growth_in_indian_banking_sector.docx

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Project

On

GGROWTHROWTH ININ IINDIANNDIAN BBANKINGANKING

SSECTORECTOR

Submitted to: Submitted by:

Miss Rashmi Gupta Surabhi Chitransh



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!A! E"onomi"s #$na% year&

Contents Introduction

o Liberalization

Research Methodology

Structure of Indian Banking Sector

o Classification of Banking Industry in India

o Business Division

o Services Provided by Banking Organizations

eneral Banking Scenarioo Custo!er Res"onse on Current Scenario

o #do"tion of $echnology

ro%th of Indian Banking Sector

Ste"s $aken by Reserve Bank of India to Strengthen the

Banking Infrastructure

Challenges &aced by Indian Banking Industry

S'(S$IO)S

CO)CL'SIO)

http://en.wikipedia.org/wiki/Reserve_Bank_of_India




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Introduction*+Today, we are having a fairly well developed banking system with different classes of

banks – public sector banks, foreign banks, private sector banks – both old and new generation,regional rural banks and co-operative banks with the Reserve Bank of India as the fountain Head

of the systemThe banking industry has e!perienced a significant transformation in the last few

decades "ince the eighties, banks have increased the scope and scale of their activities andseveral banks have become very large institutions with a presence in multiple regions of thecountry #ne of the ma$or ob$ectives of banking sector development was to encourageoperational self-sufficiency, fle!ibility and competition in the system and to increase the bankingstandards in India to the international best practices Indian banking sector is like fuelprovider to the Indian econom and is contributing so much to!ards overallgro!th of the econom" #his sector gets a completel di$erent and advancedlook in present times"

Some people think that development in banking means canvassing of deposits in a big

ways and showing rise in deposit figure in each branch against targets fixed. But the concept of “Development” in banking is a multi-dimensional concept. t is not merely the development of deposits! but includes all aspects of banking function. t is development of branches at the micro-

level within the parameter of corporate ob"ectives for micro-level growth.

Development of banking is a #uestion of developing the economy of the place bydeveloping the customers served by the branches by catering to their credit needs for productive

ventures and by mopping up their surplus savings to be utili$ed in the same place or elsewhere.

n other words! it is developing the people! place and the branch.The Indian banking industry has its foundations in the %&th century, and has had a varied

evolutionary e!perience since then The initial banks in India were primarily traders' banksengaged only in financing activities The first banks were Bank of Hindustan (%))*-%&+ and

The .eneral Bank of India, established %)&/ and since defunct Banking industry in the pre-independence era developed with the 0residency Banks (Bank of Bengal, Bank of Bombay, andBank of 1adras, which were transformed into the Imperial Bank of India and subse2uently intothe "tate Bank of India The initial days of the industry saw a ma$ority private ownership and ahighly volatile work environment 1a$or strides towards public ownership and accountabilitywere made with nationali3ation in %/ and %&* which transformed the face of banking inIndia The industry in recent times has recogni3ed the importance of private and foreign playersin a competitive scenario and has moved towards greater liberali3ation

In the process of growth, immense developments have been made in terms of theregulations governing it, the ownership structure, products and services offered and thetechnology deployed The entire evolution can be classified into four distinct phases

• 0hase I- 0re-4ationali3ation 0hase (prior to %55• 0hase II- 6ra of 4ationali3ation and 7onsolidation (%55-%*

• 0hase III- Introduction of Indian 8inancial 9 Banking "ector Reforms and 0artial

:iberali3ation (%*-+**;

• 0hase I<- 0eriod of Increased :iberali3ation (+**; onwards

=t the time of first phase the growth of banking sector was very slow Between %%> and%;& there were appro!imately %%** small banks in India To streamline the functioning and

http://en.wikipedia.org/wiki/Bank_of_Bengal


http://en.wikipedia.org/wiki/Bank_of_Bombay

http://en.wikipedia.org/wiki/Bank_of_Madras


http://en.wikipedia.org/wiki/Bank_of_Bombay

http://en.wikipedia.org/wiki/Bank_of_Madras



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activities of commercial banks, the .overnment of India came up with the Banking 7ompanies=ct, %; which was later changed to Banking Regulation =ct %; as per amending =ct of %/5 (=ct 4o+> of %/5 Reserve Bank of India was vested with e!tensive powers for thesupervision of banking in India as a 7entral Banking =uthority

=fter independence, .overnment has taken most important steps in regard of Indian

Banking "ector reforms In %55, the Imperial Bank of India was nationali3ed and was given thename ?"tate Bank of India?, to act as the principal agent of RBI and to handle bankingtransactions all over the country It was established under "tate Bank of India =ct, %55 "even banks forming subsidiary of "tate Bank of India was nationali3ed in %/* #n %th @uly, %/,ma$or process of nationali3ation was carried out =t the same time %; ma$or Indian commercial banks of the country were nationali3ed In %&*, another si! banks were nationali3ed, and thusraising the number of nationali3ed banks to +* "even more banks were nationali3ed withdeposits over +** 7rores Till the year %&* appro!imately &*A of the banking segment in Indiawas under government's ownership #n the suggestions of 4arsimhan 7ommittee, the BankingRegulation =ct was amended in %> and thus the gates for the new private sector banks wereopened

The following are the ma$or steps taken by the .overnment of India to Regulate Bankinginstitutions in the country-%&'&( )nactment of Banking *egulation +ct.%&,,( ationali$ation of State Bank of ndia.

%&,&( ationali$ation of SB subsidiaries.

%&%( nsurance cover extended to deposits.

%&&( ationali$ation of %' ma"or Banks.%&/%( 0reation of credit guarantee corporation.

%&/,( 0reation of regional rural banks.

%&12( ationali$ation of seven banks with deposits over 322 0rores.

