...Implications of M&As of Banking sector on Indian economy Author Author Shilpa Vivek Agrawal Shreya Deepak Saraf Novel Institute of Management Studies, Novel Institute of Management Studies Chinchwad, Pune. India. Chinchwad, Pune. India. Co-Author Dr. D.M Gujarathi Chairman BOS, Cost and Works Accounting University of Pune, India --------------------------------------------------------------------------------------------------------------------- Abstract Financial System is the most important institutional and functional vehicle for economic transformation of any country. India is slowly but surely moving from a regime of 'large number of small banks' to 'small number of large banks. The process of mergers and acquisitions has gained substantial importance in today's corporate world. This process is extensively used for restructuring the business organizations. In India, the concept of mergers and acquisitions was initiated by the government bodies. M & A in banking sector have been on rise in recent past both globally & in India. With the help of mergers and acquisitions in the banking sector, the banks can achieve significant growth...
Words: 2948 - Pages: 12
...Banking in India From Wikipedia, the free encyclopedia Jump to: navigation, search Structure of the organised banking sector in India. Number of banks are in brackets. Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1770; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955. Contents [hide] * 1 History * 2 Post-Independence * 3 Nationalisation * 4 Liberalisation * 5 Adoption of banking technology * 6 Further reading * 7 References * 8 External links | [edit] History Merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India.(Joint Stock Bank: A company that issues stock and requires...
Words: 3102 - Pages: 13
...INTRODUCTION TO INDIAN BANKING SYSTEM: OBJECTIVE- Here our main objective is to analyse the impact of mergers and acquisition in banking sector in India. We will try to find out from the experience of US and EU how Indian banking sector will respond if some major players merge together. In this report we will create a situation in which five big players in banking sector merge together and we will analyse the effect of merger on Indian Banking sector. In the past three decades, India's banking system has earned several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to metropolises or cities in India. In fact, Indian banking system has reached even to the remote corners of the country.1 This is one of the main aspects of India's banking growth story. The first banks were Bank of Hindustan (1770- 1829) and The General Bank of India, established 1786 and since defunct. The largest bank, and the oldest still in existence, is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955. The Government of India issued an ordinance...
Words: 1558 - Pages: 7
...new entrants…………………………………………...8 5.9.3 Buyer power……………………………………………………..8 5.9.4 Supplier power…………………………………………………..8 5.9.5 Threat of substitute………………………………………………8 5.9 PESTLE analysis to SBI…………………………………9 5.10.6 Political…………………………………………………………...9 5.10.7 Economical…………………………………………………….....9 5.10.8 Legal……………………………………………………………...9 5.10.9 Technological……………………………………………………10 5.10.10 Socio-culture & Environmental…………………………………10 Task-2 5. Global impact on making decision and police………10 6.10 Global trends in Banking……………………………….…...10 6.11 Internet banking……………………………………….…….11 6.12 Mobile banking...……………………………………………11 6. Technology management………………………………..11 7.13 Move to a new core system…………………………………..11 7.14 Challenge for bank …………………………………………..12 7.15 Vendor association selection…………………………………12 7.16 Affiliate Bank...
Words: 3023 - Pages: 13
...RESEARCH PROJECT on Online Banking Submitted in partial fulfillment for the award of Bachelors of Business Administration By Varun Mehta Batch 2012-14 Under the Supervision of Miss Deepa Chauhan Professor School of Business Studies Date – DECLARATION FORM I hereby declare that the Research Project Work entitled, Online Banking, submitted by me, VIBHA SHIVHARE, Enrolment No. 11SBSBBA126 for the partial fulfillment of the Bachelor of Business Management (BBA) to Sharda university , Greater Noida is my own original work and has not been submitted earlier either to Sharda University or to any other Institution for the fulfillment of the requirement for any course of study. I also declare that no chapter of this manuscript in whole or in part is lifted and incorporated in this report from any earlier / other work done by me or others. Place : School of Business Studies Date : Certificate by Faculty Guide This is to certify that Ms. VIBHA SHIVHARE, student of BBA Batch 2012-14, Enrolment No 11SBSBBA126 has successfully completed his/her Research Project on ONLINE BANKING(topic). This Project Report is submitted in partial fulfilment for the award of Bachelors of Business...
Words: 5854 - Pages: 24
...Issue : 1 | Jan 2014 ISSN - 2250-1991 Research Paper Commerce Mobile Banking in Rural India: Roadmap to Financial Inclusion * Ms.Rati Dhillon * Assistant Professor, Department of Commerce, Bharati College, University of Delhi t ABSTRACT The concept of digital inclusion in the banking industry has become a parlance in the worldwide. The term digital inclusion provides the people the skills of basic technology to participate in the knowledge economy that lead to an enhanced performance of macro-economic. The study deals with the mobile banking in India. This study in detail discusses about the mobile banking, the emergence of mobile banking and present scenario in India, mobile banking in rural areas of India, how mobile banking helps in achieving financial inclusion. Further it will also discuss how mobile banking helps in overcoming the financial challenges with the analysis of scope of mobile banking in the near future. Keywords : Digital Inclusion, Banking, Mobile Banking, Rural, Financial Inclusion Introduction to Mobile Banking According to Tiwari and Buse (2007) mobile banking is also referred as m-banking, SMS banking and so on. Mobile banking is the term used for performing account transactions, balance checks, credit applications, payments and more through a mobile device like tablet computer like iPad or mobile phone. Mobile banking is a provision offered by financial and banking institutions that help users avail their services with the help of devices like...
