Recent Trends Of Indian Banking Essay

The bank is efficiently managed. The bank is one of the few banks in India which gives importance to technology in order to serve its customers better through financial

The change and advancement in technology are a significant factor in the banking business. Technology has led to tremendous improvements in this industry. Since the commencement of this millennium, people have shown great love for their mobile phones (Ozaki 1992). It necessitated the invention of mobile applications (APPs). From the introduction of the mobile banking, APP people rarely go to the banks. All their transactions get done simply by the stroke of a finger. Businesses face a challenge of adapting to changes in the technology sector. Mobile banking either through actual investing or any other means is on the rise.

The turmoil in the international financial markets of advanced economies, that started around mid-2007, has exacerbated substantially since August 2008. The financial market crisis has led to the collapse of major financial institutions and is now beginning to impact the real economy in the

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.

Today, banking industry plays a major role in the financial sector and does its business in a highly competitive environment with very low interest margins due to high competitiveness of the industry. Every bank in the industry is equipped with a high tech IT platform and operates its network for the benefit of its customers. A bank offers many products and services to increase its market share and focuses on customer service as the competitive advantage to grab more business.

Research Methodology: The research is exploratory in nature and the study uses the latest available published secondary data for the years 2008-2013 compiled from Report on Trends and Progress of Banking in India RBI. For the purpose of analysis of data appropriate trend and percentage analysis is used.

Banking Industry is the chief indicator of the growth of any country’s economy. India with its huge populations presents a huge scope for banking industry. State Bank of India is a public sector unit and enjoys the market leader position. HDFC is catching up on the back of its exquisite growth in last decade. And with the relaxation of government control, private players are in a much better position to compete. But both the banks have their own problems

The Reserve Bank of India (RBI) is India’s central bank. Though public sector bank’s currently dominate the banking industry, numerous private and foreign banks exist. India 's government-owned banks dominate the market. Their performance has been mixed, with a few being consistent profitable. Several public sector banks are being restructured, and in some the government either already has or will reduce its ownership.

Performance of banking sector is affected by legislature and framing policies by the government. Banking activities are significantly affected by budget proposal. The dynamics of Indian Banking sector are drastically changed with securitization act. The Securitization Act has given more power to the banking sector against defaulting borrowers. Further, changes to be implemented on the issue of voting rights among private sector banks are likely to speed up the consolidation process.

the development process . Indian banking system has commendable progress in increasing geographical spread and

Indian banks are trying to make the life of their customers easier. Not just bill payment, but you can also invest shop or buy tickets and plan a holiday simply at your fingertips. In fact, research from ICICI Bank tells us that, "The Internet banking base has been growing at a remarkable pace over the past few years. At present around 78 per cent of the bank 's customer base has registered for E- banking." In order to get started, all what is needed is a computer device with a modem or other dial-up connection, a checking account with a bank that offers online service and the patience to complete about a one-page application--which can usually be done online. You can avail various services which are as follows:

The literature review was done by referring to studies and documentations on the implementation of electronic banking in various banks in India by various universities, and independent consultants. The focus of research question is what are the technical and legal drivers and barriers for adopting electronic banking system in India? This paper initially discusses about the existing electronic banking models; and looks at

Opinions differ as to the origin of the work "Banking". The word "Bank" is said to be of Germanic origin, cognate with the French word "Banque" and the Italian word "Banca", both meaning "bench". It is surmised that the word would have drawn its meaning from the practice of the Jewish money-changers of Lombardy, a district in North Italy, who in the middle ages used to do their business sitting on a bench in the market place. Again, the etymological origin of the word gains further relevance from the derivation of the word "Bankrupt" from the French word "Banque route" and the Italian word "Banca-rotta" meaning "Broken bench" due probably to the then prevalent practice of breaking the bench of the

Currently, the overall banking in India is considered as fairly mature in terms of supply, product range and reach even though reach in rural India still remains a challenge for the private sector banks. Well computerized private sector banks are beginning to compete seriously with the nationalized banks. They aim at a profitable and wealthy part of the market and, in contrast to the nationalized banks, do not recognize any social responsibilities to small account holders or to a rural and semi-urban clientele. Almost 80% of the business are still controlled by Public Sector Banks (PSBs). PSBs are still dominating the commercial banking system.

Over the last few decades information technology has played an important role in Indian economy. It has affected all the industries especially the banking industry and has provided a way for the banks to differentiate their products and services. The traditional way of financial services delivered to customers called the branch based operations which had been used by the banks for more than 200 years, has been replaced by the advent of multiple technologies and application. For instance, Automated Teller Machine (ATM) displaced cashier tellers, telephone represented by call centers replaced the bank branch, the internet replaced mail, credit cards and electronic cash replaced bank transactions. The reason was the numerous key advantages that banks could gain by providing electronic banking services. In this way they had lower transactions cost, 24 hour trading, more extended business territory and also increased efficiency in daily banking process. The Banking Sector is also facing very stiff competition. In order to succeed such competition, they must offer a wide array of products with the latest technology. At present many banks and financial institutions are actively developing new electronic banking products for their customers throughout the world (Alagheband 2006) . The key players of banking industry are its customers and all the efforts made by the banks are to satisfy the desirable needs of