Liberalization:-

In the early %*s, the then )arsi!ha Rao govern!ent embarked on a policy of liberali3ation, licensing a small number of private banks These came to be known as New

Generation tech-savvy banks and included .lobal Trust Bank (the first of such new generation banks to be set up, which later amalgamated with Oriental Bank of ,- Co!!erce. #/is Bank

0earlier as '$I Bank1. ICICI Bank and 2D&C Bank This move along with the rapid growthin the economy of India revolutioni3ed the banking sector in India which has seen rapid growthwith strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks The ne!t stage for the Indian banking has been setup with the proposedrela!ation in the norms for 8oreign Cirect Investment, where all 8oreign Investors in banks may be given voting rights which could e!ceed the present cap of %*A, at present it has gone up to;A with some restrictions

The new policy shook the banking sector in India completely Bankers, till this time, wereused to the '--' method 4Borrow at '56 7end at 56 8o home at '9 of functioning The newwave ushered in a modern outlook and tech-savvy methods of working for the traditional banks=ll this led to the retail boom in India 0eople not $ust demanded more from their banks but alsoreceived more 7urrently, banking in India is generally fairly mature in terms of supply, productrange and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks In terms of 2uality of assets and capital ade2uacy, Indian banks are



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considered to have clean, strong and transparent balance sheets as compared to other banks incomparable economies in its region The Reserve Bank of India is an autonomous body, withminimal pressure from the government Dith the growth in the Indian economy, the demand for banking services, especially retail banking, mortgages and investment services are e!pected to bestrong

BR#)C2 (3P#)SIO) SI)C( 4565 $O 4554

7ear $otal )o8 of

Branches

Rural Branches Se!i+urban

Branches

%/ &+/+ %&>> >>;+

%&* >+;% %5%*5 &%++

%% /*,++* >5+*/ %%,>;; Source: RBI 045591* Banking Statistics. 455,85:8

PROR(SS O& COMM(RCI#L B#);I) I) I)DI#* 45:4+54Indictor<7ear 45:4 4565 459= 4554

48 4umbers of

7ommercial Banks

5// & +) +)/

0a1"cheduled Banks + )> +)5 +)+

0b1 4on "cheduled

Banks

;); %/ ; ;

,8 4umber of #ffices ;%5% &+/+ 5>,&;* /*,++*

>8Total deposits of

"cheduled Banks (=s

7rores

*& ;/;/ %*),>;5 +*%,%

-8 Total 7redit of

"cheduled Banks (=s7rores

5;) >5 /;,+%> %+%,&&/5

Source: #BI 045591+Banking Statistics. 45=,85:8

De"osit Mobilization and Credit (/"ansion

)ote*+ n :arch 322! the *eserve Bank of ndia allowed ;arburg <incus to increase its stake

in =otak :ahindra Bank 4a private sector bank9 to %25. This is the first time an investor has been allowed to hold more than 5A in a private sector bank since the RBI announced norms in+**5 that any stake e!ceeding 5A in the private sector banks would need to be voted by them



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Research Methodology*+8or this pro$ect analytical, descriptive and comparative methodology has been adopted

Reliance has been placed on secondary sources like books, $ournals, newspapers and onlinedatabases and on the views of writers in the discipline of 7ompetition law Table, bar diagrams, pie charts have also been used to make the analysis more interesting

Structure of Indian banking sector*+The Indian Banking industry, which is governed by the Banking Regulation =ct of India,

%; can be broadly classified into two ma$or categories, non-scheduled banks and scheduled banks "cheduled banks comprise commercial banks and the co-operative banks In terms of ownership, commercial banks can be further grouped into nationali3ed banks, the "tate Bank of India and its group banks, regional rural banks and private sector banks (the oldE new domesticand foreign These banks have over /),*** branches spread across the country

PC#RDBs* 0rimary 7o-operative =griculture and Rural Cevelopment BanksSC#RDBs* "tate 7o-operative =griculture and Rural Cevelopment Banks



)

Classification of Banking Industry in India*+

Indian banking industry has been divided into two parts, organi3ed and unorgani3edsectors The organi3ed sector consists of Reserve Bank of India, 7ommercial Banks and 7o-operative Banks and "peciali3ed 8inancial Institutions (ICBI, I7I7I, I87 etc The+& unorgani3ed sectors, which is not homogeneous, is largely made up of money lenders and

indigenous bankers=n outline of the Indian Banking structure may be presented as follows-% Reserve banks of India+ Indian "cheduled 7ommercial Banks

a9 State Bank of ndia and its associate banks.

b9 >wenty nationali$ed banks.

c9 *egional rural banks.

d9 ?ther scheduled commercial banks.> 8oreign Banks; 4on-scheduled banks5 7o-operative banks

In the Indian Banking "ystem, 7ooperative banks e!ist side by side with commercial banks and play a supplementary role in providing need-based finance, especially for agriculturaland agriculture-based operations including farming, cattle, milk, hatchery, personal finance etcalong with some small industries and self-employment driven activities

.enerally, co-operative banks are governed by the respective co-operative acts of stategovernments But, since banks began to be regulated by the RBI after % st 1arch %//, these banks are also regulated by the RBI after amendment to the Banking Regulation =ct %;

The commercial banking structure in IndiaS8)o8 )ationalized Banks Old Private Sector

Banks

)e% Private Sector

Banks

&oreign Banks

48 #llahabad Bank Ltd8 Catholic Syrian Bank Ltd8 #/is Bank Ltd8 #bu Dhabi

,8 #ndhra Bank Ltd8 City 'nion Bank Ltd8 Develo"!ent Credit

Bank Ltd8

#!erican (/"ress

>8 Bank of Baroda Ltd8 Dhanalaksh!i Bank Ltd8 2D&C Bank

Ltd8

Bank International

Indonesia

-8 Bank of India Ltd8 &ederal Bank Ltd ICICI Bank Ltd8 Bank of #!erica )#

:8 Bank of Maharashtra

Ltd8

I) ?ysya Bank Ltd8 IndusInd Bank Ltd8 Bank of Ceylon

68 Canara Bank Ltd8 @a!!u and ;ash!ir

Bank Ltd8

;otak Mahindra

Bank

Ltd8

Bank of )ova Scotia

0Scotia Bank1

=8 Central Bank of India

Ltd8

;arnataka Bank Ltd8 7es Bank Ltd8 Bank of $okyo

Mitsubishi '&@

98 Cor"oration Bank Ltd8

;arur ?ysya Bank Ltd8 Barclays Bank PLC

58 Dena Bank Ltd8 Laksh!i ?ilas Bank

Ltd8

B)P Paribas

4A8 IDBI Bank Ltd8 )ainital Bank Ltd8 Calyon Bank

448 Indian Bank Ltd8 Ratnakar Bank Ltd8 China trust Co!!ercial

Bank

4,8 Indian Overseas

Bank Ltd8

SBI Co!!ercial and

International Bank Ltd8

Citibank )8#8



B usin essC ivisi on

R etail Bank ing

#therB ank ing Businesses

Tr ea sury # per ati ons

Dh olesal eBan k ing

*

4>8 Oriental Bank of

Co!!erce Ltd8

South Indian Bank Ltd8 DBS Bank

4-8 Punab and Sind

Bank Ltd8

$a!ilnad Mercantile

Bank Ltd8

Deutsche Bank #

4:8 Punab )ational Bank

Ltd8

2SBC

468 Syndicate Bank Ltd8 @PMorgan ChaseBank

4=8 'CO Bank Ltd8 ;rung $hai Bank

498 'nion Bank of India

Ltd8

Mashre Bank "sc

458 'nited Bank of India

Ltd8

Mizuho Cor"orate

Bank

,A8 ?iaya Bank Ltd8 Royal Bank of

Scotland

,48 State Bank of Bikaner

and @ai"ur Ltd8

Shinhan Bank

,,8 State Bank of

2yderabad Ltd8

Socit nrale

,>8 State Bank of India

Ltd8

Sonali Bank

,-8 State Bank of Mysore

Ltd8

Standard Chartered

Bank

,:8 State Bank of

Patiala Ltd8

State Bank of Mauritius

,68 State Bank of

$ravancore

'BS #

,=8 'nited Overseas

Bank Ltd8

Business Division*+

The entire range of banking operations are segmented into four broad heads- retail banking businesses, wholesale banking businesses, treasury operations and other bankingactivities Banks have dedicated business units and branches for retail banking, wholesale banking (divided again into large corporate, mid corporate etc



