Chapter1. An Introduction to the study

Transcription

1 Chapter1. An Introduction to the study Introduction Today, he is an option. On day two days from one branch to another is the most efficient bank transferred the money went. Now it is as instant messaging or dial a pizza. Money has become the order of the day. The first bank in India, though conservative, was established in From 1786 until today, the visit of the Indian banking system can be divided into three distinct phases. They are as mentioned below: The initial phase of Indian banks from 1786 to 1969 Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector reforms. Since 1991, the Indian banking system reforms in the financial and banking sector with the introduction of the new phase. To make it more clear write-up, I Phase I, Phase II and Phase III as a prefix landscape : Phase I: General Bank of India was established in Next came Bank of Hindustan and Bengal. As independent units of Bengal, East India Company (1809), Mumbai Bank (1840) and Madras Bank (1843) called for the establishment of the Bank and the Presidency banks. These three banks in 1920 and Imperial Bank of India was established by private shareholders banks, mostly Europeans shareholders were as a started. Especially the first time in 1865 Allahabad Bank was founded By Indians, Punjab National Bank Ltd. was established in Headquarters in Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore was established. Reserve Bank of India came in 1 P a g e

2 1935. During the first phase of development experienced periodic failures between 1913 and 1948 was very slow and banks. 1,100 mostly small banks. Banking Regulation Act, 1949 to amend Indian Since 1965 (Act No. 23 of 1965) of the Act, after the government's commercial banks to streamline the functioning and activities has been changed, the Banking Companies Act, 1949 came with. Reserve Bank of India as central banking authority for the supervision of banking in India was vested with extensive powers. During those days, the public has little confidence in banks. As a Later deposit mobilization was slow. Postal savings bank facility provided by the Department equal to the relatively more secure. In addition, funds were largely given to traders Phase II: After independence, the Indian banking sector reforms, the government took a big step. In 1955, especially in rural and semi-urban areas a large-scale comprehensive banking facilities were nationalized Imperial Bank of India. Making subsidiary of SBI, July 19, 1969 seven banks were Nationalized in 1960, major process of nationalization was carried out. Indian Prime Minister Indira Gandhi attempted. 14 major commercial banks were nationalized in the country. Indian banking sector reform and the nationalization of banks in 1980 with the second phase was seven. This step under government ownership of banking in India, brought to 80%. Banking institutions in the country to regulate the steps taken by the Government are: 1949: the enactment of the Banking Regulation Act. 1955: SBI was nationalized. 1959: Nationalization of SBI subsidiaries. 2 P a g e

3 1961: Insurance cover extended to deposits. 1969: 14 nationalized Banks. 1971: Creation of credit guarantee corporation. 1975: Construction of Regional Rural Banks. 1980: 200 million over seven nationalization of banks with deposits. After the nationalization of banks, branches of public sector banks in India, deposits and advances rose to 11,000% took a huge leap of 800%. Sunlight and confidence about the sustainability of these entities implicit faith in government ownership of the banking public Phase III: At this stage of reform measures in the banking sector has introduced many more products and features. In 1991, a committee under the chairmanship of M. Narasimham worked for the liberalization of banking practices which was established in his name. Countries with foreign banks and their ATM stations flooded. Give a satisfactory service to customers being kept trying. Phone banking and net banking is introduced. The whole system is more convenient and faster. Time is more important than money. India's financial system has shown a great deal of flexibility. It is a flexible exchange rate regime, foreign exchange reserves are high, the capital account is not yet fully convertible, and banks and their customers have limited foreign currency risk. 3 P a g e

4 1.1.5 Banks in India: 1) SBI 2) ICICI Bank 3) Central Bank of India 4) HDFC Bank 5) Allahabad Bank 6) India 6) Bank 7) Bank of Baroda 8) Axis Bank 9) City Bank 10) Corporation Bank 11) Bank of Maharashtra 12) City Union Bank 13) Dena Bank 14) Federal Bank 15) Indian Bank 16) Dhanlaxmi Bank 17) Oriental Bank of Commerce 18) IDBI Bank 19) Punjab National Bank 20) South Indian Bank 4 P a g e

5 21) HSBC Bank 22) Induslnd Bank 23) Canara Bank 24) Andhra Bank 25) ING Vysya Bank 26) Syndicate Bank 27) Vijaya Bank 28) Karnataka Bank 29) UCO Bank 30) State Bank of Hyderabad 31) Vijaya Bank 32) Indian Overseas Bank 33) Lakshmi Vilas Bank 34) Punjab and Sind Bank 35) Yes Bank 36) Centurion Bank 37) Kotak Mahindra Bank 5 P a g e

