Public and Private Sector Banks in India

“A comparative Study on Public and Private Sector Banks in India”

Public Sector

A public sector endeavor is an administration which is

• Owned by public governments including Central, State or Local governments, to the extent of 50 % or more ;

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• Is under the top managerial control of having public governments

• Is established for the accomplishment of a definite set of public intent

• Is accordingly placed under a system of public answerability

• Is engaged in an activity of concern character

Private Sector

• The private sector endeavor is an administration which is owned, managed & A ; controlled by private persons or a group of persons or both. This is besides engaged in concern activity but with the motivation of net income maximization instead than public service like in instance of public sector endeavor.

Aims of Public Sector Enterprise

? Helps in rapid economic growing & A ; industrialization of the state & A ; creative activity of necessary substructure for economic development,

? To gain return on investing & A ; therefore bring forth resources for development,

? To advance redistribution of income and wealth,

? To make employment chances,

? To advance balanced regional development,

? To advance import permutation, save and earn foreign exchange for the economic system

? Acts as a countervailing force and set up an effectual competition to projects in private sector and

? To derive control over the dominating highs of the economic system.

The followers are the list of Public Sector Banks in India

O Allahabad Bank

O Andhra Bank

O Bank of Baroda

O Bank of India

O Bank of Maharastra

O Canara Bank

O Central Bank of India

O Corporation Bank

O Dena Bank

O IDBI Bank

O Indian Bank

O Indian Overseas Bank

O Oriental Bank of Commerce

O Punjab & A ; Sind Bank

O Punjab National Bank

O Syndicate Bank

O UCO Bank

O Union Bank of India

O United Bank of India

O Vijaya Bank

List of State Bank of India and its subordinate, a Public Sector Banks

* State Bank of India

O State Bank of Hyderabad.

O State Bank of Indore.

O State Bank of Mysore.

O State Bank of Saurastra.

O State Bank of Travancore.

O State Bank of Bikaner & A ; Jaipur.

Private Bank

The first Private Bank in India to have an in rule blessing from the Reserve Bank of India was Housing Development Finance Corporation Limited, to put up a bank in the private sector Bankss in India as portion of the RBI ‘s liberalisation of the Indian Banking Industry. It was incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and commenced operations as Scheduled Commercial Bank in January 1995.

ING Vysya, yet another Private Bank of India was incorporated in the twelvemonth 1930. Bangalore has a pride of topographic point for holding the first subdivision origin in the twelvemonth 1934. With consecutive old ages of backing and invariably puting new criterions in banking, ING Vysya Bank has many credits to its history.

List of Private Banks in India

O BANK OF PUNJAB.

O BANK OF RAJASTHAN.

O CATHOLIC SYRIAN BANK.

O CENTURION BANK.

O CITY UNION BANK.

O DHANALAKSHMI BANK.

O DEVELOPMENT CREDIT BANK.

O FEDERAL BANK.

O HDFC BANK.

O ICICI BANK.

O INDUSIND BANK.

O ING VYSYA BANK.

O JAMMU & A ; KASHMIR BANK.

O KARNATAKA BANK.

O KARUR VYSYA BANK.

O LAXMI VILAS BANK.

O SOUTH INDIAN BANK.

O UNITED WESTERN BANK.

O UTI BANK.

PUBLIC BANK

Allahabad Bank

Established on April 24, 1865 in Allahabad by a group of European, Allahabad Bank is besides the oldest Joint Stock Bank of India.Allahabad Bank is one of the taking Bankss in India. Allahabad Bank was one of those. Currently it offers a whole scope of fiscal services to 1000s of clients across the state through its 2260 subdivisions, besides its Internet banking services. In the twelvemonth 1969, the Government of India nationalized 13 commercial Bankss Allahabad Bank has its headquarter located in Kolkata.

Brief History

After its constitution in 1865, Allahabad Bank became a portion of P & A ; O Banking Corporation in 1920 with a command monetary value of Rs. 436 per portion. In 1923, sing the concern chances, the headquarter of the bank was shifted to Kolkata. On July 19, 1969, when the Government of India nationalized Allahabad Bank along with 13 other Bankss, it had 151 subdivisions across the state with sedimentations of Rs. 119 crore and progresss of Rs. 82 crore. In 1989, United Industrial Bank Ltd. merged with nationalized Indian bank. Allahabad Bank besides instituted a entirely owned subordinate for Merchant Banking, called Allahabad Bank Finance Ltd.