Words: 3329 - Pages: 14
...Bank Licences | | |I. Introduction | | | |II. Statutory background- Banking Regulation Act, 1949 | | | |III. Policy of issuing licence to banks in India | | | |IV. Differentiated Bank Licensing- Examining Pros and Cons | | ...
Words: 3127 - Pages: 13
...ABSTRACT In the straitjacket world of Indian banking, something as fascinating as Islamic banking is a distant dream. Nonetheless, countless advocates of Islamic banking have been trying their best over the years to propagate the concept .India has 14 percent Muslims population which is more than the Muslim population of Bangladesh, turkey, Egypt, Iran, Nigeria, Afghanistan, Sudan, Iraq, Saudi Arabia etc But there is no any full-fledged Islamic bank currently working in this country. Reserve Bank of India and other legal institutions of India are not issuing license to banks to work as per the principles of Islamic banking. Necessary measures are, however, being taken by India Government for the same. The present study is taken to explain how Islamic banking is better for India and weather it is possible to integrate Islamic banking to current financial system. It also explains how Islamic bank can commence in India by suggesting necessary measure for the same 1 INTRODUCTION Islamic banking has been defined as banking in consonance with the ethos and value system of Islam and governed, in addition to the conventional good governance and risk management rules, by the principles laid down by Islamic Shariah. Interest free banking is a narrow concept denoting a number of banking instruments or operations, which avoid interest. Islamic banking, the more general term is expected not only to avoid interest-based transactions, prohibited in the Islamic Shariah, but also to...
Words: 6495 - Pages: 26
...Impact of IT in Changing banking operation Introduction of Indian banking industry History of Indian Banking The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955. Key points in history of Indian banking industry * Establishment of Reserve bank of India in April 1935 and its nationalization in January 1, 1949. * Nationalisation of 14th largest commercial bank in India on July !9, 1969. At present there are 26 nationalised bank in India wth this the government controls around 91% of banking service in India * Liberalisation In the early 1990s, the then Narasimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be known as New Generation tech-savvy banks. includes Oriental bank of commerce, Axis bank, ICICI bank and HDFC bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong...
Words: 4539 - Pages: 19
...Reserve Bank of India (RBI). It was established in April 1935 with a share capital of Rs. 5 crores on the basis of the recommendations of the Hilton Young Commission. The share capital was divided into shares of Rs. 100 each fully paid which was entirely owned by private shareholders in the begining. The Government held shares of nominal value of Rs. 2,20,000. Reserve Bank of India was nationalised in the year 1949. The general superintendence and direction of the Bank is entrusted to Central Board of Directors of 20 members, the Governor and four Deputy Governors, one Government official from the Ministry of Finance, ten nominated Directors by the Government to give representation to important elements in the economic life of the country, and four nominated Directors by the Central Government to represent the four local Boards with the headquarters at Mumbai, Kolkata, Chennai and New Delhi. Local Boards consist of five members each Central Government appointed for a term of four years to represent territorial and economic interests and the interests of co-operative and indigenous banks. The Reserve Bank of India Act, 1934 was commenced on April 1, 1935. The Act, 1934 (II of 1934) provides the statutory basis of the functioning of the Bank. The Bank was constituted for the need of following: • To regulate the issue of banknotes • To maintain reserves with a view to securing monetary stability and • To operate the credit and currency system of the country...
Words: 1946 - Pages: 8
...Case Study: State Bank of India, World's Largest Centralized Core Processing Implementation Analyst Author: Robert Hunt Senior Research Director, Retail Banking Feb 2009 Reference # V58:06R TowerGroup Take-Aways • The State Bank of India (SBI), the largest and oldest bank in India, had computerized its branches in the 1990s, but it was losing market share to private-sector banks that had implemented more modern centralized core processing systems. • To remain competitive with its private-sector counterparts, in 2002, SBI began the largest implementation of a centralized core system ever undertaken in the banking industry. • The State Bank of India selected Tata Consultancy Services to customize the software, implement the new core system, and provide ongoing operational support for its centralized information technology. • Although SBI initially planned to convert only 3,300 of its branches, it was so successful that it expanded the project to include all of the more than 14,600 SBI and affiliate bank branches. • The State Bank of India has achieved its goal of offering its full range of products and services to all its branches and customers, spreading economic growth to rural areas and providing financial inclusion for all of India's citizens. Report Coverage The implementation of the Tata Consultancy Services (TCS) BaNCS Core Banking at the State Bank of India (SBI) and its affiliate banks represents the largest centralized core system implementaion ever undertaken...