6 1.1.6 Benefits to Rurals: Small loans to buy a buffalo. loans for setting up a tea shop. To provide life and non-life insurance. weather insurance for farmers. Peanut, castor, soya, rice, etc. insurance policies sold to farmers KCC proxy Banking rural and agricultural lending and lending guidelines will add to the good old government to extend an innovative approach. Even miles away from the village, mutual funds, insurance and those from equity trading. This has been made possible thanks to something, Internet Kiosk and ATM for rural India. Communication networks connected to the remote villages of the southern part of the country atoms in the counter has been set up in partnership with ICICI Bank. This is known as proxy banking. With the help of fiber optic cables, wireless local loop technology works on the counter. 6 P a g e

7 1.1.7 Easy Banking: This section is fully dedicated to banking techniques. A decade ago, the banking sector was tough on a finger tip. Now it is possible. As a gateway to your banking transaction with a connection to a mobile hand sets, technology is the latest innovation means necessary to make. In addition, SMS Banking, Mobile Banking in India, including the modernization of major steps taken by banks towards Internet banking and ATMs. With all these tools and systems, has complete freedom to experience. Your account, your fund transfer, payment and what to do everything for centuries, has been followed in physical bank check. But this is no standing for hours in front of the cash counter and a time to withdraw your own money is boundation Reserve Bank of India: India Act (1934), according to the central bank, The Reserve Bank is the central bank Reserve Bank of India of the country's main vital functions. The country's central bank Reserve Bank of India (RBI) is. Rupee was established in April 1935 with share capital. Rs 5 crore on the basis of the recommendations of the Hilton Young Commission. Classification of RBIs functions: I. pose the issue II. III. IV. Control of bank loans. Four control of foreign exchange operations. Banker to the government and the money market. 7 P a g e

8 Reserve Bank's monetary actions are important as they control and regulate the amount of money and credit in the country are as important. Equally important, however, in the case ofthe Reserve Bank's economic backwardness are non-monetary. Reserve Bank supervisory Function (many would consider a monetary function) can be considered as a non-monetary function. i. Licensing of banks, ii. iii. iv. Branch expansion, Liquidity of their assets, Management and ways of working; v. Inspection vi. vii. Amalgamation, Reconstruction and liquidation. Under the supervision and inspection of banks, RBI has improved significantly. Develop economically and operationally sound and viable units of commercial banks. Supervision powers of the Reserve Bank now has been extended to non-banking financial intermediaries. Below are the study, which covers four types of banks in Pune city. 1. Sbi Bank 2. ICICI Bank 3. Central Bank of India 4. HDFC Bank 8 P a g e

9 1.2.1 State Bank of India (SBI): In the first decade of the 19th century can be traced back to the SBI. The June 2, 1806, on Establishment of the Bank of Calcutta in Kolkata began with. Bank on 2 January 1809, three years later, was redesigned as the Bank of Bengal. Bengal Government of British India established under the sponsorship of first ever joint-stock bank said. Mumbai And Madras (established on 1 July 1843) (established on 15 April 1840) followed the Bank of Bengal. January 27, 1921 Imperial Bank of India, India were merged to form the modern banking that these three banks dominated the scene. In 1951, a Turning point in the history of State Bank of India, the launch of Independent India's first Five Year Plan. Planning and especially in the rural areas of the country aimed at serving the Indian economy in general. Confine their services to the urban area of Imperial Bank of India, including the country's plans commercial banks SBI Products and Services: SBI, corporate and retail banking products and other value-added services. A) Create an account opening: State Bank of India to open a new account enables online. You already can apply for new accounts in branches Where Accounts. You savings, current, fixed deposit and recurring deposit account can be opened. B) Account details: C) Activity inquiries: Online SBI online transaction provides for the status of the investigation. Transaction details and transaction can view the current status and verify. 9 P a g e

10 D) SBI e-tax: via e-sbi you can pay your taxes online. This feature TDS, income tax, indirect tax, corporate tax, property tax, estate duty and enables you to pay fringe benefits. E) E-ticketing: Online SBI online via rail, air and can book bus tickets. If you do not have a irctc.co.in log on and create an identity card, just to book your train ticket. Plan your trip and book tickets to offer. F) Bill Payment: To view and pay your bills online is a simple and convenient service. No more late payments No more queues No more hassles of credit checks G) SBI: Motilal Oswal Securities Limited and SBI Caps Securities Limited (SSL), now In alliance with state-of-theart State Bank of India (SBI)-art primarily to meet the 'EZ SBI Online Trading introduction of platform you need to trade (currently Available to Indian residents only) and online investment actually Provides Experience world-class - anywhere, anytime. 10 P a g e

