HDFC Bank Ltd.
SECTOR PROFILE1. History of Indian banking
is a financial institution that provides banking and other financial services. Bythe term
is generally understood an institution that holds a Banking Licenses.Banking licenses are granted by financial supervision authorities and provide rights toconduct the most fundamental banking services such as accepting deposits and makingloans. There are also financial institutions that provide certain banking services withoutmeeting the legal definition of a bank, a so-called Non-bank. Banks are a subset of thefinancial services industry.The word
is derived from the Italian
which is derived from German andmeans bench. The terms bankrupt and "broke" are similarly derived from
,which refers to an out of business bank, having its bench physically broken.Moneylenders in Northern Italy originally did business in open areas, or big open rooms,with each lender working from his own bench or table.Typically, a bank generates profits from transaction fees on financial services or theinterest spread on resources it holds in trust for clients while paying them interest on theasset. Development of banking industry in India followed below stated steps.
Banking in India has its origin as early as the Vedic period. It is believed that thetransition from money lending to banking must have occurred even before Manu,the great Hindu Jurist, who has devoted a section of his work to deposits andadvances and laid down rules relating to rates of interest.
Banking in India has an early origin where the indigenous bankers played a veryimportant role in lending money and financing foreign trade and commerce.During the days of the East India Company, was the turn of the agency houses tocarry on the banking business. The General Bank of India was first Joint Stock Bank to be established in the year 1786. The others which followed were theBank Hindustan and the Bengal Bank.
In the first half of the 19th century the East India Company established threeS.V Institute of Management, Kadi3