Vivek Kumar Singh

BANKING INDUSTRY IN INDIA

1870 Bank of Hindustan 1934 RBI 1955 Formation of SBI1969 Nationalization of 20 banks1980 Nationalization of 6 banks1993Liberalization and entry of private sector 1995-2000 electronic fund transfer

Evolution of Indian banking industry

Top five Private Sector Banks

ICICI Bank HDFC Bank Axis Bank Yes Bank KotakMahindra bank

SBI Punjab National Bank Bank of Baroda IDBI Bank Syndicate Bank

Top five Public Sector Banks

Who regulates the financial sector in India?

Non Performing Assets(NPA)

Net Interest Margin (NIM)

Business & Profit per employee

Cost per transaction

Operational cost

Revenues from fees and commission

Factors that affect the profitability

What is present Bank Rate in India ?

What is prevailing Cash Reserve Ratio in India ?

What is prevailing Repo Rate in India ?

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The Present Rates: Bank rate–9.00%

Cash Reserve Ratio (CRR)–4%

Statutory Liquidity Ratio (SLR)–22.50%

Reporate–8.00%

Reverse Reporate–7.00%

Present Scenario

Mortgages to cross Rs.40 Lakh crores by 2020.

Rapid growth of branches and ATM.

Mobile banking to see huge growth.

Infrastructure financing to reach over Rs.20 trillion

on commercial banks book by 2020.

New Models to serve the Small & Medium

Enterprises (SME)

Opportunities in banking

Rs. 11,200 Crores is proposed to be provided for Capital infusion in Public Sector Banks. 5,207 new branches have been opened against the target of 8,023. Bhartia Mahila Bank has been established. Rs. 6,000 Crores and Rs. 2,000 Crores have been provided to Rural and Urban Housing Funds respectively. The target of Rs. 700,000 Crores of Agricultural Credit is likely to be exceeded by the Banks. The target for 2014-15 is Rs. 800,000 Crores.

Banking budget 2014

Rs. 23,924 Crores has been released under the Interest Subvention Scheme on farm loans, with effective rate of interest on farm loans at 4 percent including subvention of 2 percent and incentive of 3 percent for prompt payment.

Contd.

An association of five major emerging national economies: Brazil, Russia, India, China, and South Africa.

BRICS members are all developing or newly industrialised countries,

As of 2013, the five BRICS COUNTRIES represent almost 3 billion people which is 40% of population, with a combined GDP of US$16.093 trillion(20% 0f world GDP)

As of 2014, the BRICS nation represented 18% of the world economy.

BRICS-NEW DEVELOPMENT BANK

Leaders of the BRICS emerging market nations launched a $100 billion development bank and a currency reserve pool in their first steptoward reshaping the western-dominated international financial system.

The bank aimed at funding infrastructure projects in developing nations.

This success will help countries meet short-term liquidity pressures.

Contd.