BANKING

Yash MehtaWRO-0412967Rohit MundhraWRO-0425988

INTRODUCTION

An organization, usually a corporation, chartered by a state or federal government, which does most or all of the following: receives demand deposits and time deposits, honors instruments drawn on them, and pays interest on them; discounts notes, makes loans, and invests in securities; collects checks, drafts, and notes; certifies depositor's checks; and issues drafts and cashier's checks.

A bank is a financial institution and a financial intermediary that accepts , deposits and channels those deposits into lending activities , either directly or through capital markets.

A bank connects customers that have capital deficits to customers with capital surpluses

Basic Functions Of BankingThe main functions of banks are accepting deposits from the public and advancing them loans.However, besides these functions there are many other functions which these banks perform. All these functions can be divided under the following heads:1. Accepting deposits2. Giving loans3. Overdraft4. Discounting of Bills of Exchange5. Investment of Funds6. Agency Functions

POPULAR BANKS State Bank of India (SBI)

ICICI Bank

HDFC BANK

Bank Of Baroda

Canara bank

HSBC Bank

Axis Bank(Previously known as UTI Bank)

ICICI BANKICICI Bank is India's second-largest bank with total assets of Rs. 4,062.34 billion (US$ 91 billion) at March 31, 2011 and profit after tax Rs. 51.51 billion (US$ 1,155 million) for the year ended March 31, 2011. The Bank has a network of 2,752 branches and 9,225 ATMs in India, and has a presence in 19 countries, including India.

ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries in the areas of investment banking, life and non-life insurance, venture capital and asset management.

ICICI Bank's widespread network of ATMs makes it easy and convenient for users to bank 24 hours a day With 9,225 ATMs set-up within India, ICICI ensures that we are never too far from an ICICI Bank ATM. User-friendly graphic screens and easy to follow instructions in a choice of local languages, makes ATM Banking with ICICI Bank a smooth experience. ICICI also have 2,752 branches within the country.

iMobile is ICICI Bank's mobile banking application. Easy, convenient and secure to use, iMobile lets you transfer funds, pay bills, book travel or movie tickets, recharge your prepaid mobile and DTH, locate an ATM, and a do lot more while you are on the go.

AXIS BANK• Axis Bank Ltd, formerly UTI Bank is an Indian financial services firm that had

begun operations in 1994, after the Government of India allowed new private banks to be established.

• The Bank was promoted jointly by the Administrator of the Specified Undertaking of the Unit Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance Corporation Ltd, National Insurance Company Ltd.

• The New India Assurance Company, The Oriental Insurance Corporation and United India Insurance Company UTI-I holds a special position in the Indian capital markets and has promoted many leading financial institutions in the country.

• The bank changed its name to Axis Bank in April 2007 to avoid confusion with other unrelated entities with similar name.

How Banks Work ?• The funny thing about how a bank works is that it functions

because of our trust. We give a bank our money to keep it safe for us, and then the bank turns around and gives it to someone else in order to make money for itself.

• Banks can legally extend considerably more credit than they have cash. Still, most of us have total trust in the bank's ability to protect our money and give it to us when we ask for it

• Banks invest the money of the depositor ,they also lend the money in order to earn interest income . Banks also invest in government securities , the difference in the amount earned from investment ,loans granted and amount of interest given to the account holders is Banks`s profit.

HDFC Bank Limited is an Indian financial services company that was incorporated in August 1994. HDFC Bank is the fifth largest bank in India by assets and the second largest bank by market capitalization as of February 24, 2012. The bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank has 1,986 branches and over 5,471 ATMs, in 996 cities in India, and all branches of the bank are linked on an online real-time basis. As of 30 September 2008 the bank had total assets of Rs.1006.82 billion. e-Wallet Card is an electronic card which works like a credit or a debit card for making secure online payments towards a merchant. It can be created by all HDFC Bank internet banking customers and also no registration is required for the same.The main benefit of this card is that the debit/credit card number is not compromised on an unknown website.

Balance Sheet of HDFC Bank

Cash flows for the year 2010-11

Amt in '000

Particulars Year ended 31-3-2011 Year ended 31-3-2010

Cash flows from operating activitiesNet profit before income tax 58,186,567 42,891,365Adjustments -61,944,833 51,007,535Net cash flow from / (used in) operating activities -3,758,266 93,898,900Cash flows from investing activitiesNet cash used in investing activities -11,227,385 -5,515,122Cash flows from financing activitiesNet cash generated from financing activities 12,279,934 35,989,147Effect of Exchange Fluctuation on Translation reserve -29,922 -15,104Net Increase / (Decrease) in cash and cash equivalents -2,735,639 124,357,821Cash and cash equivalents as at April 1st 299,423,988 175,066,167Cash and cash equivalents as at March 31st 296,688,349 299,423,988

Conclusion

IT has a great impact on Banking due to the following reasons:• Technology has opened up new markets, new products, new services and

efficient delivery channels for the banking industry. Online electronics banking, mobile banking and internet banking are just a few examples.

• Information Technology has also provided banking industry with the wherewithal to deal with the challenges the new economy poses. Information technology has been the cornerstone of recent financial sector reforms aimed at increasing the speed and reliability of financial operations and of initiatives to strengthen the banking sector.

• The IT revolution has set the stage for unprecedented increase in financial activity across the globe. The progress of technology and the development of world wide networks have significantly reduced the cost of global funds transfer.

The EndBibliography:http://www.highbeam.com/doc/1G1-177943283.htmlhttp://www.hdfcbank.com/aboutus/cg/annual_reports.htmwww.icicibank.com/aboutus/about-us.htmwww.axisbank.com/about-us/about-us.aspx