Allahabad Bank released its first Initial Public Offer ( IPO ) of 10 crore ( face value Rs. 10 per portion ) in October, 2002. It reduced the Government shareholding to 71.16 % . It once more released Follow on Public Offer in April, 2005 of 10 crore equity portions. It once more reduced the Government shareholding to 55.23 % .

It was June, 2006 when the Allahabad Bank went international to open up its first Representative Office at Shenzen in China. In October, 2006, Allahabad Bank went hi-tech for axial rotation out its first subdivision under Core Banking Service. It opened up its first abroad subdivision at Hong Kong in February 2007. In March 2007, the concern of Allahabad Bank crossed Rs. 1,00,000 crore grade.

Merchandises

Following are the list of merchandises offered by Allahabad Bank to its clients:

1. Deposit Merchandises

O Flexi-Fix Deposit.

O Rs. 5 Banking.

O All Bank Mahila Sanchay Account.

O All Bank Vikash SB Account.

O All Bank Premium Current Accounts.

O Current Plus Deposit Scheme.

O Sishu Mangal Deposit Scheme.

2. Retail Recognition Merchandises

O Housing Loan.

O Education Loan.

O Car Loan.

O Personal Loan for Pensioners.

O Personal Loan for Doctors.

O Loan Against NSC/KVP.

O Allahabad Bank Rent Loan.

O Allahabad Bank Property Scheme.

O Allahabad Bank Furnishing Loan.

O Gold Loan Scheme.

O Allahabad Bank Mobile Scheme.

O Overdraft Facility in SB Accounts.

O Allahabad Bank Abhushan Scheme.

O Allahabad Bank Trade Schem.

O Allahabad Bank Gyan Dipika Scheme.

O Allahabad Bank Reverse Mortgage Scheme.

3. Other Recognition Merchandises

O Allahabad Bank-Expo.

O Allahabad Bank Kisan Shakti Yojana.

O Allahabad Bank Kisan Credit Card.

Other Servicess

The Following are the list of other services offered by Allahabad Bank.

O Depository Services.

O Depository Services.

O Visa Debit Cum ATM Card.

O Gold Card Scheme for Exporters.

O Charter for MSMEs.

O Government Business.

O National Electronic Funds Transfer.

O Regional MSME Care Centres.

O MSME Care Centre in Jharkhand State for All Banks.

O All Ayshman Bima Yojana.

O Cash Management Services.

O Real Time Gross Settlement.

Corporate Detailss:

Bank of Baroda India from an organisation based on private capital and province ownership, at present is incarnation of endeavor and corporate administration, situated in Mumbai. The new logo of the bank comprises double B alphabet, keeping the Sun rays. It was founded by Maharaja Sayajirao Gaekwad in 1908 in Baroda. It is referred as the Baroda Sun.

Activities:

The general merchandise and services offered by the Bank of Baroda India are,

O Corporate – sweeping banking, sedimentations, loans and progresss, assessment and merchandiser banking, hard currency direction and remittals.

O Personal – sedimentations, Gen-Next Services, retail loans, recognition cards, debit cards, Baroda Health, Multi City Cheque, cabinets.

O Business – sedimentations, loans and progresss, Multi City Cheque, BoB money express, Collection services, ECS, cabinets.

O International – NRI services, FCNR loans, offshore banking, export and import finance, international exchequer.

O Treasury – domestic and forex operations.

O Rural – sedimentations, precedence sector progresss, remittals, pension, cabinets.

Performance:

O The Baroda bank secured the ISO 9001:2000 enfranchisement for its15 subdivisions, and by the terminal of 2007 it has a mark to accomplish this quality grade for 54 more subdivisions.

O Financial Highlights – the concern consequences of the Bank of Baroda India as recorded on 31st March, 2006 are, the entire sedimentations Rs.93,661.99crores, entire progresss Rs. 59911.78 crores, entire investings Rs.35114.22 crores, entire assets Rs.113392.53 crores and net net income Rs.826.96 crores.

