The document discusses banking services in India. It provides an overview of the role and evolution of banks in India. It then discusses the current banking service industry in India, highlighting that it is well-regulated and resilient. It also discusses key investments in the industry like payments banks and mergers and acquisitions. Finally, it summarizes Punjab National Bank as an example, outlining its founding, management, and financial performance at a high level.
The document discusses banking services in India. It provides an overview of the role and evolution of banks in India. It then discusses the current banking service industry in India, highlighting that it is well-regulated and resilient. It also discusses key investments in the industry like payments banks and mergers and acquisitions. Finally, it summarizes Punjab National Bank as an example, outlining its founding, management, and financial performance at a high level.
The document discusses banking services in India. It provides an overview of the role and evolution of banks in India. It then discusses the current banking service industry in India, highlighting that it is well-regulated and resilient. It also discusses key investments in the industry like payments banks and mergers and acquisitions. Finally, it summarizes Punjab National Bank as an example, outlining its founding, management, and financial performance at a high level.
The document discusses banking services in India. It provides an overview of the role and evolution of banks in India. It then discusses the current banking service industry in India, highlighting that it is well-regulated and resilient. It also discusses key investments in the industry like payments banks and mergers and acquisitions. Finally, it summarizes Punjab National Bank as an example, outlining its founding, management, and financial performance at a high level.
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FINANCIAL MARKETS
& SERVICES ASSIGNMENT 1: INTRODUCTION (ABOUT THE SERVICE ) :- The service which I chose is Banking Services. Banking as a service is an end-to-end process ensuring the overall execution of a financial service provided over the web. Banking services provide funds for business as well as personal needs of individuals. They play a significant role in the economy of a nation. Let us know about the role of banking. • It encourages savings habit amongst people and thereby makes funds available for productive use. • It acts as an intermediary between people having surplus money and those requiring money for various business activities. • It facilitates business transactions through receipts and payments by cheques instead of currency. • It provides loans and advances to businessmen for short term and long-term purposes. • It also facilitates import export transactions. • It helps in national development by providing credit to farmers, small-scale industries and self-employed people as well as to large business houses which lead to balanced economic development in the country. • It helps in raising the standard of living of people in general by providing loans for purchase of consumer durable goods, houses, automobiles, etc.
EVOLUTION OF BANKS IN INDIA
From the vedic period beginning of 1750 BC there are evidences of loans of the ancient India. During Mauryan rule, an instrument called Adesha, an order to a banker to pay the third person with a desire was in use which is now called as the bill of exchange as per our understanding today. During Buddhist period, the letters of credit was in use given in large towns . In the modernized banking every bank started issuing overdraft in order to earn more profits, this led to non-maintenance of adequate reserves which caused financial crises. Now to maintain the goodwill of the bank, every government has the central bank whose instructions should be followed by all the commercial banks. By the end of 16th century and during 17th the banking functions like transferring of funds, accepting deposits, money lending, money changing were combined with the issuance of bank debts which were the substitutes for silver and gold coins. Banks became important for funding by the end of the 17th century, which led to the changes in the government regulations. The new banking implementations promoted the industrial growth by making the convenient means of payments.
2: ABOUT THE BANKING SERVICE INDUSTRY :-
As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalised and well-regulated. The financial and economic conditions in the country are far superior to any other country in the world. Credit, market and liquidity risk studies suggest that Indian banks are generally resilient and have withstood the global downturn well. Indian banking industry has recently witnessed the roll out of innovative banking models like payments and small finance banks. RBI’s new measures may go a long way in helping the restructuring of the domestic banking industry. The digital payments system in India has evolved the most among 25 countries with India’s Immediate Payment Service (IMPS) being the only system at level 5 in the Faster Payments Innovation Index (FPII).
Market Size The Indian banking system consists of 26 public sector banks, 20 private sector banks, 45 foreign banks, 64 regional rural banks, 1,562 urban cooperative banks and 94,384 rural cooperative banks, in addition to cooperative credit institutions (FY17 data). In FY07-18, total lending increased at a CAGR of 10.94 per cent and total deposits increased at a CAGR of 11.66 per cent. India’s retail credit market is the fourth largest in the emerging countries. It increased to US$ 281 billion on December 2017 from US$ 181 billion on December 2014.
Investments / Developments Key investments and developments in India’s banking industry include:
As of September 2018, the Government of India launched India
Post Payments Bank (IPPB) and has opened branches across 650 districts to achieve the objective of financial inclusion. The total value of mergers and acquisition during 2017 in NBFC diversified financial services and banking was US$ 2,564 billion, US$ 103 million and US$ 79 million respectively . The biggest merger deal of FY17 was in the microfinance segment of IndusInd Bank Limited and Bharat Financial Inclusion Limited of US$ 2.4 billion . In May 2018, total equity funding's of microfinance sector grew at the rate of 39.88 to Rs 96.31 billion (Rs. 4.49 billion) in 2017- 18 from Rs 68.85 billion (US$ 1.03 billion) .
3:ABOUT THE COMPANY (incorporation ,
management & financial performance) :- Any one of the Banking Company in detail :-
Punjab National Bank (PNB) is an Indian public
sector banking and financial service company, with its headquarters in New Delhi, India. The bank was founded in 1894. As of 31 March 2019, the bank has over 110 million customers, 7001 branches (7,000 as on 2nd oct, 2018) and 10681 ATMs across 764 cities . PNB's founders included several leaders of the Swadeshi movement such as Dyal Singh Majithia and Lala Harkishen Lal, Lala Lalchand, Kali Prosanna Roy, E. C. Jessawala, Prabhu Dayal, Bakshi Jaishi Ram, and Lala Dholan Dass. Lala Lajpat Rai was actively associated with the management of the Bank in its early years. The board first met on 23 May 1894 PNB has the distinction of being the first Indian bank to have been started solely with Indian capital that has survived to the present. PNB has had the privilege of maintaining accounts of national leaders such as Mahatma Gandhi, Jawahar Lal Nehru, Lal Bahadur Shastri, Indira Gandhi, as well as the account of the famous Jalianwala Bagh Committee.