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Retail banking*+

It includes e!posures to individuals or small businesses Retail banking activitiesare identified based on four criteria of orientation. granularity. "roduct criterion and

lo% value of individual e/"osures In essence, these 2ualifiers imply that retaile!posures should be to individuals or small businesses (whose annual turnover is limited

to Rs *5* billion Retail banking e!posures to one entity is limited to the e!tent of *+A of the total retail portfolio of the bank or the absolute limit of Rs 5* millionRetail banking products on the liability side includes all types of deposit accounts andmortgages and loans (personal, housing, educational etc on the assets side of banks Italso includes other ancillary products and services like credit cards, demat accounts etc

The ma$or component of the retail portfolio of banks is housing loans, followed by auto loans 1ost banks have a significant portion of their business contributed byretail banking activities The largest players in retail banking in India are I7I7I Bank,"BI, 04B, B#I, HC87 and 7anara Bank

=mong the large banks, I7I7I bank is a ma$or player in the retail banking space8oreign banks have had a somewhat restricted retail portfolio till recently However,

they are fast e!panding in this business segment The retail banking industry is likely tosee a high competition scenario in the near future Eholesale banking*+

Dholesale banking includes high ticket e!posures primarily to corporate Internal processes of most banks classify wholesale banking into mid corporate and largecorporate according to the si3e of e!posure to the clients = large portion of wholesale banking clients also account for off balance sheet businesses <arious forms of financing, like pro$ect finance, leasing finance, finance for working capital, term financeetc form part of wholesale banking transactions "yndication services and merchant banking services are also provided to wholesale clients in addition

Dholesale banking is also a well diversified banking vertical 1ost banks have a

presence in wholesale banking But this vertical is largely dominated by large Indian banks Dhile a large portion of the business of foreign banks comes from wholesale banking, their market share is still smaller than that of the larger Indian banks =mongthe players with the largest footprint in the wholesale banking space are "BI, I7I7IBank, ICBI Bank, 7anara Bank, Bank of India, 0un$ab 4ational Bank, 7entral Bank of India and Bank of Baroda

$reasury O"erations*+

Treasury operations include investments in debt market (sovereign andcorporate, e2uity market, mutual funds, derivatives, and trading and 8ore! operationsThese functions can be proprietary activities, or can be undertaken on customer'saccount Treasury operations are important for managing the funding of the bank =part

from core banking activities, treasury income is a significant component of the earningsof banks Treasury involves the front office (dealing room, mid office (risk managementincluding independent reporting to the asset liability committee and back office(settlement of deals e!ecuted, statutory funds management etc

Other Banking Businesses*+

This is considered as a residual category which includes all those businesses of banks that do not fall under any of the aforesaid categories This category includes para



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banking activities like hire purchase activities, leasing business, merchant banking,factoring activities, syndication services etc

Services Provided By Banking Organizations*+

Banking Regulation =ct in India, %; defines banking as F=cceptingG for the purpose of lending or investment of deposits of money from the public, repayable on demand and withdrawable by che2ues, drafts, orders etc as per the above definition a bank essentially performs thefollowing functions-

=ccepting Ceposits or savings functions from customers or public by providing bank account, current account, fi!ed deposit account, recurring accounts etc The payment transactions like lending money to the public Bank provides an effectivecredit delivery system for loan able transactions 0rovide the facility of transferring of money from one place to another place 8or performing this operation, bank issues demand drafts, banker's che2ues, money ordersetc for transferring the money Bank also provides the facility of Telegraphic transfer or

tele- cash orders for 2uick transfer of money = bank performs a trustworthy business for various purposes = bank also provides the safe custody facility to the money and valuables of the general public Bank offers various types of deposit schemes for security of money 8or keepingvaluables bank provides locker facility The lockers are small compartments with duallocking system built into strong cupboards These are stored in the bank's strong roomand are fully secured Banks act on behalf of the .ovt to accept its ta! and non-ta! receipt 1ost of thegovernment disbursements like pension payments and ta! refunds also take place through banks

There are several types of banks, which differ in the number of services they

provide and the clientele (7ustomers they serve =lthough some of the differences betweenthese types of banks have lessened as they have begun to e!pand the range of products andservices they offer, there are still key distinguishing traits These banks are as follows

Commercial banks, which dominate this industry, offer a full range of services for

individuals, businesses, and governments These banks come in a wide range of si3es,from large global banks to regional and community banks

Global banks are involved in international lending and foreign currency trading, in

addition to the more typical banking services egional banks have numerous branches and automated teller machine (=T1 locations

throughout a multi-state area that provide banking services to individuals Banks have become more oriented toward marketing and sales =s a result, employees need to know

about all types of products and services offered by banks Community banks are based locally and offer more personal attention, which many

individuals and small businesses prefer In recent years, online bankswhich provide allservices entirely over the Internethave entered the market, with some successHowever, many traditional banks have also e!panded to offer online banking, and someformerly Internet-only banks are opting to open branches

Savings banks and savings and loan associations, sometimes called thrift institutions,

are the second largest group of depository institutions They were first established as



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community-based institutions to finance mortgages for people to buy homes and stillcater mostly to the savings and lending needs of individuals

Credit unions are another kind of depository institution 1ost credit unions are formed

by people with a common bond, such as those who work for the same company or belong to the same labour union or church 1embers pool their savings and, when they

need money, they may borrow from the credit union, often at a lower interest rate thanthat demanded by other financial institutions