Andhra Bank

Andhra Bank was registered on 20 November 1923 and commenced concern on 28 November 1923 with a paid up capital of Rs 1.00 hundred thousand and an authorized capital of Rs 10.00 hundred thousand. The Bank crossed many mileposts and the Bank ‘s Entire Business as on 30.06.2008 stood at Rs.83,256 Crores with a Clientele base over 1.74 Crores.The Bank is rendering services through 2139 Business Delivery Channels dwelling of 1371 subdivisions, 66 Extension Counters, 38 Satellite Offices and 664 ATMs spread over 21 States and 2 Union Territories as at the terminal of June, 2008. To supply value-added services to Customers, the Bank has set up its ain 664 ATMs as on 30.06.2008. Of which 03 Mobile ATMs and two with Biometric entree. Besides, ATM sharing agreements with several Banks including SBI group, IDBI Bank, UTI Bank, HDFC Bank, Indian Bank and others under National Financial Network Switch covering 24856 ATMs.All Branches are 100 % computerized, 1186 units namely, 1101 Branches, 68 Extension Counters, 15 Service Centres networked under Cluster Banking solution and supplying “ Any Branch Banking ” . Real Time Gross Settlement Facility and National Electronic Fund Transfer installation has been introduced in 723 Branchs.

* Bank is migrating to “ Centralized Core Banking Solution 118 Branchs have already migrated to CBS. It is proposed to cover 550 subdivisions by September 2009. This will profit the clients, who will hold entree to banking and fiscal services anytime, anyplace through multiple bringing channels. [ elucidation needed ] Andhra Bank is a innovator in presenting Credit Card games in the state in 1981.

* Our Bank introduced Internet Banking Facility to all clients of bunch linked subdivisions. [ elucidation needed ] Rail Ticket Booking Facility is made available to all debit card holders through IRCTC Website through a separate gateway. Corporate Website is available in English, Hindi and Telugu Languages pass oning Bank ‘s image and information. Bank has been given ‘BEST BANK AWARD ‘ a banking engineering award by IDRBT, Hyderabad for extended usage of IT in Semi Urban and Rural Areas on 02.09.2006. [ commendation needed ] IBA Jointly with TFCI has conferred the Joint Runner-up Award to the Bank in the Bet Payments enterprise in acknowledgment of outstanding accomplishment of the Bank in advancing ATM Channel.Bank successfully conducted “ Bancon 2006 ” , a two twenty-four hours event at Hyderabad, considering on Inclusive Growth – A New Challenge. Kiddy Bank Scheme, with insurance benefits, was relaunched to instill nest eggs wont among the kids. Bank has mobilized about 90000 new histories during 2007-08. [ commendation needed ]

* As a portion of “ Fiscal Inclusion ” , Bank adopted two territories, viz. , Srikakulam in Andhra Pradesh and Ganjam in Orissa and achieved 100 % coverage. Bank has introduced Smart Card Scheme Pilot undertaking in Warangal District and the same will be extended to other Lead Districts in due class. Bank has opened 2.11 lakh histories under “ No-frill histories ” class boulder clay 30.06.2008.

* Andhra Bank, along with A P State Government, NABARD, Canara Bank, Indian Bank, IOB and SBH sponsored the Andhra Pradesh Banker ‘s Institute of Entrepreneurship Development, which will offer preparation to unemployed young person for bettering their accomplishments in Andhra Pradesh.

* Bank adopted Gundugolanu small town, West Godavari District, Andhra Pradesh – birth topographic point of Dr.Bhogaraju Pattabhi Sitaramayya for all-round development. A comprehensive budget with an spending of Rs.5.50 Crore is finalized for bettering wellness, sanitation, instruction and societal service installations in the small town.

* Bank has been ranked No.1 in footings of figure of Life Insurance Policies mobilized amongst all the Agency Banks covering with “ Life Insurance Corporation of India ” . Bank besides has affiliation with United India Insurance Company Limited under Bancassurance.

* Bank was ranked 532nd for the twelvemonth ended 31.03.2007 amongst Top 1000 Banks in the universe by “ The Banker ” – a London based publication based on Tier I Capital as defined by Basel ‘s Bank for International Settlements.

* Bank is in the procedure of organizing a Joint Venture in Malaysia in association with Bank of Baroda and Indian Overseas Bank.

* The Bank opened its Representative Office in Dubai in May, 2006 and Representative Office at Jersey City, New Jersey ( U S A ) , in June 2009.

