new private sector banks. The technological superiority helped these private sector banks to have upper edge over public sector banks. The traditional source of income (Net Interest margin = Interest Earned – Interest Expended) was compressed due to the pressure of competition. As a

Banking in India has its origin as early as the Vedic period. It is believed that the transition from money lending to banking must have occurred even before Manu, the great Hindu Jurist, who has devoted a section of his work to deposits

Reserve Bank of India was nationalised in the year 1949. The general superintendence and direction of the Bank is entrusted to Central Board of Directors of 20 members, the Governor and four Deputy Governors, one Government official from the Ministry of Finance, ten nominated Directors by the Government to give representation to