!ederal eserve banks are .overnment agencies that perform many financial services

for the .overnment Their chief responsibilities are to regulate the banking industry andto help implement our 4ation's monetary policy so our economy can run more efficiently by controlling the 4ation's money supplythe total 2uantity of money in the country,including cash and bank deposits 8or e!ample, during slower periods of economicactivity, the 8ederal Reserve may purchase government securities from commercial banks, giving them more money to lend, thus e!panding the economy 8ederal Reserve banks also perform a variety of services for other banks 8or e!ample, they may makeemergency loans to banks that are short of cash, and clear checks that are drawn and paid

out by different banks The money banks lend, comes primarily from deposits in checking and savings

accounts, certificates of deposit, money market accounts, and other deposit accounts thatconsumers and businesses set up with the bank These deposits often earn interest for their owners, and accounts that offer checking, provide owners with an easy method for making payments safely without using cash Ceposits in many banks are insured by the8ederal Ceposit Insurance 7orporation, which guarantees that depositors will get their money back, up to a stated limit, if a bank should fail

eneral Banking Scenario*+

India is considered among the top economies in the world, with tremendous potential for its banking sector to flourish The last decade witnessed a significant upsurge in transactionsthrough =T1s, as well as internet and mobile banking

The countryJs banking industry looks set for greater transformation Dith the Indian 0arliament passing the Banking :aws (=mendment Bill in +*%+, the landscape of the sector has dulychanged The bill allows the Reserve Bank of India (RBI to make final guidelines on issuingnew licenses, which could lead to a greater number of banks in the country The style of operation is also slowly evolving with the integration of modern technology into the bankingindustry

In the ne!t 5-%* years, the sector is e!pected to create up to two million new $obs driven by theefforts of the RBI and the .overnment of India to e!pand financial services into rural areas Twonew banks have already received licenses from the government, and the RBIJs new norms willoffer incentives to banks to spot bad loans and take necessary recourse to curb the practices of rogue borrowers

• Market si,e-.

http://www.ibef.org/industry/banking-india.aspx





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The si3e of banking assets in India totaled K"L %& trillion in 8M %> and ise!pected to touch K"L +&5 trillion in 8M +5Bank deposits have grown at a compoundannual growth rate (7=.R of +%+ per cent over 8M */-%> In 8M %>, total deposits wereK"L %,+);> billion

The revenue of Indian banks increased from K"L %%& billion to K"L ;/ billion over the period +**%-+*%* 0rofit after ta! also reached K"L %+ billion from K"L %; billion in the period

7redit to housing sector grew at a 7=.R of %%% per cent during the period 8M *&-%>Total banking sector credit is anticipated to grow at a 7=.R of %&% per cent (in terms of I4R to reach K"L +; trillion by +*%) In 8M %;, private sector lenders e!periencedsignificant growth in credit cards and personal loan businesses I7I7I Bank saw %;%/ per cent growth in personal loan disbursement in 8M %;, as per a report by 6mkay.lobal financial "ervices The bank also e!perienced healthy growth of +*& per cent incredit card dues, according to the report =!is BankJs personal loan business also grew ;&

per cent, with its credit card business e!panding by >%% per cent

• Investments-.

HC87 Bank plans to raise Rs %*,*** crore (K"L %// billion while the board of Nolkata-based Knited Bank will seek approval for raising about Rs %,>** crore (K"L +%/;)million by selling shares to increase its capital base

6!port-Import Bank of India (6!im Bank will increase its focus on supporting pro$ecte!ports from India to "outh =sia, =frica and :atin =merica, as "er #r$ %aduvendra #athur&

Chairman and #'& 6!im Bank In +*%+-%>, 6!im Bank had lent support to &5 pro$ect

e!port contracts valued at Rs +;,+55 crore (K"L ;*> billion secured by ;) companies in +>countries

IndusInd Bank will soon begin its asset reconstruction business The private-sector lender plans to partner asset reconstruction companies (=R7s for this venture

@ammu and Nashmir (@9N Bank plans to increase its presence outside India The bank islooking to establish branches in :ondon and Cubai to enhance its relationship with currentcustomers who have business interests in Dest =sia and 6urope @;e have a number of

business relationships in these countries and it makes sense for us to have a presence there!@

as per Mr8 Mushta #h!ad. Chair!an and C(O. @9N Bank

• Government Initiatives-.

The RBI has announced a few measures in its bi-monthly monetary policy on@une >, +*%; which includes an increase in the foreign e!change remittance limit to K"L%+5,*** from the previous limit of K"L )5,***





1%

"tate Bank of India ("BI has announced a one-year rural fellowship programme J"BI Mouthfor India ("BI M8IJ for +*%; to draft the countryJs youth to become change agents in thecountryJs rural regions The programme is for young professionals who are keen to lead thechange for a better India

The RBI has simplified the rules for credit to e!porters 6!porters can now receive long-term advance credit from banks for up to %* years to service their contracts 6!porters haveto have a satisfactory record of three years to receive payments from banks, who can ad$ustthe payments against future e!ports

The RBI has enabled overseas investors, including foreign portfolio investors (80Is andnon-resident Indians (4RIs, to invest up to +/ per cent in insurance and related activitiesthrough the automatic route

• Road /head-.

IndiaJs banking industry could become the fifth largest banking sector globally by+*+* and the third largest by +*+5 These days, banks in India are turning their focus toservicing clients and improving their technology infrastructure, which can help better customer e!perience and give them a competitive edge The popularity of internet and mobile banking is at an all-time high, with customer relationship management (7R1 and datawarehousing anticipated driving the ne!t wave of banking technology in the country

Custo!er Res"onse on Current Scenario*+

The Banking 7odes and "tandards Board of India ()CS)I* periodically undertakes visitsto bank branches to verify implementation at grass root level of the provisions of the Code o+

)ank,s Commitment to Customers. = sample of >*>5 branches of ;& member banks (e!cludingRegional Rural Banks and Krban 7o-operative Banks, a few small 0rivate "ector Banks and8oreign Banks with either little or no retail operations, located in /* cities E towns with 55centrali3ed processing centers' (707s were visited

The findings of branch visits and customer responses have been analy3ed = comparative position of the findings of the last and current survey, where (i improvements and (ii slippageshave been noticed is given below

48 ./ of the customers rated their banks as e0cellent in respect of o"ening o+ counters

in time and availability o+ sta++ at counters during working hours 4including lunch time9!

while 1/ rated their banks as good .,8 23/ of the customers rated their banks as e0cellent in respect of in+ormation

"rovided by o++icials 4 counter sta++ about "roducts 5 services 4including terms A

conditions! fees! charges etc.9! while 16/ rated their banks as good . >8 ?nly 78& 73 and .9/ of the customers rated their banks as e0cellent in respect of

0change o+ soiled 4 cut notes& su""ly o+ coins and on ;uality o+ notes while 1& 3 and

3</ 4respectively9 rated their banks as good .





1&

-8 ?nly .6/ of the customers rated their banks as e0cellent in respect of use o+ the

bank=s Toll-+ree number to seek in+ormation 4 clari+ication and their experience in

terms of "roviding in+ormation and its use+ulness ! while 11/ rated their banks as good .:8 / of the customers rated their banks as e0cellent in respect of Courtesy shown by

o++icials 4 counter sta++ ! while 19/ rated their banks as good .