11 H) RTGS / NEFT: You RTGS / NEFT service to accounts in other banks can transfer money from your bank account to the state. LIC premium: To register and pay the premiums on SBI is the premium Payment options. I) SBI Mutual Fund: SBI Mutual Fund schemes can invest online. If you want to invest in logon and State Bank of India, payment options, select a plan. J) Transfer of Funds: Accounts in the same branch or other branches of funds enabled Transfers to transfer money. To transfer money, the right to Transaction is an active Internet banking users. The daily limit you to transfer money from accounts: between accounts in the same branch: 10 million. 5 million in the accounts between branches. K) Third Party Transfer: Adding as a trusted third party can transfer the money to the accounts of third parties. Beneficiary account should any branch of State Bank of India. L) Demand Draft: 11 P a g e

12 To register online Internet banking enables application requests a demand draft. Any of your accounts (savings, current accounts, loans or overdrafts) can get a Demand draft. M) Check- Book Request: You can request a Check book online. N) Demat Account Statement: O) Donation: You are using religious and charitable organizations can make donations. P) contact us: SBI Corporate Center Madame Cama Road Mumbai India Website: (BSNL / MTNL toll-free) or 18,004,253,800 (BSNL toll free too.) 12 P a g e

13 1.3.1 ICICI Bank: In Five decades, ICICI Group has partnered its economic growth and development in India. Both from a social and business perspective, a priority for the group is to promote the overall development of the region Mission: Government and independent organizations will be achieved through active collaboration History: Original ICICI Bank ICICI Limited, an Indian financial institution promoted in 1994, and its wholly owned subsidiary. ICICI Bank, on Was the initiative of the Government of India and representatives of Indian industry was formed in Your business has changed. In 1999, NYSE and Non-Japan Asia to be listed on the first bank or financial institution ICICI became the first Indian company. Strategic options for both institutions, and universal banking strategy at ICICI Group would create the optimal legal structure.value and increase The vast talent pool of ICICI and its subsidiaries use. ICICI Bank's Social Initiatives Group (Signature), ICICI Bank, health, education and access to finance our work within pioneered a nonprofit group established in In January 2008, the ICICI Foundation for Inclusive Growth is the legacy of the ICICI Group. In October 2001, ICICI and ICICI Bank ICICI Fusion and Its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, ICICI Bank's Board directors has approved two. Merger in March 2002 in Ahmedabad, Gujarat High Court in January 2002 is Approved by shareholders 13 P a g e

14 of ICICI and ICICI Bank, and in April 2002 the High Court of Judicature Bombay has been made by the Reserve Bank. As a result of the Merger, the ICICI group's financing and banking operations, both Wholesale and retail, have been integrated into one unit. Directors Business conduct and ethics for employees of ICICI Bank Corporate Profile: ICICI Bank's financial performance and business initiatives: A) Career opportunities: India's second largest bank with a wide opening Explore. B) Award: Time and again our innovative banking services has been recognized and rewarded in the world. C) News Room: ICICI Bank's latest business and social initiatives, as well as catch up with innovative product launches. D) Corporate Social Responsibility: ICICI Bank at the national level are deeply engaged in human and economic development. ICICI Bank in various sectors and programs, the Foundation works closely with. E) On-line benefits: 14 P a g e

15 Fund Transfer Home Insurance Bill payments Motor insurance Mobile Recharge Money Manager Health insurance Ticket Booking Travel Insurance Receive Money Card Protection Plan Instant Payment 15 P a g e

16 1.3.5 Accounts and Deposit: To meet their unique banking needs ICICI Bank has designed a gamut of accounts and deposits. Our extensive branch and ATM network and mobile, phone, internet banking and doors, and its best to add features such as the banking experience. I Dream Deposit: To realize their dreams in every stage of your life unique offering is one of four fixed deposit schemes. II. Fixed Deposit: To achieve an attractive return on their savings. III. Recurring deposit: Look Younger mature into a large amount of their savings. iv. Savings Account: Banking experience like never before - through ATM, branch, internet, mobile and phone. V. Privilege Banking: Enjoy special advantages in products and services. VI. Salary Account: Take advantage of an efficient payroll account. 16 P a g e

