NAGINDAS KHANDWALA COLLEGE OF COMMERCE, ARTS AND

MANAGEMENT STUDIES

PROJECT REPORT ON

EVOLUTION AND DEVELOPMENT

OF

PUBLIC SECTOR BANKS

SUBMITTED BY

VIRAJ N. SHAH

IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF

T.Y.B.COM (FINANCIAL MARKETS)

SEMESTER V

PROJECT GUIDE

PROF. POONAM SHAH

UNIVERSITY OF MUMBAI
ACADEMIC YEAR: 2014 2015
Acknowledgement

It is almost inevitable to incur indebtedness to all who generously helped by

sharing their invaluable time and rich experience with me, without which this
project would not have been completed.

No task can be achieved alone, particularly while attempting to finish a project

of such magnitude. It took many special people to facilitate it and support it.
Hence I would like to acknowledge all of their valuable support and convey my
humble gratitude to them.

I sincerely thank my coordinator Prof. Kavita Shah for giving opportunity to

select topic for project.

I would like to acknowledge my sincere gratitude to Prof. Poonam Shah for

being my project guide and sharing her valuable ideas, constructive criticism
and motivation, which were the guiding light during the entire tenure of the
work.

Thank you for all for supporting me in making this project a reality

VIRAJ N. SHAH
INDEX

SR.NO

Contents
PAGE

NO.

1
Introduction

1.1
Executive Summary
1

1.2
Objectives
1

1.3
Research Methodology
2
2
Banking

2.1
Definitions
3

2.2
History
3

2.3
Pre-Independence
5

2.4
Post-Independence
6

2.5
Banking Regulation Act, 1949
7
2.6
Reserve Bank of India
9

2.7
Nationalization of banks
11

2.8
Liberalization of banks
13

2.9
Privatization of banks
14

2.10 Globalization of banks

17

2.11 Banking sector reforms 1999-2000

17

2.12 Narasimham Committee Report I

20
2.13 Narasimham Committee Report II
21

2.14 Universal Banking

23

3
Technological trends in Public Sector Banks

3.1
Core Banking Solutions
28

3.2
Payment and Settlement Systems
35

4
Marketing trends in Public Sector banks
4.1
Introduction
40

4.2
Indian Bank
41

4.3
State Bank of India
41

4.4
Union Bank of India
41

5
Other trends in Public Sector Banks

5.1
Retail Banking
42
5.2
Customer Relationship Management
42

5.3
Change of Bank logos
43

5.4
Recruitments in Public Sector Banks
44

6
Case Study
45

7
Findings & Suggestions

7.1
Findings
50

7.2
Suggestions
50

7.3
Conclusion
51
7.4
Bibliography
52