68 +s regards deposit related issues like updating pass books 4promptness often asked tocome later often delayed9! 23/ of the customers rated their banks as e0cellent ! while

16/ rated them as good. *egarding opening renewal of term deposits 4information

regarding rates of interest! premature withdrawal! etc.9! 22/ of customers felt that the services were e0cellent ! while 37/ rated them as good . +s regards customersC experience

regarding issue of >DS certificate 4promptness and accuracy9 and timely credit of

proceeds of che#ues! .1/ and 22/ 4respectively9 of the customers rated their banks as

e0cellent& while 3./ and 3./ rated their banks as good . =8 ?nly .</ of the customers rated their banks as e0cellent in respect of >orking o+

their bank=s ?T#s ! while 3./ rated their banks as good .

98 ?nly .6/ of the customers rated their banks as e0cellent in respect of ?T# +ailed

transactions and in getting the amount restored or getting com"ensation +or delay& i+ any& in recredit o+ amount ! while 3./ rated their banks as good . 58 ?nly .</ of the customers rated their banks as e0cellent in respect of their

e0"erience when they availed housing loan 4e.g. time taken! formalities whether

cumbersome! charges fees levied9! while 32/ rated their banks as good$

4A8 ?nly .1 and .2/ of the customers rated their banks as e0cellent in respect of their

e0"erience regarding settlement 4 resolution o+ issues 4 com"laint at the branch4promptness! guidance for escalating complaint! etc.9 and in case their issue was not

settled at the branch& their e0"erience regarding the resolution by higher authorities

4time taken! whether settled to your satisfaction9! while 39 and 16/ 4respectively9 rated their banks as good . 448 +s regards the #uery where the customer has o"ened an account with the bank

recently& whether he 4 she was given a co"y o+ the Code o+ )ank=s Commitment to

Customers& only ../ of the customers said es while 68/ the responded negatively. 4,8 <2/ of the customers said es to the #uery whether the bank acce"ted clearing

che;ues across the counter in case the customer so desired& without insisting on the

customer using the dro" bo0 ! while 6/ said o. 4>8 31/ of the customers responded as es regarding the #uery whether the bank "aid

the customer com"ensation in case o+ delayed credit o+ che;ue "roceeds ! whereas 21/

said o.4-8 ?ut of 31%% customers who responded to the #uery whether the banks insisted on the

customer taking insurance only +rom them when they availed loans& only 72/ of the

customers said es to the #uery & whereas 86/ of customers said o.4:8 +s regards the #uery whether the bank con+irmed the cancellation in writing in case

the customers cancelled 4 surrendered their credit card ! only ,13 customers responded

out of these 17/ of the customers responded as es to the #uery! while </ said o. 468 +s regards the #uery pertaining to whether the charges levied by their bank were

reasonable& 88/ responded as es while the remaining 7./ customers responded

negatively.



1'

4=8 +s regards the #uery whether there was "ressure 4 com"ulsion +rom the bank on

customer to buy 4 subscribe to third "arty "roducts like 7ife nsurance! 8eneral

nsurance! :utual Eund Schemes of a company other than the bank but sold by the bank under a tie up arrangement! only %2F customers responded! out of these customers! 73/

said es! while remaining 85 said o.

498 +s regards the #uery whether! in customer,s o"inion& the "roduct sold to him 4 her was a""ro"riate and relevant to him 4 her ! only %F' customers responded! out of whom

<./ said es! while only 8/ responded negatively.

#do"tion of $echnology*+

The IT revolution has had a great impact on the Indian banking system The use of computers has led to the introduction of online banking in India The use of computers in the banking sector in India has increased many folds after the economic liberali3ation of %% as thecountryJs banking sector has been e!posed to the worldJs market

The RBI set up a number of committees to define and co-ordinate banking technologyThese have included

•

In %&; was formed the 7ommittee on 1echani3ation in the Banking Industry (%&; whosechairman was Cr 7 Rangara$an, Ceputy .overnor, Reserve Bank of India The ma$or recommendations of this committee were introducing 1I7R technology in all the banks inthe metropolises in India This provided for the use of standardi3ed che2ue forms andencoders

• In %&&, the RBI set up the 7ommittee on 7omputeri3ation in Banks (%&& headed by Cr 7

Rangara$an It emphasi3ed that settlement operation must be computeri3ed in the clearinghouses of RBI in Bhubaneswar , .uwahati, @aipur , 0atna and Thiruvananthapuram It further stated that there should be 4ational 7learing of inter-city che2ues at Nolkata, 1umbai, Celhi, 7hennai and 1I7R should be made operational It

also focused on computeri3ation of branches and increasing connectivity among branchesthrough computers It also suggested modalities for implementing on-line banking Thecommittee submitted its reports in %& and computeri3ation began from %> with thesettlement between IB= and bank employeesJ associations

• In %;, the 7ommittee on Technology Issues relating to 0ayment systems, 7he2ue

7learing and "ecurities "ettlement in the Banking Industry (%; was set up under 7hairman D " "araf It emphasi3ed 6lectronic 8unds Transfer (68T system, with theB=4N46T communications network as its carrier It also said that 1I7R clearing should beset up in all branches of all those banks with more than %** branches

• In %5, the 7ommittee for proposing :egislation on 6lectronic 8unds Transfer and other

6lectronic 0ayments (%5 again emphasi3ed 68T systemThe total number of automated teller machines (=T1s installed in India by various

banks as of end @une +*%+ is 5,/&/ The new private sector banks in India have the most =T1s,followed by off-site =T1s belonging to "BI and its subsidiaries and then by nationali3ed banksand foreign banks, while on-site is highest for the nationali3ed banks of India

ro%th of Indian banking sector*+

http://en.wikipedia.org/wiki/Online_banking


http://en.wikipedia.org/wiki/MICR

http://en.wikipedia.org/wiki/Clearing_house_(finance)



http://en.wikipedia.org/wiki/Bhubaneshwar


http://en.wikipedia.org/wiki/Guwahati

http://en.wikipedia.org/wiki/Jaipur


http://en.wikipedia.org/wiki/Patna

http://en.wikipedia.org/wiki/Thiruvananthapuram

http://en.wikipedia.org/wiki/Cheque

http://en.wikipedia.org/wiki/Kolkata


http://en.wikipedia.org/wiki/Mumbai


http://en.wikipedia.org/wiki/Delhi

http://en.wikipedia.org/wiki/Chennai

http://en.wikipedia.org/wiki/Payment_system

http://en.wikipedia.org/wiki/Clearing_(finance)