17 VII. Silver Savings Account: Why settle for silver when you savings account. VIII. Young Stars Savings Account: Introduction ICICI Bank Young Stars account, a bank account specifically designed for children. Your child can have fun with your money! All new wealth management experience Welcome to: For every need): A team of expert specialists - Investment Banking Loans Property Services 17 P a g e

18 Business Banking B) Special Priority Service: Wealth Management branches and Lounge Dedicated Customer Care Helpline Priority Processing Center C) Customized Investment Plan: Five-stage process Wide range of investment products up-to-date research D) special privileges just for you 18 P a g e

19 Personal Banking Privileges International Debit Cards Family Wealth Account Life Privilege Business Banking Privileges The Central Bank of India: Sir Sorab It was established on 21 December 1911 by G. Pockhanawala fully Owned and managed by Indians was the first commercial Indian bank claims. Given failure of Alliance Bank of Simla in 1923 acquired the Tata Industrial Bank. Government of India in 1969 along with 13 other people, July 19 nationalized banks. Central Bank of India is one of the oldest commercial banks. In 1987, UTI and HDFC has fostered collaboration with IL & FS. In 1989, it promoted Cent Bank Home Finance Limited, a wholly owned subsidiary Company Profile: Established in 1911, Wholly owned and Indians, managed by Central Bank of India was the first Indian to habitat commercial bank. Yes Sir Sorab bank established Pockhanawala, the ultimate realization of the dream was the Founder of the bank. Mr. 19 P a g e

20 Mehta Pherozesha A truly 'Swadeshi Bank' was first president. He also said, "India lives on people's faith central bank and the bank regards himself as," the pair said. In the last 99 years of history, the bank has weathered many storms and challenges Corporate Vision: A strong, vibrant and active bank / financial super market to emerge as positive human, financial and technical resources and cohesion through effective risk control system conforms to contribute to the evolving needs of the economy Corporate Mission: A useful and enjoyable for a change in the customer banking experience. Take advantage of technology for efficient and effective delivery of banking services. bouquet to tailor products and services to meet customers' expectations. All state branches across India spread across the country 20 P a g e

21 1.4.5 Products and Services: Below is a large range of corporate and retail banking products provides the CBI are as follows: - I Deposit Money Multiplier (earned interest back to the originally stated) II. Monthly Interest Deposit Receipt (without affecting the amount of monthly interest) III. Quarterly Interest Deposit Receipt (quarterly interest without affecting the original amount) iv. Best percent (a plan that provides easy liquidity and high returns) V. Central senior citizen deposits (a plan that gives additional interest for senior citizens) VI. Central Flexi Yield Deposit (a plan that offers flexible rate of interest on term deposits), etc. CBI's loan products include: - I percent mortgages (mortgage against the property) II. Kalyani percent (for women entrepreneurs) 21 P a g e

22 III. St. Purchase (consumer durables, two wheelers and four wheelers to buy) iv. Percent liquid (against shares) V. per student VI. Against percentage rent (rent receipts) VII. Centvyapari (for small and medium business) VIII. Percentage multipurpose (home loan, personal loan and buy a combination of St.) IX. Percentage Marriage X-cent tour IX. Percentage Jewel Ornament (for purchase) XII. Cent Computer Loan XIII. Per trade (the need for business overdraft facility) XIV. St. home (home building / to) Agartala. Personal loans for pensioners and teachers, employees of educational institutions, corporate customers, employees, etc. Loan 22 P a g e

23 CBI agriculture, small and medium and large enterprises focused on key areas. The bank also introduced several schemes for self-employed to promote employment among youth. I Central Kisan Credit Cards (credit facilities for farmers) II. Central Small Udhyami credit card (the current working capital finance to small borrowers) III. Central Artisan Credit Card (craftsmen to meet the credit requirements) Iv. Central to the benefit of people throughout the country self credit card (capital / block finance working capital) is offered by the bank. Under Services: - I Percentage Bill Pay (online utility payments) II. Its central card (credit card), cash management services and other services Banc assurance 23 P a g e

