FINANCIAL MARKETS

& SERVICES
ASSIGNMENT
1: INTRODUCTION (ABOUT THE SERVICE ) :-
The service which I chose is Banking Services.
Banking as a service is an end-to-end process ensuring the overall
execution of a financial service provided over the web. Banking
services provide funds for business as well as personal needs of
individuals. They play a significant role in the economy of a nation.
Let us know about the role of banking.
• It encourages savings habit amongst people and thereby makes
funds available for productive use.
• It acts as an intermediary between people having surplus money
and those requiring money for various business activities.
• It facilitates business transactions through receipts and payments
by cheques instead of currency.
• It provides loans and advances to businessmen for short term and
long-term purposes.
• It also facilitates import export transactions.
• It helps in national development by providing credit to farmers,
small-scale industries and self-employed people as well as to large
business houses which lead to balanced economic development in
the country.
• It helps in raising the standard of living of people in general by
providing loans for purchase of consumer durable goods, houses,
automobiles, etc.

EVOLUTION OF BANKS IN INDIA

From the vedic period beginning of 1750 BC there are evidences of
loans of the ancient India. During Mauryan rule, an instrument called
Adesha, an order to a banker to pay the third person with a desire
was in use which is now called as the bill of exchange as per our
understanding today. During Buddhist period, the letters of credit
was in use given in large towns . In the modernized banking every
bank started issuing overdraft in order to earn more profits, this led
to non-maintenance of adequate reserves which caused financial
crises. Now to maintain the goodwill of the bank, every government
has the central bank whose instructions should be followed by all the
commercial banks. By the end of 16th century and during 17th the
banking functions like transferring of funds, accepting deposits,
money lending, money changing were combined with the issuance of
bank debts which were the substitutes for silver and gold coins.
Banks became important for funding by the end of the 17th century,
which led to the changes in the government regulations. The new
banking implementations promoted the industrial growth by making
the convenient means of payments.

2: ABOUT THE BANKING SERVICE INDUSTRY :-

As per the Reserve Bank of India (RBI), India’s banking
sector is sufficiently capitalised and well-regulated. The financial and
economic conditions in the country are far superior to any other
country in the world. Credit, market and liquidity risk studies suggest
that Indian banks are generally resilient and have withstood the
global downturn well.
Indian banking industry has recently witnessed the roll out of
innovative banking models like payments and small finance banks.
RBI’s new measures may go a long way in helping the restructuring
of the domestic banking industry.
The digital payments system in India has evolved the most among 25
countries with India’s Immediate Payment Service (IMPS) being the
only system at level 5 in the Faster Payments Innovation Index (FPII).

Market Size
The Indian banking system consists of 26 public sector banks, 20
private sector banks, 45 foreign banks, 64 regional rural banks, 1,562
urban cooperative banks and 94,384 rural cooperative banks, in
addition to cooperative credit institutions (FY17 data).  In FY07-18,
total lending increased at a CAGR of 10.94 per cent and total
deposits increased at a CAGR of 11.66 per cent. India’s retail credit
market is the fourth largest in the emerging countries. It increased to
US$ 281 billion on December 2017 from US$ 181 billion on
December 2014.

Investments / Developments
Key investments and developments in India’s banking industry
include:

 As of September 2018, the Government of India launched India

Post Payments Bank (IPPB) and has opened branches across
650 districts to achieve the objective of financial inclusion.
 The total value of mergers and acquisition during 2017 in NBFC
diversified financial services and banking was US$ 2,564 billion,
US$ 103 million and US$ 79 million respectively .
 The biggest merger deal of FY17 was in the microfinance
segment of IndusInd Bank Limited and Bharat Financial
Inclusion Limited of US$ 2.4 billion .
 In May 2018, total equity funding's of microfinance sector grew
at the rate of 39.88 to Rs 96.31 billion (Rs. 4.49 billion) in 2017-
18 from Rs 68.85 billion (US$ 1.03 billion) .

3:ABOUT THE COMPANY (incorporation ,

management & financial performance) :-
Any one of the Banking Company in detail :-

Punjab National Bank (PNB) is an Indian public

sector banking and financial service company, with its headquarters
in New Delhi, India. The bank was founded in 1894. As of 31 March
2019, the bank has over 110 million customers, 7001 branches (7,000
as on 2nd oct, 2018) and 10681 ATMs across 764 cities .
PNB's founders included several leaders of the Swadeshi movement
such as Dyal Singh Majithia and Lala Harkishen Lal, Lala Lalchand, Kali
Prosanna Roy, E. C. Jessawala, Prabhu Dayal, Bakshi Jaishi Ram, and
Lala Dholan Dass.
 Lala Lajpat Rai was actively associated with the management of the
Bank in its early years. The board first met on 23 May 1894
PNB has the distinction of being the first Indian bank to have been
started solely with Indian capital that has survived to the present.
PNB has had the privilege of maintaining accounts of national leaders
such as Mahatma Gandhi, Jawahar Lal Nehru, Lal Bahadur
Shastri, Indira Gandhi, as well as the account of the
famous Jalianwala Bagh Committee.

Management
Name Designation

Agyey Kumar Azad Executive Director

Asha Bhandarker Director

Balbir Singh Co. Secretary & Compl. Officer

Balbir Singh Secretary

L V Prabhakar Executive Director

P K Sharma General Manager

P K Varshney Chief Manager

Pankaj Jain Director

Rabi N Mishra Director

Rajesh Kumar Yaduvanshi Executive Director

Ravi Mital Director

S K Jain Deputy General Manager

Sanjay Verma Director

Satish K Nagpal Chief Vigilance Officer

Sunil Mehta CEO

Sunil Mehta Managing Director & CEO

Financial Performance