http://en.wikipedia.org/wiki/Settlement_(finance)

http://en.wikipedia.org/wiki/Electronic_Funds_Transfer

http://en.wikipedia.org/wiki/Automated_teller_machine



http://en.wikipedia.org/wiki/MICR




http://en.wikipedia.org/wiki/Guwahati


http://en.wikipedia.org/wiki/Patna

http://en.wikipedia.org/wiki/Thiruvananthapuram

http://en.wikipedia.org/wiki/Cheque



http://en.wikipedia.org/wiki/Delhi

http://en.wikipedia.org/wiki/Chennai

http://en.wikipedia.org/wiki/Payment_system



http://en.wikipedia.org/wiki/Settlement_(finance)

http://en.wikipedia.org/wiki/Electronic_Funds_Transfer




1(

The performance of the Indian economy is one of the strongest drivers for the bankingindustry's growth and vice versa = boost in the banking industry is also e!pected from the rising per capita income in India, which along with a growth in the earning population of the countrywill lead to a higher number of people utili3ing banking services The per capita income growthis e!pected to be a ma$or driver, as the Indian population primarily comprises of conservative

spenders who invest in property and other necessities Higher disposable income will increasethe retail credit, with consumers investing in a wide range of products

0/#/. #/ro%th in Scheduled Co!!ercial Banks

ndica

rs

>4 !arch

,AA: ,AA6 ,AA= ,AA9 ,AA5 ,A4A ,A44 ,A4, ,A4>ggre

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/>A )*A );A )5A );A );A )/A )A )A

Source*+RBI

SC2(D'L(D COMM(RCI#L B#);SF B'SI)(SS I) I)DI#* ,AA:+A6 $O ,A4,+4>

(=s on the last reporting 8riday of 1onth

http://en.wikipedia.org/wiki/Gross_national_product





1)

GInclude Invest!ent in ovt and Other #""roved Securities Only

Market share of bank grou"s by de"osits

$otal )u!ber of #$Ms Scheduled Co!!ercial Banks via Bank rou" Eise

7ear< bank

grou" %ise

&OR(I)

B#);S

)#$IO)#LIS(D

B#);S

)(E

PRI?#$(

S(C$OR B#);S

OLD

PRI?#$(

S(C$OR B#);S

SBI #)D I$S

#SSOSI#$(S

$O$#L

,AA9+A5 %,*5; %;,&;* %+,/;/ +,/); %%,>> ;+,5>>

,AA5+4A %,*+/ %,)*+ %5,*5) >,>* +*,)& /*,%5>

,A4A+44 %,>/) +;,&>/ %,5+5 ;,%+/ +;,/5% );,5*5

,A44+4, %,;%; >%,*5* >*,>*& 5,))% +),%;> 5,/&/Source* RBI

(#R)I)S. (3P()S(S #)D PRO&I$S O& SC2(D'L(D COMM(RCI#L



1*

B#);S ,AA=+A9 $O ,A4,+4>

2++(.+) 2++).+* 2++*.1+ 2+1+.2+11 2+11.2+12 2+12.2+13

+

1+++

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%+* &)1 '&2 ()) *2+ **)%2( &2( &(1 (+3 )1( *12

#otal arning #otal 4penses

Provisions 5 6ontingencies Pro7t8 oss

billion Rs

Source*+RBI

M#)I$'D( O& BR#)C2(S O& SC2(D'L(D COMM(RCI#L B#);S

7ear Rural Se!i+'rban 'rban Metro"olitan

,A4- ;;/ >%+& +%>%* %%;>

,A4> >)%& +&;; %&)> %&*&%

,A4, >/5>% +5&++ %&&5+ %)+/&,A44 >>;/ +>*) %)/%; %/+/%

,A4A >+;/ +*)& %//)) %5+);

,AA5 >%;;5 %*&* %5+/ %;%5%

,AA9 >*)/+ %))% %;+> %>+*;

,AA= >*+>/ %/55* %+&/ %++;5

,AA6 >*%*% %5)&) %+%+; %%/;>

,AA: >+*&+ %5;*> %%5** >)*

,AA- >+%+% %5*% %%*** &)/

,AA> >+>*> %;&5 %*/> &/&*

,AA, >+>&* %;);) %*;)) &5&/

,AA4 >+5/+ %;5) %*+> &;/)

,AAA >+)>; %;;*) %**5+ &+%

4555 >+&5) %;%/& && &*%/4559 >+&)& %>&* 5) ))/>

455= >+%5 %>)// >;* )5+

4556 >+5 %>5/% *&/ )>&;

455: >>**; %>>;% &&/& )%5;

455- >5>+ %%&* &);5 5&>

455> >5>& %%;/5 &5/+ 5)5>

455, >5+/ %%>5/ &+) 5///

4554 >5+*/ %%>;; &*;/ 5/+;



2+

455A >;)% %%>+; &*;+ 555

4595 >>*%; %%%// )5+; 55

4599 >%%%; %%%>+ )>++ 5&;+

459= >*+* %*/>) )+%& 5)5

4596 +)*> %*5&5 )+* 5)*

459: >*%&5 &%/ /5)& ;&*/

459- +5>&* >+/ /%%/ ;5%*459> ++/&/ *&% 5%) ;>5

459, &&* &&* 5/> ;+);

4594 %)/5/ &;)% 5;5; ;%+/

459A %5%*5 &%++ 5%)& ;*%;

45=5 %>>>) )&& 5*>) >>

45=9 %%&*/ )/+& ;&;> >)>)ote* Data are e/clusive of ad!inistrative offices8

Source* Data u" to ,AA: are based on Basic Statistical Returns of Scheduled Co!!ercial Banks8 $hereafter data are

based on Master Office &ile as on Se"te!ber 4. ,A4-8

IMPOR$#)$ B#);I) I)DIC#$ORS+ R(IO)#L R'R#L B#);S+

O'$S$#)DI)0Ru"ees Billion17ear De!and

De"osits

$i!e De"osits #ggregate

De"osits

Bank Credit Cash in 2and

,A4>+4- ;/)>+ %&&)++ +>5;5; %5&%& +>&*

,A4,+4> >)+/ %5%5; %/;++ %+*+ %&%*

,A44+4, >;;) %>&%; %)>>> %%%*&+ %&+*

,A4A+44 >>//> %+>*> %5/)*+ ;5;5 %/)%

,AA5+4A +&)%* %*)%*; %>5&%; )*%/ %;>;

,AA9+A5 +;>5> &;)5 %%>&+& /;*%% %++/

,AA=+A9 +%*++ )>>* ;;%+ 5);%) %%*;