24 III. Central Card (Electronic Credit Card can be used at electronic terminals) IV. Debit card (account access and convenient and safe way to drive) are offered by the bank HDFC Bank: RBI private banks, in August 1994, a major Indian financial services company based in India, HDFC Bank Ltd, established in allowed. Bank Housing Development Finance Corporation, India's leading housing finance company (founded in 1977) was encouraged by. For other customers, boasting faster with all branches of the bank to transfer money online to ensure connectivity. In addition, retail customers, allowing access multi-branch bank's branch network and Automated Teller Machine (ATM). Competitive advantage and market share, market position and expertise to build the bank, their uses up-to-date technology Company Profile: HDFC Bank was incorporated in August 1994, and were present in 996 cities and towns of India is a nationwide network of 2000 branches and 5998 ATMs. 'HDFC Bank Limited with its registered office in Mumbai called the bank was involved with. Next year, it started its operations as a scheduled commercial bank. Today, the bank, as many as 1412 branches and 3275 ATMs in India boasts of Business Focus: HDFC Bank deals with three key business segments. - Wholesale banking services, retail banking services, treasury. Working capital finance, trade services, corporate finance, commercial banking and corporate banking partners to provide more than 50 have been recorded. It also foreign exchange and derivatives, money 24 P a g e

25 market and debt trading and equity research areas is providing sophisticated product structures. A) Wholesale Banking Services: Blue chip manufacturing companies in the Indian corp. Corporate and agro-based small and medium-sized businesses. For these customers, corporate client bank, banks, mutual funds, is a leading provider of working capital finance, trade services, transactional services, cash management, commercial and behavior of the stock market and banks provide a wide range of banking services to members are. B) Retail Banking Services: HDFC Bank Visa (Visa Electron), MasterCard and Maestro debit cards as well as debit card to launch an international cooperation issues was the first bank in India. At the end of 2001 the Bank launched its credit card business. Bank's the total card base (debit and credit cards) were more than 13 million by March Merchant establishments Bank Debit / business "merchant acquiring" more than 70,000 points of sale (POS) terminals for credit card acceptance is one of the major players. Bank Term deposits, loans, bill payments, etc. Internet banking A wide range of services including a net based B2C opportunities is posted. C) Treasury: Foreign exchange and derivatives, money market and debt securities and equity local currency - in this business, bank has three main product areas. These services are provided through the bank's Treasury team. Treasury trading portfolio investment returns and is responsible for managing market risk. 25 P a g e

26 1.5.4 Products and Services: A) Personal Banking Savings accounts Salaries account Current account Fixed Deposit Demat Account Safe Deposit Lockers Loan Credit card Debit card Prepaid Cards Investment and Insurance Foreign Exchange Services Payment Services Net banking Instra Alerts Mobile Banking Instra Questions 26 P a g e

27 ATM Phone Banking B) NRI Banking Dollar savings accounts Rupee Current Account Rupee Term Deposits Foreign currency deposits Returning accounting for Indians Quickremit (North America, UK, Europe, South East Asia) Link India (Middle East, Africa) Czech Lockbox Telegraphic / Wire Transfer Czech Lockbox Telegraphic / Wire Transfer Czech / DD / TCS Money transfer through Mutual Funds Private Banking Portfolio Investment Schemes Loans Payment Services 27 P a g e

28 Net banking InstaAlerts Mobile Banking Instra Questions ATM Phone Banking Our Citizen's Charter products, facilities and provides relevant information about the services we provide Awards: A "world-class Indian Bank" is: HDFC Bank began operations in 1995 with a simple mission. Product quality and service excellence, we will help get us there realize that only has a single-minded focus. Today we are well on their way to targets that are proud to say toward Bloomberg UTV Financial Leadership Asian Banker Strongest Bank in Asia Pacific Best Bank Award 2011 IBA Banking Technology Awards 2010 winner - year 1) Best Online Bank 28 P a g e

29 2) Best Customer Initiative 3) Best Use of Business Intelligence 4) Best Risk Management System 5) Runner - Best Financial Inclusion 29 P a g e

30 1.5.7 Study limitations: 1. The results of this study may not apply to other areas based on data collected from the Pune city. 2. Some respondents behavior is dynamic in nature. 3. Low return rate of the questionnaire duly filled in, with no response bias is often unconvincing. 4. In the questionnaire respondents were asked refused to give personal information. 5. Educated respondents are co-operating and it can only be used. 6. This questionnaire is sent once control is lost. 7. A questionnaire was sent because of the difficulty of amending the approach is firmly inbuilt. 8. It truly representative respondents are willing to do what is difficult. 9. Some of the respondents could not respond because of busy schedules. The current survey, however, the only defendant who can influence findings, provides for the collection of the data. The same, however, the causes of excessive costs and was not attempted. However, as before, collected Disclaimer All care is taken to ensure that the representative noted. 30 P a g e