* Bank feels United States would be an ideal location as Andhra Bank has been a family name among many NRIs at that place. A bridgehead in New Jersey is strategic for the 84 twelvemonth old bank as it has a big figure of non occupant Indians from Andhra Pradesh.

* Thus Bank agreements extreme concern to client satisfaction by offering advanced and need based fiscal merchandises and services utilizing state-of-the art engineering.

Deposit Schemes

* Savings Histories

* Current Histories

* Term Deposits

* Arogyadaan Scheme

* Bancassurance Life

* Bancassurance ( Non Life )

Bank of India

Bank of India was established on 7th September, 1906 by a group of reputed business communities from Mumbai. The Bank was under private ownership and control boulder clay July 1969 when it was nationalized along with 13 other Bankss.

It is get downing with merely one office in Mumbai, with a paid-up capital of Rs.50 hundred thousand and 50 employees ; the Bank has made fast advancement over the old ages and blossomed into a mighty establishment with a strong national presence and ample international operations. The Bank gets a prime place among the Nationalized Banks in India.

Main Activities

Amongst the criterion services provided by Bank of India the particular service that it provides is Multi Branch Banking. Multi Branch Banking service is available to clients of networked subdivisions of the Bank. Under this service, the client of one subdivision will be able to transact on his history, from any other networked subdivision of the Bank. This installation is at present available at 200 cities/towns across the state. A list of MBB subdivisions is available at the terminal of this page. Services available in MBB

* Cash Deposits

* Cash Payments

* Transportation Of Fundss

* Statement of A./c For a Given Period.

* Balance Inquiry.

* Taging Stop Payment Of a Cheque.

* Fate Of a Cheque.

Other Value Added Services such as “Centralized Telebanking” , “SMS Banking” , “PC Banking” would besides be available at these networked subdivisions.

Performance

* Since mid-2005, these employees have been seeking low cost sedimentations. It was chiefly due to this that the bank was able to surpass the industry with a 78 per cent growing in net net income for the 3rd one-fourth of the current year,2006. After Bank of India introduced Core Banking Software, many employees became excess. The bank redeployed about 1,200 of them into selling.

* This kept the cost of financess under control. Further, the bank had been really selective about recognition enlargement in 2005-06, when progresss grew 23 per cent, lower than the industry norm. At a imperativeness conference, BOI ‘s Chairman and Managing Director, Mr M Balachandran, said that current history sedimentations grew 32 per cent during the one-fourth.

Punjab National Bank of India

Punjab National Bank of India, the first Indian bank started merely with Indian capital, was nationalized in July 1969 and now the bank has become a front-line banking establishment in India with 4525 Offices including 432 Extension Counters. The corporate office of the bank is at new Delhi. Punjab National Bank of India has set up representative offices at Alm Kazakhistan Shanghai and in London and a full fledged Branch in Afghanistan

Activities:

O Current Account – PNB Smart Roamer, PNB Vaibhav, PNB Gaurav

O Fixed Deposit Schemes – Mahabachat Schemes, Spectrum Fixed Deposit Scheme, Anupam Account, Multi Benefit Deposit Scheme.

O Credit Schemes – PNB Flexible Housing Loan, Car Finanace, Personal Loan.

O Social Banking – Krishi Card, PNB Farmers Welfare Trust, Mahila Udyam Nidhi Scheme

O Corporate Banking – EXIM finance, Gold Card strategy for exporters.

O Business Sector – PNB Vikas Udhami, PNB Karigar recognition card, PNB Kushal Udhami, PNB Pragati Udhami.

O Savings Fund Account – PNB Prudent Sweep, Total Freedom Salary Account, PNB Vidyarthi SF Account, PNB Mitra SF Account.

Performance:

The entire disbursal was Rs. 2830.44 crore and the net net income was Rs.237.70 crore.The entire income of the Punjab National Bank of India as recorded in the one-fourth stoping 31st March 2007 was Rs. 3712.79 crore as compared to Rs. 2926.93 crore on 31st March 2006.

The Punjab National Bank of India has launched the construct of “ Any Time, Any Where Banking ” through the debut of Centralized Banking Solution and has late introduced On line Payment Facility for railroad reserve through IRCTC Payment Gateway Project and On line Utility Bill Payment Services, leting Internet Banking history holders to do their payments anytime from anyplace. Another measure taken by Punjab National Bank of India is the launch of its ATM- cum- Debit card.

