Banking in India Banking in India in the modern sense originated in the last decades of the 18th century.

The first banks were Bank of Hindustan (1770 18!"# and The $eneral Bank of India% established 178& and since defunct. The largest bank% and the oldest still in e'istence% is the (tate Bank of India% which originated in the Bank of )alcutta in *une 180&. This was one of the three +residency banks% the other two being the Bank of Bombay and the Bank of ,adras% all three of which were established under charters from the British -ast India )om+any. The three banks merged in 1"!1 to form the Im+erial Bank of India% which% u+on India.s inde+endence% became the (tate Bank of India in 1"//. 0or many years the +residency banks acted as 1uasi central banks% as did their successors% until the 2eser3e Bank of India was established in 1"4/. In 1"&" the Indian go3ernment nationali5ed all the ma6or banks that it did not already own and these ha3e remained under go3ernment ownershi+. They are run under a structure know as .+rofit making +ublic sector undertaking. (7(8# and are allowed to com+ete and o+erate as commercial banks. The Indian banking sector is made u+ of four ty+es of banks% as well as the 7(8s and the state banks% they ha3e been 6oined since the 1""0s by new +ri3ate commercial banks and a number of foreign banks. Banking in India was generally fairly mature in terms of su++ly% +roduct range and reach e3en though reach in rural India and to the +oor still remains a challenge. The go3ernment has de3elo+ed initiati3es to address this through the (tate Bank of India e'+anding its branch network and through the 9ational Bank for :griculture and 2ural ;e3elo+ment with things like microfinance. Indian Banking Industry currently em+loyees 1%17/%1<" em+loyees and has a total of 10"%811 branches in India and 171 branches abroad and manages an aggregate de+osit of I92&7/0<./< billion (8(=1.1 trillion or >7"0 billion# and bank credit of I92/!&0<./" billion (8(=8&0 billion or >&!0 billion#. The net +rofit of the banks o+erating in India was I9210!7./1 billion (8(=17 billion or >1! billion# against a turno3er of I92"1<8./" billion (8(=1/0 billion or >110 billion# for the fiscal year !01! 14.

?rigin of Banking .