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    1.2 An Introduction To Deposit Mobilization Deposit Mobilization

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    Deposit mobilization has become important for banks due to technological advances, liberalization of markets, and banking crises in the 1990s. These developments have reduced the relevance of dividing lines between financial products, institutions, and locations. Organized banking began in India in 1786 with the General Bank of India. After independence, the Reserve Bank of India was established as the central bank and it nationalized several banks to increase coverage. By the early 2000s, the Indian banking system included public sector banks, private sector banks, foreign banks, cooperative banks, and development banks.

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    1.2 An Introduction To Deposit Mobilization Deposit Mobilization

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    sahil
    27 views3 pages
    Deposit mobilization has become important for banks due to technological advances, liberalization of markets, and banking crises in the 1990s. These developments have reduced the relevance of dividing lines between financial products, institutions, and locations. Organized banking began in India in 1786 with the General Bank of India. After independence, the Reserve Bank of India was established as the central bank and it nationalized several banks to increase coverage. By the early 2000s, the Indian banking system included public sector banks, private sector banks, foreign banks, cooperative banks, and development banks.

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    MBA Project Report IT

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    Project Report6

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    Deposit mobilization has become important for banks due to technological advances, liberalization of markets, and banking crises in the 1990s. These developments have reduced the relevance of dividing lines between financial products, institutions, and locations. Organized banking began in India in 1786 with the General Bank of India. After independence, the Reserve Bank of India was established as the central bank and it nationalized several banks to increase coverage. By the early 2000s, the Indian banking system included public sector banks, private sector banks, foreign banks, cooperative banks, and development banks.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    27 views3 pages

    1.2 An Introduction To Deposit Mobilization Deposit Mobilization

    Uploaded by

    sahil
    Deposit mobilization has become important for banks due to technological advances, liberalization of markets, and banking crises in the 1990s. These developments have reduced the relevance of dividing lines between financial products, institutions, and locations. Organized banking began in India in 1786 with the General Bank of India. After independence, the Reserve Bank of India was established as the central bank and it nationalized several banks to increase coverage. By the early 2000s, the Indian banking system included public sector banks, private sector banks, foreign banks, cooperative banks, and development banks.

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    of 3

    1.

    2 An Introduction to Deposit Mobilization

    Deposit Mobilization:
    Banking has traditionally remained a protected industry in many emerging economies. However,
    a combination of developments has compelled banks to change the old ways of doing business.
    These include, among others, technological advancements, disintermediation pressures arising
    from a liberalized marketplace, increased emphasis on shareholders value and macroeconomic
    pressures and banking crisis in 1990s. As a consequence of these developments, the dividing
    line between financial products, types of financial institutions and their geographical locations
    have become less relevant than in the past.
    Banking means the accepting, for the purpose of lending or investment , of deposits of money
    from the public , repayable on demand or otherwise , and withdraw able by cherub, draft , order
    or otherwise .

    COMPANY PROFILE
    History of Banking Sector in India:
    Organized banking was active in India since the establishment of the General Bank of India in
    1786. After independence, the Reserve Bank of India (RBI) was established as the central bank
    and in 1955, the Imperial Bank of India, the biggest bank at the time, was taken over by the
    government to form state-owned State Bank of India (SBI). RBI had undertaken an exercise to
    merge weak banks to strong banks and the total number of banks thus reduced from 566 in 1951
    to 85 in 1969.

    With the objective of reaching out to masses and meeting the credit needs of all sections
    Of people, the government nationalized 14 large banks in 1969 followed by another 6 banks in
    1980. This period saw enormous growth in the number of branches and the banks branch
    network became wide enough to reach the weakest sections of the society in a vast country like
    India. SBIs network of 9033 domestic branches and 48 overseas offices is considered to be one
    of the largest for any bank in the world. The economic reforms unleashed by the government in
    early nineties included banking sector too, to a significant extent. Entry of new private sector
    banks was permitted under specific guidelines issued by RBI. A number of liberalization and de-
    regulation measures aimed at consolidation, efficiency, productivity, asset quality, capital
    adequacy and profitability have been introduced by the RBI to bring Indian banks in line with
    International best practices. With a view to giving the state-owned banks operational flexibility
    and functional autonomy, partial privatization has been authorized as a first step, enabling them
    to dilute the stake of the government to 51 per cent. The government further proposed, in the
    Union Budget for the financial year 2000-01, to reduce its holding in nationalized banks to a
    minimum of 33 per cent on a case by case basis.

    Composition of the Banking system at the Beginning of the New Millennium :


    At present the number of nationalized banks is 20 .Several foreign banks were allowed to operate
    as per the guidelines of RBI. At present the Indian Banking System can be classified into the
    following categories:
    PUBLIC SECTOR BANKS:
    ~ State Bank of India and its 7 Associate Banks
    ~ Nationalized Banks
    ~ Regional Rural Banks (RRBs) sponsored by Public Sector Banks
    PRIVATE SECTOR BANKS:
    ~ Old Generation Private Sector Banks
    ~ New Generation Private Sector Banks
    ~ Foreign Banks in India
    ~ Scheduled Co-operative Banks
    ~ Non Scheduled Banks
    COOPERATIVE SECTOR BANKS:
    ~ State Co-operative Banks
    ~ Central Co-operative Banks
    ~ Primary Agriculture Credit Societies
    ~ Land Development Banks
    ~ Urban Co-operative Banks
    ~ State Land Development Banks
    DEVELOPMENT BANKS:
    ~ Industrial Investment Bank of India (IIBI)

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