Private Banks in India

Initially all the Bankss in India were private Bankss, which were founded in the pre-independence epoch to provide to the banking demands of the people. In 1955, after the declaration of first-five twelvemonth program, Imperial Bank of India was later transformed into State Bank of India. In 1921, three major Bankss i.e. Banks of Bengal, Bank of Bombay, and Bank of Madras, merged to organize Imperial Bank of India. In 1935, the Reserve Bank of India was established and it took over the cardinal banking duties from the Imperial Bank of India, reassigning commercial banking maps wholly to IBI. Allahabad Bank, Canara Bank, Central Bank of India, etc. Therefore, public sector Bankss revived to take up taking function in the banking construction. In 1980, the GOI nationalized 6 more commercial Bankss, with control over 91 % of banking concern of India.

Following this, occurred the nationalisation of major Bankss in India on 19 July 1969. The Government of India issued an regulation and nationalized the 14 largest commercial Bankss of India, including Punjab National Bank. In 1994, the Reserve Bank Of India issued a policy of liberalisation to licence limited figure of private Bankss, which came to be known as New Generation tech-savvy Bankss. Global Trust Bank was, therefore, the first private bank after liberalisation ; it was subsequently amalgamated with Oriental Bank of Commerce. Then Housing Development Finance Corporation Limited became the first to have an ‘in rule ‘ blessing from the Reserve Bank of India to put up a bank in the private sector. At present, Private Banks in India include taking Bankss like ICICI Banks, ING Vysya Bank, Jammu & A ; Kashmir Bank, Karnataka Bank, Kotak Mahindra Bank, SBI Commercial and International Bank, etc. Undoubtedly, being tech-savvy and full of expertness, private Bankss have played a major function in the development of Indian banking industry. They have made banking more efficient and client friendly. In the procedure they have jolted public sector Bankss out of complacence and forced them to go more competitory.

Major private Bankss in India are:

Bank of Rajasthan

A prima private sector bank, the Bank of Rajasthan was founded on the auspicious twenty-four hours of Akshya Tritiya on May 8, 1943, at Udaipur. Shri Rai Bahadur P.C. Chatterji, the so finance curate of the former Mewar Government, extensively contributed towards the constitution of the Bank.

Catholic Syrian Bank

With the Swadeshi Movement of early twentieth century as its base, Catholic Syrian Bank was incorporated on 26th November 1920, in the Thrissur territory of Kerala. The bank commenced its operations on 1st January 1921, with an authorised capital of Rs. 5 hundred thousand and a paid up capital of Rs. 45270.

Dhanalakshmi Bank Limited

The foundation of Dhanalakshmi Bank Limited was laid down on 14th November 1927in Kerala. A group of advanced enterprisers had started the bank with a capital of Rs.11,000 and merely 7 employees.

Federal Bank

Federal Bank Limited was founded as Travancore Federal Bank Limited in the twelvemonth 1931, with an authorised capital of Rs. 5000. It was established at Nedumpuram, a topographic point near Tiruvalla, in Central Travancore ( a princely province subsequently merged into Kerala ) , under Travancore Company ‘s Act 1956.

HDFC bank

Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd, was established in the twelvemonth 1994, as a portion of the liberalisation of the Indian Banking Industry by Reserve Bank of India. It was one of the first Bankss to have an ‘in rule ‘ blessing from RBI, for puting up a bank in the private sector.

ICICI Bank

ICICI Bank started as a entirely owned subordinate of ICICI Limited, an Indian fiscal establishment, in 1994. Four old ages subsequently, when the company offered ICICI Bank ‘s portions to the populace, ICICI ‘s shareholding was reduced to 46 % . In the twelvemonth 2000, ICICI Bank offered made an equity offering in the signifier of ADRs on the New York Stock Exchange.

ING Vysya Bank

ING Vysya Bank Ltd came into being in October 2002, when erstwhile Vysya Bank Ltd was merged with ING, a planetary fiscal human dynamo self-praise of Dutch beginning. Vysya Bank Ltd, one of initial Bankss to be set up in the private sector of India

Jammu and Kashmir Bank

The beginning of Jammu and Kashmir Bank Limited, more normally referred to as J & A ; K Bank, can be traced back to the twelvemonth 1938, when it was established as the first state-owned bank in India. The bank was incorporated on 1st October 1938 and it was in more exactly on 4th July 1939. It commenced its concern, in Kashmir ( India ) .