,AA6+A= +***> /%/%) &%/+* ;&;+* %%%*

,AA:+A6 %)>55 ;/&;* /;%5 >/*5* %%55

,AA-+A: %+)5) ;55+ 5&+&/ >%/5% 5&

,AA>+A- %*)+) ;+//> 5>>* +5*5) 5;)

,AA,+A> &5%> >%>% ;)/;; +%>5 ;)%

,AA4+A, )>*5 >5%& ;+;; %&*>> ;**

,AAA+A4 /*& +&) >55 %5+%% >5)

4555+AA 5%*5 +;;/ >**5% %+//> >;>

4559+55 ;/&& +*);* +5;+& %%*%/ >**

455=+59 >&*5 %)%)> +*)) /&) +5>

4556+5= +;) %;*+5 %/)% &5;; ++/

455:+56 +;)5 %*&5 %>>)* )+& %))

455-+5: +%%5 &)>> %*&;& /+*% +%/

455>+5- %>; //5% &*;5 5*+; *&/

455,+5> %*> 5+)) />)* ;;5% *);

4554+5, %*;; ;++) 5+)% >5% */;455A+54 ;% >/% ;5/* >;) *5/)otes* 48 Data for ,A4>+4- are "rovisional8 ,8 Data as on last &riday of March u" to 459-+9: and last re"orting &riday of

March thereafter8

Source* RBI

Dith the growth in the Indian economy e!pected to be strong for 2uite some time-especially in its services sector-the demand for banking services, especially retail banking,mortgages and investment services are e!pected to be strong

http://en.wikipedia.org/wiki/Retail_banking

http://en.wikipedia.org/wiki/Retail_banking



21

By +*%> the Indian Banking Industry employed %,%)5,%; employees and had a total of %*,&%% branches in India and %)% branches abroad and manages an aggregate deposit of/)5*;5; billion (K"L%% trillion or O&;* billion and bank credit of 5+/*;5 billion(K"L&)* billion or O/5* billion The net profit of the banks operating in India was%*+)5% billion (K"L%) billion or O%> billion against a turnover of %;&5

billion (K"L%5* billion or O%%* billion for the financial year +*%+-%>Ste"s taken by Reserve Bank of India 0RBI1 to strengthen the banking

infrastructure*+• RBI has permitted domestic "cheduled 7ommercial Banks (e!cluding RRBs to open

branches in tier + to tier / cities (with population up to , as per census +**% withoutthe need to take permission from RBI in each case, sub$ect to reporting

• RBI has also permitted "7Bs (e!cluding RRBs to open branches in rural, semi-urban

and urban centre in 4orth 6astern "tates and "ikkim without having the need to take permission from RBI in each case, sub$ect to reporting

• Regional Rural Banks (RRBs are also allowed to open branches in Tier + to Tier /

centers (with population up to , as per 7ensus +**% without the need to take permission from RBI in each case, sub$ect to reporting, provided they fulfill the followingconditions, as per the latest inspection report

• 7R=R of at least AP

• 4et 40= less than 5AP

• 4o default in 7RR E ":R for the last yearP

• 4et profit in the last financial yearP

• 7B" compliant

• Comestic "7Bs have been advised that while preparing their =nnual Branch 6!pansion

0lan (=B60, they should allocate at least +5A of the total number of branches proposed to be opened during the year in unbanked Tier 5 and Tier / centre ie (population up to ,centre which do not have a brick and mortar structure of any "7B for customer based banking transactions

• RRBs have also been advised to allocate at least +5A of the total number of branches

proposed to be opened during a year in unbanked rural (Tier 5 and Tier / 7entres

• 4ew private sector banks are re2uired to ensure that at least +5A of their total branches

are in semi-urban and rural centre on an ongoing basis

http://en.wikipedia.org/wiki/Credit_(finance)


http://en.wikipedia.org/wiki/Financial_year




http://en.wikipedia.org/wiki/Classification_of_Indian_cities



http://en.wikipedia.org/wiki/Regional_Rural_Bank

http://en.wikipedia.org/wiki/Capital_adequacy_ratio

http://en.wikipedia.org/wiki/Non-performing_asset



http://en.wikipedia.org/wiki/Core_banking






http://en.wikipedia.org/wiki/Regional_Rural_Bank

http://en.wikipedia.org/wiki/Capital_adequacy_ratio


http://en.wikipedia.org/wiki/Core_banking



22

Challenges &aced By Indian Banking Industry*+Ceveloping countries like India, still has a huge number of people who do not have

access to banking services due to scattered and fragmented locations But if we talk about those people who are availing banking services, their e!pectations are raising as the level of services

are increasing due to the emergence of Information Technology and competition "ince, foreign banks are playing in Indian market, the number of services offered has increased and banks havelaid emphasis on meeting the customer e!pectations

4ow, the e!isting situation has created various challenges and opportunity for Indian7ommercial Banks In order to encounter the general scenario of banking industry we need tounderstand the challenges lying with banking industry of India

I8 Credit disburse!ent to the "riority sector*+

#ne of the ma$or challenges faced by the banking system in India is to provide timely

and cost effective credit to the priority sectors especially the agriculture and "mall scale

industries, which are critical in generating employment and support the growth momentum of

the economy Thus banks are re2uired to ensure availability of credit to the agriculture sector,

which forms the backbone of the Indian economy Dith significant slowdown in economic

activity and e!ports during the latter part of 8M*, the credit growth to the micro and small

e!perienced some moderation

II8 Manage!ent of Risks*+

The growing competition increases the competitiveness among banks But, e!istingglobal banking scenario is seriously posing threats for Indian banking industry De have alreadywitnessed the bankruptcy of some foreign banksIII8 (fficiency*+

6!cellent efficiencies are re2uired at bankerJs end to establish a balance between thecommercial and social considerations Bank need to access low cost funds and simultaneouslyimprove the efficiency and efficacy #wing to cutthroat competition in the industry, banks arefacing pricing pressureP have to give thrust on retail assetsI?8 lobal Banking*+

It is practically and fundamentally impossible for any nation to e!clude itself from worldeconomy Therefore, for sustainable development, one has to adopt integration process in theform of liberali3ation and globali3ation as India spread the red carpet for foreign firms in %%The impact of globali3ation becomes challenges for the domestic enterprises as they are bound tocompete with global players

If we look at the Indian Banking Industry, then we find that there are >/ foreign banksoperating in India, which becomes a ma$or challenge for 4ationali3ed and private sector banksThese foreign banks are large in si3e, technically advanced and having presence in globalmarket, which gives more and better options and services to Indian traders?8 &inancial Inclusion*+

8inancial inclusion has become a necessity in today's business environment Dhatever is produced by business houses, that has to be under the check from various perspectives like



23

environmental concerns, corporate governance, social and ethical issues =part from it to bridgethe gap between rich and poor, the poor people of the country should be given proper attention toimprove their economic condition

