Name: Anto Libin Roll no: 8202 Project topic: Indian Banking structure Project guide: Prof.

Shirley Pillai -----------------------------------------------------------------------------------------

Indian Banking Structure

Executive summary India has a well developed Banking system. The banking industry originated in India in the 18th century and since then it has undergone significant number of changes. The commercial banking industry in India over the past few decades has been revolutionized by a number of factors such as independence, nationalization, deregulation, rise of the Internet, etc. The commercial banking structure in India consists of Scheduled Banks and Unscheduled Banks. In the past the banks did not find any attraction in the Indian economy because of the low level of economic activities and little business prospects. Today we find positive changes in the National business development policy. Earlier, the money lenders had a strong hold over the rural population which resulted in exploitation of small and marginal savers. The private sector banks failed in serving the society. This resulted in the nationalization of 14 commercial banks in 1969. Nationalization of commercial banks paved ways for the development of Indian economy and channelized financial resources for the up liftment of weaker sections of the society. The passage of financial modernization legislation by Congress in 1999 removed barriers, allowing banks to expand product offerings, while the potential of the Internet as a sales, marketing and delivery tool, widened the avenues to sell and deliver these products. The main products of the commercial banking industry-insurance, securities, mortgages,

mutual funds and consumer credit-have all benefited from these changes. This report will examine the extent to which increased product sales have influenced overall bank assets and how commercial banks' increased market share in each of these products areas over the next five years will raise overall bank income and assets. Currently (2011), banking industry in India is generally fairly mature in terms of supply, product range and reach-even though reaches in rural India still remains a challenge for the private sector and foreign banks. In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rateand this has mostly been true. With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong. One may also expect mergers and acquisitions, takeovers, and asset sales.

OBJECTIVES OF THE STUDY The objectives of project are as follows: To find out the earlier banking structure that prevailed in India. To assess the impact of all these factors on the banking structure. To draw a contrast between the old and the new Indian banking structure. To determine the various services offered by banks earlier and currently To draw conclusions of the impact of the changes in banking sector.

RESEARCH METHODOLOGY

A. Primary:
The method to be followed in obtaining the primary data is through a detailed Questionnaire. B. Secondary: The method to be followed in obtaining primary data is through the internet, surfing through various e-books related to the topic and books from the college library.

BIBLIOGRAPHY

1. A. Prasad; Saibal Ghosh (1 July 2005). Competition in Indian Banking. International Monetary Fund. p. 4. 2. D. K. Murthy; K. R. Venugopal (1 January 2006). Indian Financial System. I. K. International Pvt Ltd. p. 29.