Karnataka Bank

Karnataka Bank Limited is a taking private sector bank in India. It was incorporated on 18th February 1924 at Mangalore, a town located in the Kannada territory of Karnataka. The bank emerged as a major participant during the freedom motion of twentieth Century India.

Karur Vysya Bank

The Karur Vysya Bank Limited normally known as KVB was set up by Late Shri M.A. Venkatarama Chettiar and the Late Shri Athi Krishna Chettiar, the two great visionaries in 1916 in Karur, a fabric town in the Tamil Nadu province of India.

Kotak Mahindra Bank

Kotak Mahindra Bank is one of India ‘s prima fiscal private banking establishments. It offers banking solutions that covers about every domain of life. Some of its fiscal services include commercial banking, stock broking, common financess, life insurance and investing banking.

SBI Commercial and International Bank

SBI Commercial and International Bank, SBI Commercial is a wholly owned private aide of India ‘s biggest banking and fiscal services set up, the State Bank of India. Established in 1995 to endorse SBI ‘s corporate and international banking services, the SBI Commercial and International Bank is the lone bank in India to be been awarded ISO-9002 quality systems enfranchisement for the Bank as a whole

UTI Bank

Axis Bank was formed as UTI when it was incorporated in 1994 when Government of India allowed private participants in the banking sector. The bank was sponsored together by the decision maker of the specified project of the Unit Trust of India, Life Insurance Corporation of India ( LIC ) and General Insurance Corporation ltd.

Yes Bank

Yes Bank is one of the top most private Indian Bankss. Awarded by the lone Greenfield licence award by RBI in last 14 old ages, this bank is established and run by Rana Kapoor and Ashok Kapur with the fiscal support of Rabobank Nederland, the universe ‘s individual AAA rated private Bank.

Citibank India

Citibank India, since 1902, is at present one of the taking consumer finance loaner supplying its clients best merchandises and services.

Activities:

The Citibank India offers a varied scope of fiscal aid to its clients like:

O Banking – Suvidha Account, Debit Cards, Citibanking, Citi Gold Wealth Management

O Citi Business – Current Account, Loans, CitiBusiness Card

O NRI Services – Rupee Checking Account, India Deposits

O Online Services – Internet Banking, Bill Payment, Statement on E-mail, E-Commerce, Citi Alert

O Credit Cards – Citibank Gold Card, Jet Airways Citibank Gold Card, Hutch Citibank Card, Indian Oil Citibank Card, Shoppers ‘ Stop Citibank Card, MTV Citibank Card, Citibank Silver International Card, CRY Card, WWF Card, Times Card, Citibank Cricket Visa Card

O Deposit Accounts – Savings Accounts, Current Accounts, and Term sedimentations.

O Loans – Personal Loans, Home Loans, Loan against belongings, Auto Loan, Ready Credit

O Investments – Common Fundss, Demat.

O Insurance – Life Insurance Solutions, Credit Insurance, Health Insurance, Travel Insurance.

Performance:

There is a relationship director who guides the clients on the investing issues along with foreign exchange, dealing petitions and trade services. Citibank India by establishing the CitiBusiness Card have for the first clip offered the clients a huge scope of benefits, services, concern intelligence, trades and price reductions that are by and large at the disposal of big corporations so far. . Furthermore without paying any excess charges the clients are assured of first transactional convenience like wage orders, demand bill of exchanges and payable-at-par checks.There is a relationship director who guides the clients on the investing issues along with foreign exchange, dealing petitions and trade services

WAYS OF PRIVATIZATION

cubic decimeter DISINVESTMENT

cubic decimeter Catching

cubic decimeter FRANCHISING

cubic decimeter PREMITING PRIVATE SECTOR ENTER INTO PSU RESERVED AREA

cubic decimeter LIQUIDATION

cubic decimeter LEASING

NEWS RELATED BANK

Banking Sector in Budget 2008

The Union Budget of India for the twelvemonth 2008-2009 was announced by the Indian Finance Minister, Mr. P Chidambaram, on 29th February 2008. The policies and enterprises taken in the Union Budget of India 2008-2009 on the Indian Banking sector were in tandem with the demands of the Indian economic system.

