Overview of Banking

By
Mr Kishor Kalyan Mushrif

Training For You

1 6/12/2013

Money Lenders

Financial Institutions

Commercial banks Non-banking Finance Companies Leasing Companies Factoring Companies Forfaiting Companies

Training For You

2 6/12/2013

Financial Institutions
Central bank Discount and Finance House Development Financial Institutions Mutual Funds Special Financial Institutions Housing Finance Companies Regional Rural Banks

Training For You 3 6/12/2013

Financial Institutions
NABARD State Finance Corporations SIDBI Residual Non-banking Finance Companies Infrastructure Finance Companies

Training For You

4 6/12/2013

Indian Banking Growth Phases

Early Phase [1780s to 1960s] Various Banks Bank of Hindustan, Bank of Bombay Bank of madras Closure of banks, Amalgamation of banks

Training For You

5 6/12/2013

Indian Banking Growth Phases

1969: Nationalization of 14 major commercial banks 1980: 7 more banks Nationalized Huge growth in bank branches during 1970s and 1980s SBI and Associates not clubbed with nationalized banks

6 6/12/2013

Training For You

Indian Banking: Growth Phases

Post 1991: New Generation Private Sector banks approved Initial paid up capital Rs One Hundred Crores IndusInd bank, Bank of Punjab, HDFC Bank, UTI Bank, Times Bank [merged with HDFC Bank] Global Trust Bank [merged with Oriental Bank of Commerce] ICICI Bank [merger of ICICI with Bank] IDBI Bank [merger of IDBI Bank with IDBI]
7 6/12/2013

Training For You

Functions of Reserve Bank of India

Central banking functions, Monetary Policy formulation and implementation, Regulation of commercial banks, Supervision of commercial banks, Bank and Branch Licensing,

Training For You

8 6/12/2013

Functions of Reserve Bank of India

Administration of FEMA Issue and Management of Public Debt of India, Management of MICR Clearing Custodian of Cash Reserves of commercial banks Provider of Liquidity Support Provider of Refinance

Training For You 9 6/12/2013

Differentiating Commercial Banks

One of the oldest financial institutions Deal with all strata of society Deal with customers all over the world Play various roles Maintain variety of customer relationships

Training For You

10 6/12/2013

Differentiating Commercial Banks

Undertake more functions than any other financial institution Failure more damaging than any other failure Highly leveraged business Existence depends upon faith.

Training For You

11 6/12/2013

Indian Banking System

Reserve Bank of India Nationalized banks Private Sector Banks [Old] Private Sector Banks [New Generation] Foreign banks Cooperative Banks SBI and Associates

Training For You 12 6/12/2013

Banking Defined
Section 5 [b] of Banking Regulations Act defines Banking Acceptance of deposits of money For Lending or Investment Deposits repayable on Demand or Otherwise Deposits withdrawable by Cheque, Draft, Order, or Otherwise.

Training For You 13 6/12/2013

Major Activities of Commercial Banks

Acceptance of deposits from Public Lending of various types, Investments Remittances Safe Deposit Lockers Safe Custody of Articles Collection of Negotiable Instruments

Training For You 14 6/12/2013

Major Activities of Commercial Banks

Issuance of Letters of Credit Issuance of Letters of Guarantee Advising and Confirmation of LCs Dealings in Forex Collection of Taxes for Government Pension Payments

Training For You

15 6/12/2013

Major Activities of Commercial banks

Custodial Services Dealing in Bullion Merchant banking Investment banking Issuance of Indemnities for customers Purchase/ Sale of Bonds, Securities, Scrips etc.

Training For You 16 6/12/2013

Types of Deposits
Current Accounts Savings Accounts Term Deposits Recurring Deposits Resident v Non Resident Deposits

Training For You

17 6/12/2013

Types of Remittance
Issuance / Payment of DDs Issuance/ Payment of Bankers Cheques Issuance / Payment of telegraphic Transfers SWIFT Message Types Electronic Funds Transfer

Training For You

18 6/12/2013

Types of Loans
Short term / Demand, Medium Term Long term Retail Corporate Funded facilities/ Non Funded facilities

Training For You

19 6/12/2013

Types of Loan
Short Term [Retail] Overdrafts Cash Credits IPO Funding Clean Loans Loans against Deposits/ Government Securities

Training For You 20 6/12/2013

Types of Loans
Medium Term [Retail] Personal Loans Educational Loans Clean Loans Vehicle Loans

Training For You

21 6/12/2013

Types of Loans [Retail]

Housing Loans Loans against House Property, Vehicle Loans Term Loans

Training For You

22 6/12/2013

Types of Loans
Short Term [Corporate] Overdrafts Cash Credits Clean Loans

Training For You

23 6/12/2013

Bill Finance
Cheque Purchase [Inland/ Foreign Currency] Bills Purchase [Inland] Bills Discounting [Inland] Bills Negotiation [Inland LCs] Bills Negotiation [Export LCs]

Training For You

24 6/12/2013

Non Funded Facilities

Issuance of Inland LCs Issuance of Import LCs Confirmation of Inland LCs Confirmation of Export LCs Issuance of Inland Guarantees Issuance of Foreign Guarantees Co acceptances [Inland] Co acceptances [Foreign]

Training For You 25 6/12/2013

Functions of Reserve Bank of India

Management of Forex Reserves of India Currency management Management of value of INR against basket of currencies, Banker to Government

Training For You

26 6/12/2013