INTRODUCTION
Banking in India originated in 18th century. The General Bank and The Bank of
Hindustan were among the first banks to be set up. State Bank Of India is the oldest bank of the country. Then in 1935 the Reserve Bank of India was established. A step ahead
were taken when all the major banks were nationalised in 1969 by the Government of India .
Oudh Commercial Bank was the first entirely Indian joint stock bank set up in 1881 in Faizabad .Due to its failure in 1958, Punjab National Bank wsa set up in Lahore in 1894. Then post independence the policy of 1990 shook the Banking sector completely in India. Tech savvy methods of working for banks changed the approach of banking in India. These things led to retail boom
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These bonds are listed on exchanges.
Functions
A commercial banks performs various number of activities. It satisfies sectors like trade, agriculture, industry, communication. Also it plays an important role in social and economic needs. Generally there are 2 types of functions performed by commercial banks, namely ,primary functions and secondary functions .
Primary functions of commercial banks are :
1.They accept deposits from public
2.They provide loans and advances .
3.Another important function of them are credit creation.
Some secondary functions of commercial banks are :
1.Collection and clearance of cheque
2.To make payment of insurance, rent
3.To deal in transactions of foreign
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To provide facility of money transfer
2. To give facility of safety locker
3. To accept bills for the purpose of payment
4. To grant traveller’s cheque
5. To provide smart cards, credit cards,debit cards
6. To give the facility of merchant banking
Example of commercial banks are some pubic sector banks are State Bank of India, Bank of Baroda, Punjab National Bank, Syndicate Bank, Indian Overseas Bank ,Oriental Bank of Commerce, State Bank of Travencore etc. While some private sector commercial banks are HDFC Bank, ICICI Bank, Axis Bank, Global Trust Bank Ltd.
STUDY AREA STATE BANK OF INDIA (SBI)
State Bank Of India (SBI) is an Indian financial service company and also a MNC. It is a wholly government owned bank having its headquarter situated in Mumbai. It has 17,000 branches ,including 190 foreign offices as of December 2013. It is one of the top 4 leading commercial banks in India which also includes ICICI Bank, Punjab National Bank, HDFC
Flaherty, Edward. 1997. A Brief History of Banking in the United States <http://odur.let.rug.nl/~usa/E/usbank/bank03.htm> (accessed 12-12-99)
Weisberger, Bernard A. “The Bank War: History of First U.S. Government Bank.” American Heritage. July-Aug. 1997: 10-12. General OneFile. Web. 12 Apr. 2011.
n President Andrew Jackson “ He’s made his decision, now let’s see him enforce it”
= = = = National Westminster Bank came into being in 1968 when National Provincial Bank and Westminster Bank merged and began trading on 1st
(1914). The Federal Reserve Act of 1913. In O. Sprague, The Quarterly Journal of Economics, Vol. 28 No. 2 (pp. 213-254). Oxford University Press.
The industry is composed by a continuum of banks which produce a homogenous product — banking service. Domestic as well as foreign competition is violent. Not to forget the fact that ICBC has not been the first bank to embrace internet banking. So, it is all the more reason which places the bank in the most precarious position to continuously shield it self from the volleying competition.
Toward the end of this era around the early 1930s that is when devastation hit. Our market was at an all time low, people began to fear and panic. Eventually the market collapsed, this was known as the Great Depression. People realized the market was not looking great, they started withdrawing their money from the bank. The money people invested into banks was not properly backed up. This caused fear and the banks were not able to reimburse people their money back. As a result of this the Federal Deposit Insurance Corporation (FDIC) was established, which creates stability within banks and also establishes trust. This is important so that people become aware that it is okay to fully trust banks and insure their money in with
The bank was formed to bridge the gap which existed in many Western African countries as most banks were state or foreign owned. Ecobank was established as a commercial bank due the fact that there were hardly any commercial banks in West Africa. Commercial banks are in the business of offering loans (line of credits), current accounts, etc.
1885-Indian National Congress founded by A. O. Hume to unite all Indians and strengthen bonds with Britain.
The study is primarily designed to find out the continuous issue of the banking system in
The invention of money was a major improvement in peoples’ lives. In the past, people usually had to travel all day to find the person who is willing to exchange their goods. In addition, the goods people want to exchange did not have the standard value of measurement. This led to unequal exchanges. Furthermore, it is not convenient to carry heavy goods from one place to another for an exchange. To solve these issues, money will be the only solution. Later, people tend to develop money from cowry shells to credit cards for the convenience and to improve their society.
Vasco da Gama landed at Calicut, sailing via the Cape of Good Hope in 1498. This marked the beginning of
Banks sector is playing an important role in economies. The banking industry, as the classic and the most influential of financial intermediaries, facilitates economic operations. Financial sector in the worldwide country has been changes over these years by looking the changes of financial structure environment and economic conditions. Thus, banks are a very important point to financial system and play an important role as control and contribute growth to the economic sector.
After the Panic of 1907, banking reform was done by the Federal Reserve System that forced all the institutions receiving deposits to hold higher reserves and subject to inspections. The new system standardized and centralized the holding of bank reserves. Despite that new regime, another banking crisis happened in 1930, 1931, 1933. The solution was to separate the banks into two types: commercial banks which accepted deposits (low risk, banks had access to credit from the Fed, insured deposits) and investments bank which had lower regulations. Economic troubles decreased until S&L (bank for housing loans)
It is a known fact that the banking industry plays a huge role in today’s society, the industry has grown rapidly of many decades and still growing. The banking sector is that sector of the society that is actually responsible for the handling of financial assets for other sector of the economy, they do this by investing the financial assets in order to create more wealth in the society while regulating all the activities involved in the process. (What is the banking Sector 2015)