Small and fringy husbandmans have been relieved of all farm loans, disbursed till March 2007 and besides all loans, which are due till December 2007 and was unpaid till February 2008. These farm loan releases would be facilitated by all the concerned Public Sector Banks and Regional Rural Banks of India. A sum of Rs 60,000 crores would be waived-off under such strategy. The colony of these loan-waivers will be offered through particular type of strategy. Further, the Public Sector Banks and Regional Rural Banks of India were besides suggested, to convey within their crease, a lower limit of 250 rural family histories at every subdivision every twelvemonth.

The Indira Awas Yojana was brought under the scope of Public Sector Banks. Loan limit up to Rs 20,000 per unit at 4 % involvement was fixed under differential rate of involvement ( DRI ) strategy. The Finance Minister besides advised the Indian PSU Banks to open 288 subdivisions in minority territories of India. Further, he besides asked the Indian banking industry to encompass entire fiscal inclusion. In another landmark determination, the Finance Minister, Mr. P. Chidambaram said that the Ex-banking military mans in India would be offered employment chances in the banking sector.

Another major proclamation was that, the much talked-about ‘Banking Cash Transaction Tax ( BCTT ) ‘ would be withdrawn from the fiscal twelvemonth 2009-2010.

Experts believe the impact of the determinations and policies taken during the Union Budget of India 2008-2009 on the Indian Banking sector would be assorted. It is expected that the Indian PSU Bankss will confront force per unit area on their cyberspace involvement borders due to the waiving-off of agricultural loans. Further, the cumulative cost that will be incurred for opening up of new Regional Rural Banks in India may well increase the operating cost for the Bankss. The inclusion of the Indira Awas Yojana houses under the differential rate of involvement strategy and at 4 % involvement will increase the proportion of sub-PLR loaning for the concerned Bankss.

The major Public Sector Banks of India like the State Bank of India, Bank of Baroda, Punjab National Bank may see their net involvement borders shriveling till the subsidy for release of agricultural loans is being wholly released. Furthermore, experts are disbelieving about the long term benefit of such agricultural loan release as offered through the Union Budget of India 2008-2009.

The Development Credit Bank, a private sector loaner has launched its recognition card concern called ‘DCB Advantage Card ‘ on 4th March 2008. The Bank has tied up with ICICI Bank in order to pull out the best accomplishments out of it every bit good as to use its experience for a successful executing of the undertaking. The recognition card concern launched by the Development Credit Bank is available to all its possible clients all across India. The recognition card holders of DCB will bask a broad spectrum of benefits. The recognition card market in India is a flourishing sector now and it is besides expected to witness a singular rise in the recent hereafter. Development Credit Bank presently comprises around 4.5 lakh card holders and around 50,000 clients are expected to fall in in shortly.

Sachin Khandelwal, the caput of cards merchandise group of ICICI Bank, who looks after the recognition card services of Development Credit bank has stated that bulk of the already existing card holders have increased the recognition bound of their cards which led to a significant addition in the involvement rate. This has resulted in the geting of installment payments of dues by the clients which charges an involvement rate of merely 20 % . The Advantage Credit Card has non merely worked as a value proposition for the recognition card section of DCB but is besides a cardinal driver for the growing scheme of the bank.

The Advantage Credit Card offers a broad assortment of benefits such as lifetime cogency, fast add-on of wages points, perfectly zero processing fees for the first three months, no charge for balance transportation, handiness of EMI on phone calls and offerings of attractive and beneficiary strategies and promos sporadically. The merchandises and services offered by the bank in association with the ICICI bank have been designed in conformity with the gustatory sensation and demands of possible clients. The launching of Advantage Credit Card by Development Credit Bank is a immense hit and has besides played the function of accelerator in rushing up the growing rate of Development Credit Bank in the market. DCB has set up about 80 branch units and extension counters along with 18,000 ATMs spread across 10 provinces and two Union districts in India.