Cev (+**/ stated that financial inclusion is significant from the point of view of livingconditions of poor people, farmers, rural non-farm enterprises and other vulnerable groups

?I8 (!"loyeesF Retention*+The banking industry has transformed rapidly in the last ten years, shifting fromtransactional and customer service-oriented to profit gain-oriented industry :ong-time bankingemployees are becoming disenchanted with the industry and are often resistant to perform up tonew e!pectations Cue to the intrinsically close ties between staff and clients, losing thoseemployees completely can mean the loss of valuable customer relationships The retail bankingindustry is concerned about employee retention from all levels from tellers to e!ecutives tocustomer service representatives because competition is always moving in to hire them away

The competition to retain key employees is intense Top-level e!ecutives and HR departments spend large amounts of time, effort, and money trying to figure out how to keeptheir people from leaving

?II8 I!"rove risk !anage!ent !echanis!*+

"trategies to combat the problem of high risk perception must be taken up by banks on

priority basis Besides, "16 specific risk management procedures must be setup to make the

business more viable, as the risk perception associated with lending to small enterprises is

generally very high 8urther, the banks would also be re2uired to ac2uire skill for managing

emerging risks resulting from innovations in financial products as well as technological

advancements

"trengthen the e!isting system would be another challenge for the banking industry1ore over the recent global financial market turmoil has accentuated the need for further

improvement in the transparency and disclosure standards

?III8 (nviron!ental Concerns*+

It is 2uite clear from the recently formed 7openhagen 7limate 7ouncil (777 that thereis a severe need for environmental awareness among all the countries of the world 777 published Thought :eadership "eries on 7limate 7hange which is a collection of inspirational,concise and clearly argued pieces from some of the worldJs most renowned thinkers and businessleaders on climate change The ob$ective of the pieces is to assist in enhancing the public and political awareness of the actions that could have a significant impact on global emissions

growth and to disseminate the message that it is time to act The Thought :eadership "eries wasaimed at e!plaining and spreading awareness of the key elements in the business and policyresponse to the climate problem The rationale for the Thought :eadership "eries was to changethe focus of peopleI38 Social and (thical #s"ects*+

There are some banks, which proactively undertake the responsibility to bear the socialand ethical aspects of banking This is a challenge for commercial banks to consider these



2%

aspects in their working =part from profit ma!imi3ation, commercial banks are supposed tosupport those organi3ations, which have some social concerns

Benedikter (+*%% defines "ocial Banks as Fbanks with a conscienceG They focus oninvesting in community, providing opportunities to the disadvantaged, and supporting social,environmental, and ethical agendas "ocial banks try to invest their money only in endeavors that

promote the greater good of society, instead of those, which generate private profit $ust for a few38 &inancial Inclusion Progra!*+

7urrently, in India, ;%A of the adult population doesn't have bank accounts, whichindicates a large untapped market for banking players Knder the 8inancial Inclusion 0rogram,RBI is trying to tap this untapped market and the growth potential in rural markets by volumegrowth for banks 8inancial inclusion is the delivery of banking services at an affordable cost tothe vast sections of disadvantaged and low income groups

S'(S$IO)S*+=s per the above discussion, we can say that the biggest challenge for banking industry is

to serve the mass market of India 7ompanies have shifted their focus from product to customer

The better we understand our customers, the more successful we will be in meeting their needsIndian banks must cut their cost of their services =nother aspect to encounter the challenges is product differentiation Indian banks must adopt some product innovation (Technology upgradation so that they can compete in gamut of competition The level of consumer awareness issignificantly high 4ow-a day they need internet banking, mobile banking and =T1 services

6!pansion of branch si3e in order to increase market share is another tool to combatcompetitors Therefore, Indian nationali3ed and private sector banks must spread their wingstowards global markets as some of them have already done it Indian banks are trustworthy brands in Indian marketP therefore, these banks must utili3e their brand e2uity as it is an valuableasset for them

CO)CL'SIO)*+The economic growth of the country is an apt indicator for the growth of the banking

sector =ccording to an IB=-8I77I-B7. report titled HBeing five star in "roductivity road

!a" for e/cellence in Indian bankingF, India's gross domestic product (.C0 growth willmake the Indian banking industry the third largest in the world by +*+5 and the averageG0P gro!th of )"1 per cent e4pected over 2+1191' !ill facilitate the e4pansion ofthe banking sector"



2&

References*+

• I4CI=4 B=4NI4. I4CK"TRM 7H=::64.6" =4C #00#RTK4ITI6"P CR N=

.#M=: 9 <I@=M @#"HI

• .#M=:, N = =4C @#"HI, < F16R.6R" I4 B=4NI4. I4CK"TRM #8 I4CI=

"#16 616R.I4. I""K6"G

• ="I=4 @#KR4=: #8 BK"I46"" =4C 1=4=.6164T "7I6476", %(+ %5)-%/5,

+*%%=

• wwwibeforg

• CR R#"H=4 :=: =4C CR R=@4I "=:K@= F6-B=4NI4. TH6 I4CI=4

"764=RI#G ="I= 0=7I8I7 @#KR4=: #8 1=RN6TI4. 9 1=4=.6164TR6<I6D I""4 +>%-+&>/ <#:% (;, C6761B6R (+*%+

• H=4CB##N #8 "T=TI"TI7" #4 TH6 I4CI=4 67#4#1MP (httpEEdbierbiorgin

• "T=TI"TI7=: T=B:6" R6:=TI4. T# B=4N" #8 I4CI=

• R6CCM, M< (+**%, ?R6<I<I4. 7#48IC6476 I4 TH6 I4CI=4 67#4#1M?, BI"

R6<I6D, 4# )&, B=4N 8#R I4T6R4=TI#4=: "6TT:6164T", B="6:

http://dbie.rbi.org.in/

http://dbie.rbi.org.in/



2'

• "=4@=M NK1=R CH=4D=4IP R6764T TR64C" I4 I4CI=4 B=4NI4.

I4CK"TRM, wwwabhinav$ournalcom

• <=RI#K" I""K6" #8 BK"I46"" D66N, TH6 67#4#1I"T, BK"I46"" T#C=M,

TH6 67#4#1I7 TI16" =4C 8I4=47I=: 6Q0R6""

• 0R="=C =4C "=IB=: .H#"HP 7#106TITI#4 I4 I4CI=4 B=4NI4. I18

D#RNI4. 0=06R I4CI=4 B=4N" =""#7I=TI#4, <=RI#K" M6=R", =4C06R8#R1=476 HI.H:I.HT" #8 B=4N" (1K1B=I

• R6"6R<6 B=4N #8 I4CI=, <=RI#K" M6=R", R60#RT #4 TR64C =4C

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