Project Report on Banking and Insurance

The banking industry consists of almost sixty-five hundred banks that are insured by the Federal Deposit Insurance Corporation (FDIC). Out of these, there are eighty-one substantially large banks in the United States that are publically traded, which is where the market structure and industry information will be based. However, as with the rest of the country, these banks are very concentrated, with the largest banks accounting for over half of the market as well as accounting for the largest amounts of revenue.

GDP is the market value of all final goods and services produced within a country in a given period of time. GDP is basically the measure of a nation's total income and is an important tool in explaining a single society's economic well-being (Mankiw, 2009).

GDP is short for Gross Domestic Product and the dictionary defines it as “Gross Domestic Product (GDP) is the broadest quantitative measure of a nation's total economic activity. More specifically, GDP represents the monetary

In this system, banks financed their loans mostly using their capital stock, the largest portion of their

-GDP stands for gross domestic product, and it is the value of all goods and services produced inside the country. It is calculated by adding government spending, household consumption, investments and savings, exports, and subtracting imports.

Table 4 summarises descriptive statistics of RATE, the un-weighted (weighted) risk disclosure index (RDI) as well as SSB for all bank fiscal years, as well as for each of the eight firm years investigated, separately from 2006 to 2013. Table 4 shows a number of remarkable outcomes. First, it reports that there is a high amount of variation in ratings between banks. For instance, RATE ranges from a minimum of 1 (Default) to a maximum of 19 (AA- which mean very high credit quality) with the median RATE 14.12 (Good credit quality) that indicate most banks in MENA have good rating, but there has been a continuous decreases in ratings during 2008 and years after which reflects the impact of continues crises beginning with GFC in 2007 and credit crunch in 2010. For instance, the average banks ratings is 14.4, 14.29, 14.09, 13.77, 13.69 and 13.84 in 2008, 2009, 2010, 2011 and 2012, but RATE begin to increases in 2013 which indicates recovery in MENA banks from GFC crisis effects. Finally, there is evidence that the level of listed bank RATE before GFC is higher than during and after GFC.

Banks are the most significant players in the Indian financial market. They are the biggest purveyors of credit, and they also attract most of the savings from the population. Dominated by public sector, the banking industry has so far acted as an efficient partner in the growth and the development of the country. Driven by the socialist ideologies and the welfare state concept, public sector banks have long been the supporters of agriculture and other priority sectors. They act as crucial channels of the government in its efforts to ensure equitable economic development.

bank bjb has chanelled loans to 454,191 borrowers in the its operational areas. Comprising of consumer loan debtors 77.16%, comercial loans debtors 1.44%, mortgage loan debtors 3.78%, and micro credit debtors 17.61%.

India’s banking industry is largely fragmented with more than half of the commercial banks being state-run entities. It has seen one of the biggest mergers of all time in the recent past with Kotak Mahindra taking over ING Vysya. While the Indian banking sector is still facing tough times, Kotak Mahindra’s merger with ING Vysya will help the former to expand their presence across India.

24. Laud, G.M. (1983), Seven Decades of Innovative Banking, The Maharashtra State Co-operative Bank Ltd., Mumbai, p-168

Due to the characteristics of banking industry, there is a high flexibility for management in these two liabilities. It is noticeable that deposits and borrowing accounted for about 97% of total liabilities on the balance sheet. Occupying 69% of total deposits, managers pay more attention to Retail Banking Services because of itsattractiveness to customers compared to other types of deposits.

During the decade of the most innovative financial services PSBs are activated , resulting in its infancy . The World Bank also believes that the Indian banking system is still a large number of inefficient state-controlled system , rather than compete with each other . Some issues are framed questionnaire to gauge the views of executives PSBs to improve financial services related to the main subsidiary bodies. The main issues to improve the results of the subsidiary bodies of the principal subsidiaries of the 150 officials, agency personnel management related financial services has been discussed below.

To augment the profits of the bank has stated non-farm advance since 1999. There is a gradual increase in Non-farm advance. The maximum individual loan limit is Rs.20.00 lakh and Rs.12.00 lakh in urban and rural areas respectively. Our investment in Government Securities as on 31-3-2009 is Rs.11110.54 crore.

Non-Banking Financial Companies (NBFC) have rapidly emerged as an important segment of the Indian financial system. Moreover, NBFCs assume significance in the small business segment as they primarily cater to the credit requirements of the unorganised sector such as wholesale & retail traders, small-scale industries and small borrowers at the local level. NBFC is a heterogeneous group of financial institutions, performing a wide range of activities like hire-purchase finance, vehicle financing, equipment lease finance, personal loans, working capital loans, consumer loans, housing loans, loans against shares and investment, etc. NBFCs are broadly divided into three categories namely (i) NBFCs accepting deposits from banks (NBFC-D); (ii)

Capital gathering which in turn is essential to economic growth and development the stages of accumulation are savings and investment among them saving is most crucial because it is basic constraint for investment and development so capital accumulation and economic growth is affected by the rate of savings in the economy mobilization of savings becomes all the more important in the economy when economic growth is set with in frame work of targets with maximum reliance on internal resources. In a study conducted by national institute of bank management (NIBM) it was observed that the savings and that about 75 per cent of the gross domestic savings (GDS) cane from the house hold sector and approximately 45 percent of the household sector savings were kept in the form of bank deposits. The banking sector has played an increasingly imperative role in the financial intermediation process by mobilizing savings in the form of deposits. Deposits are the main source of funds for banks the bank of the total liabilities of a banking company include deposits. Hence banks serve financial needs of various sections of societies, the larger volume of funds can attract, the better the position they are in to lend funds. Scheduled Commercial Banks are those banks which were included in the second schedule or 2E of RBI ACT, 1934.