Words: 4047 - Pages: 17
...Introduction Indian banking system has emerged as a vibrant sector in the Indian economy. Strong regulatory mechanism, inherent strength in the economy, and progressive policy framework which supports, nurtures, and helps in growing the financial institutions. Indian financial services industry is dominated by the banking sector that contributes significantly to the level of economic activity. The banking structure in India is broadly classified into public sector banks, private sector banks and foreign banks. The public sector banks continue to dominate the banking industry, in terms of lending and borrowing, and it has widely spread out branches which help greatly in pooling up of resources as well as in revenue generation for credit creation. The role of banks in accelerating economic development of the country has been increasingly recognized since the nationalization This facilitated the rapid expansion of banking in terms of its geographical reach covering rural India, in turn leading to significant growth in deposits and advances. Eventually, however, the government used banking sector to finance its own deficit by frequently increasing cash reserve ratios (CRR) and statutory liquidity ratio (SLR). Deregulation of the Indian financial system in 1991 followed by various financial sector reforms during the period 1990 through 1998 led to a major restructuring of the Indian banking industry. India has entered high growth trajectory with the initiation of economic reforms...
Words: 8415 - Pages: 34
...INDIAN BANKING SECTOR ACKNOWLEDGEMENT Any accomplishment requires the effort of many people and this work is not different. We would like to express our gratitude to the faculty for his invaluable insights, without which this project would not have been completed. We would also like to thank everyone including our friends who directly or indirectly helped us in the completion of this project. DECLARATION We hereby declare that the project titled “Indian Banking Sector” is an original and independent work and is the end result of our own efforts and that the acknowledgement has been given in the bibliography and references to the sources are they printed, electronic or personal. TABLE OF CONTENTS 1. ACKNOWLEDGEMENT………………………………………………..….1 2. DECLARATION……………………………………………………………..2 3. INTRODUCTION……………………………………………………………4 4. CURRENT TRNEDS.……….………………………………………………5 5. INDUSTRY STRUCTURE………………………………………………….7 6. MARKET STRUCTURE…………………………………………………….9 7. NATURE OF COMPETITIVENESS……………………………………….10 8. FUTURE PROSPECTS…………………………………………………….11 9. CONCLUSION……………………………………………………………….12 10. BIBLIOGRAPHY/WEBLIOGRAPHY……………………………………….13 INTRODUCTION: The executives of India's banking community nodded their heads proudly when Prime Minister Manmohan Singh said in a speech: "If there is one aspect in which we can confidentially assert that India is ahead of China, it is in the robustness and soundness of our banking system...
Words: 2439 - Pages: 10
...A “SUMMER TRAINING” PROJECT REPORT ON COMPARATIVE STUDY BETWEEN PRIVATE SECTOR BANKS ANP PUBLIC SECTOR BANKS Submitted To: PUNJAB TECHNICAL UNIVERSITY,JALANDHAR MASTER OF BUSINESS ADMINISTRATION(MBA) SESSION(2007-09) CT INSTITUTE OF ENGINEERING,MANAGEMENT & TECHNOLOGY,JALANDHAR (SHAHPUR CHAMPUS) PREFACE Someone has rightly said that practical experience is for better and closer to the real world then mere theoretical exposure. The practical experience helps the students view the real world closely, which in turn widely influences their perceptions and argument their understanding of the real situation. Research work constitutes the backbone of any management education programme. A management student has to do research work quite frequently during his entire span. The research work entitle “COMPARATIVE STUDY BETWEEN PRIVATE SECTOR BANKS AND PUBLIC SECTOR BANKS” aims to analyze various services provided by private sector banks and public sector banks for this purpose Pathankot city have been chosen. ACKNOWLEDGEMENT I feel immense pleasure to give the credit of my summer training project work not only to one individual effort of all those who concern with it. I want to thanks to all those individual who guided me to move on the track. The summer training project entitled “COMPARATIVE STUDY BETWEEN PRIVATE SECTOR AND PUBLIC SECTOR BANKS” I am gratefully indebted to Mr. Davinder...
Words: 8998 - Pages: 36
...RESERVE BANK OF INDIA (RBI) INTRODUCTION: The Reserve Bank of India (RBI) is the Central Bank of the country. It was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Reserve Bank was started as share-holders bank with a paid-up capital of Rs.5 crores. On establishment it took over the function of management of currency from the Government of India and power of credit control from the Imperial Bank of India. The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated. Though originally privately owned, since nationalisation in 1949, the Reserve Bank is fully owned by the Government of India. PREAMBLE: The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as: "...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage." ORGANIZATION OF THE RESERVE BANK: 1. Central Board 2. Local Board 3. Board for Financial Supervision 4. Board for Payment and Settlement Systems 1. CENTRAL BOARD: The Reserve Bank's affairs are governed by a central board of directors. The board is appointed by the Government of India in keeping with the Reserve Bank of India Act. • Appointed/nominated for...
Words: 2000 - Pages: 8