The Bank gained Rs.459.3 million as net net income after revenue enhancement for the nine month period of Fiscal Year 2007-08 as against Rs.77.8 million during the same clip in the old fiscal twelvemonth. On 3rd March, 2008, the portions of the Development Credit Bank fell by 5.43 % , to Rs.100.2, which is a bead of Rs.5.75. The entire sum of portions sold on the same twenty-four hours at Bombay Stock Exchange was 235,894.

ICICI Bank hit by Global Subprime Crisis

The ICICI Bank had been hit by the International subprime mortgage crisis. ICICI Bank has lost about US $ 264, till the terminal of January 2008. As per the Bankss statement, the loss was non due to investings in the US subprime loan market, but due to the autumn in the value of securities in the planetary market. The rise in the international involvement rates due to the subprime mortgage crisis was the chief cause for the autumn in the value of securities in the planetary market, which forced ICICI bank to do up the difference from its turnover.

The loss, though, is bad, as the bank has non sold out these securities. The bank holds securities deserving face value of US $ 1.6 billion and one of its divisions holds securities worth US $ 0.5 billion. ICICI bank is the first Indian Bank to describe such sort of loss. However, other public sector Bankss are expected to describe similar losingss in the recent hereafter. The bank expects that the loss due to the subprime crisis would take off about 9 % of the annual turnover. The chief cause of the subprime crisis is expected to be the immense sum of loans given to the domestic borrowers in United States with bad recognition history, i.e. low refund power called subprime borrowers in United States. These borrowers were unable to refund the loans due to the lag of the US economic system, which affected the histories of these Bankss, thereby get downing the concatenation reaction of the autumn in the value of the securities in the international market.

As per the estimated losingss, Bankss like the Merrill Lynch, Citibank and Deutsche Bank have lost out about US $ 180 billion due to the subprime mortgage crisis.

On the 4th of March, 2008, the ICICI Bank stock fell more than 5 % and was closed at Rs 971 on the Bombay Stock Exchange. Stock of several other Bankss besides experienced a autumn. Canara Bank fell about 6.43 % and closed at Rs 239, PNB fell approximately 5.36 % and closed at Rs 516, Bank of India fell approximately 5.88 % and closed at Rs 309 and SBI fell about 2.57 % and closed at Rs 1,873. The index refering to the banking portions fell at a rate of 4 % with the outlook that several other Bankss would denote their losingss due to the planetary subprime crisis.

Analysis

Analyzing the collected information is really indispensable for geting at any decision. During the procedure of analysis we found out that many bank do acquire influenced by sbi and repute of bank, they consider this factor a batch while make up one’s minding the bank. I analyze that the private bank give better service than public bank. I besides see that in tube and metropolis the figure of bank is really high comparison to little metropolis and town. In public sector bank SBI major portion in the market and ICIC is major participant. Public sector bank non give good installation and they besides give low involvement rate.any one went to public sector bank for loan they give tonss of paperss to make full and besides take more clip than private bank

KVB ( Karur Vysya Bank ) It has the highest involvement rate for FDs 9.25 % ( 2-3 old ages ) and 9.75 for senior citizens. normally, many regional Bankss gives 0.5 % more involvement rate than other Bankss like HDFC and ICICI. But, these regional Bankss are non popular. illustration KVB. Some other Bankss like co-operative Bankss gives 10 % ( 1 % more than industry norm ) . But, KVB is around 100 old ages old and one of the fastest turning regional Bankss in south India.

On the 4th of March, 2008, the ICICI Bank stock fell more than 5 % and was closed at Rs 971 on the Bombay Stock Exchange. Stock of several other Bankss besides experienced a autumn. Canara Bank fell about 6.43 % and closed at Rs 239, PNB fell approximately 5.36 % and closed at Rs 516, Bank of India fell approximately 5.88 % and closed at Rs 309 and SBI fell about 2.57 % and closed at Rs 1,873. The index refering to the banking portions fell at a rate of 4 % with the outlook that several other Bankss would denote their losingss due to the planetary subprime crisis.

The Bank gained Rs.459.3 million as net net income after revenue enhancement for the nine month period of Fiscal Year 2007-08 as against Rs.77.8 million during the same clip in the old fiscal twelvemonth. On 3rd March, 2008, the portions of the Development Credit Bank fell by 5.43 % , to Rs.100.2, which is a bead of Rs.5.75. The entire sum of portions sold on the same twenty-four hours at Bombay Stock Exchange was 235,894.

REFERANCE

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