Professional Documents
Culture Documents
Indian Banking
Financial System
Module A
K Chockalingam
IIBF
Financial System
Financial assets/instruments
Financial Institutions
Includes
which
Institutions
Financial Markets
money market
Bill Market
Treasury bills
Commercial bills
Bank
loans (short-term)
Organized money market comprises
RBI, banks (commercial and cooperative)
Bill Market
Indigenous bankers
Development Oriented
Banking
(2)
Deposit mobilisation:
1951-1971 (20 years)- 700% or 7 times
1971-1991 (20 years)- 3260% or 32.6 times
1991- 2006 (11 years)- 1100% or 11 times
Profitability of
Banks(1)
Reforms
Rising
Bank profitability:
Suggestions
Suggestions (contd)
NPA Management
The
Narasimham Committee
recommendations were made, among
other things, to reduce the NonPerforming Assets (NPAs) of banks
To tackle this, the government enacted
the Securitization and Reconstruction of
Financial Assets and Enforcement of
Security Act (SARFAESI) Act, 2002
Enabled banks to realise their dues
without intervention of courts
SARFAESI Act
Gilt-edged market
Industrial securities market (new issues and
stock market)
Financial Intermediaries
Merchant Banks
Mutual Funds
Leasing Companies
Venture Capital Companies
Conclusion
hank
ou
K Chockalingam
TEL : 9322295394
e.mail: chockalingam_2000@yahoo.com
chockalingam@iibf.org.in