1. INDIAN BANKING SYSTEM Submitted To:- Submitted By:- Mr. Nitin Kumar Jain Pujil Khanna Pankaj Tiwari Avinash Jeswani Robin Choudhary

2. PHASE I:- The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks . PHASE II :- Nationalisation of Imperial Bank of India with extensive banking facilities on a large scale specially in rural and semi-urban areas. It formed State Bank of India to act as the principal agent of RBI and to handle banking transactions of the Union and State Governments all over the country. Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on 19th July, 1969, major process of nationalisation was carried out. 14 major commercial banks in the country was nationalised . PHASE III:- This phase has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, under the chairmanship of M Narasimhama, a committee was set up by his name which worked for the liberalisation of banking practices.

5. PRE-GLOBALIZED SCENARIO OF SERVICE CULTURE IN THE INDIAN BANKS SERVICE CULTURE WAS EXTREMELY DEMOTIVATED & NON INTERESTED EMPLOYER& EMPLOYEE. NON COMPETETIVE ATTITUDE. PRODUCT FOCUSED & NOT CUSTOMERSERVICE FOCUSED. CUSTOMER UNFRIENDLY FORMALIZED

9. Flower of banking service Mobile & Internet banking ATM Network Good Waiting room Promotional discounts Low interest rates Intro. Of new schemes Change in Product line Consultancy service Financial service

11. Innovation In Banking Product. Core Product Basic Product Expected Product Augmented Product Potential Product The basic necessity to use banking services in order to handle finance more efficiently Safety of deposits Loanable funds etc. Timely service Long banking hours. Low interest Rate. Good waiting rooms friendly employees Welcome note. Occasional greeting at home Surprise gifts.

12. Additional Banking Services Merchant Banking Loan Syndication. Mutual Fund Factoring. Forfeiting. Venture Capital.

13. Major drivers for Banking Sector, world wide

30. Bank Lending as percentage of Deposits (2004) Country Lending as percent of Deposits China 130 UK 114 Malaysia 101 USA 92 India 61

31. Raghuram Rajan on Rewriting the Rules for India's Banks Rajan said he sees the challenges facing India's banking industry against the backdrop of three forces, or "tensions," in its socio-economic setting. The first tension is between the "haves" and the "have-nots." This is not so much an urban-rural divide, he noted, but one that plays out as high income vs. low income; well managed states vs. poorly managed states; good institutions vs. bad institutions; and upper castes vs. lower castes. "There are lots of cleavages which reflect this [tension], but fundamentally it's an economic divide," he said.

32. Continued The second tension "is between the private sector and the public sector, or between the markets and the state," Rajan continued. He pointed out that a common reading of this "clash" is that it represents the rich-poor divide, where the markets are seen as favoring the rich and the state as fighting on behalf of the poor. "This is where the wires get crossed in India," he said. "It is not necessarily [true] that currently or going forward, the state is doing the right thing by the poor. In fact, what is happening is the state is treating the poor miserably."

33. Continued Rajan said the third clash is one "between the foreign and the domestic sectors," and that this is compounded by the first two tensions. “