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  • New Banking Licenses: by Group 4

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    Pranjali Jain
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    The document discusses banking in India, including issues around access and coverage. It notes that there are 25 public sector banks, 22 private sector banks, and 31 foreign banks operating in India. However, many parts of the country remain underbanked. The document examines average branch coverage in various parts of India and compares it to international averages. It also discusses the government's stance on increasing banking licenses and addresses debates around capital requirements, ownership structures, and other regulatory issues involved in expanding banking in India.

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    New banking licenses

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    The document discusses banking in India, including issues around access and coverage. It notes that there are 25 public sector banks, 22 private sector banks, and 31 foreign banks operating in India. However, many parts of the country remain underbanked. The document examines average branch coverage in various parts of India and compares it to international averages. It also discusses the government's stance on increasing banking licenses and addresses debates around capital requirements, ownership structures, and other regulatory issues involved in expanding banking in India.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views16 pages

    New Banking Licenses: by Group 4

    Uploaded by

    Pranjali Jain
    The document discusses banking in India, including issues around access and coverage. It notes that there are 25 public sector banks, 22 private sector banks, and 31 foreign banks operating in India. However, many parts of the country remain underbanked. The document examines average branch coverage in various parts of India and compares it to international averages. It also discusses the government's stance on increasing banking licenses and addresses debates around capital requirements, ownership structures, and other regulatory issues involved in expanding banking in India.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 16

    New banking licenses

    By Group 4
    Introduction

     RBI

     Restrictions

     Startup


    The Banks
     25 public sector

     22 private sector

     31 foreign banks

     Rural/regional/co-operative
    Issues
     Under banked

     Coverage

     Financial inclusion


    The coverage
     Urban-9500

     Rural-16000

     Average-13000
    International average
     Singapore-7600

     Brasil-5500

     Japan-7100

     US-2500
    Indian story
     8 branches for 1lakh people

     10-south India

     5-North east India


    Government stance
     Public opinion

     RBI

     Academia
    The ropes

     Survival on borrowing

     Creation through deposit


     The spread
    CAPITAL REQUIREMENT
     Minimum capital requirement in India is Rs.
    300crore.

     Internationally the stipulation is more.


    § Singapore – Rs. 5500crore
    § Malaysia – Rs. 3000crore
    § Kuwait – Rs. 1200crore

    qWhether smaller players should be allowed to


    enter the banking business??


     Banking has become more and more
    technology intensive.

     Technology demands more capital.


     Barrier to the smaller players.



    INTERNATIONAL PROMOTER SHARE-
    HOLDING PATTERN
     15% Australia
     50% European Union

     5% France

     10% Japan

     No stringent stipulation on shareholding caps.



    INDIAN SHARE-HOLDING

     Highly promoter driven.


     Comparatively low international shareholding.


     Need for control.



    BUSINESS HOUSES & BANKING

     Threat of channelized lending.


     Industrial disparity.

     Resentment of control measures.


    OUTCOME

     More new licenses to come.


     Better banking facilities.


     Soaring private sector.



    THANK YOU!!!

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