BANKING INDUSTRY

with reference to Banking Industry

Presented by: Sahil Chaudhary

INTRODUCTION
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Commercial banking refers to the core function of banking institutions that

primarily provide financial services to businesses, individuals, and
organizations. It forms an integral part of the overall banking system and is
crucial in facilitating economic growth and development. Commercial banks
serve as intermediaries between those with surplus funds (depositors) and
those needing funds (borrowers). They collect deposits from individuals,
businesses, and various institutions, paying them interest on their deposited
funds. These deposits form the basis for the bank's lending activities.

The primary function of commercial banks is to offer loans and credit facilities
to borrowers, including businesses and individuals. They assess the
creditworthiness of potential borrowers and provide funds for various
purposes, such as starting a business, expanding operations, purchasing assets,
or meeting personal financial needs. Commercial banks earn interest income
on the loans they extend, which forms a significant portion of their revenue.
ABOUT THE BANKING INDUSTRY
The banking industry is a crucial sector that provides essential financial
services to individuals, businesses, and governments. Its functions encompass
accepting deposits, offering loans and credit facilities, facilitating payments
and transactions, providing investment and wealth management services, and
supporting international trade through trade finance and foreign exchange
services. Commercial banks, investment banks, and central banks form the
core components of the industry's structure.
However, the industry faces challenges such as regulatory compliance,
technological advancements, evolving customer expectations, and increasing
competition. The banking industry is a vital component of the global financial
sector, playing a pivotal role in economic growth, financial intermediation, and
providing essential services to individuals, businesses, and governments. This
mini project aims to explore the multifaceted aspects of the banking industry,
including its functions, structure, challenges, and future trends.
EVOLUTION OF BANKING
• Pre- Independence Era (Pre-1947)
• Nationalization of Banks (1950s-1969)
• Branch Expansion and Rural Focus (1970s-1990s)
• Digital Transformation and Fintech Collaboration (2010s-Present)
• Regulatory Reforms and Consolidation (2010s-Present)
 COMMERCIAL BANKS
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• Commercial banks in India play a vital role in the country's financial system, driving economic growth and
promoting financial inclusion. They offer a wide range of financial services, including accepting deposits,
providing loans and credit facilities, facilitating payments and transactions, and offering investment and wealth
management services.
• Commercial banks serve individuals, businesses, and government entities, acting as intermediaries between savers
and borrowers. They mobilize savings from individuals and institutions, channeling them towards productive
economic activities through loans and credit.

• Commercial banks also play a crucial role in facilitating trade and foreign exchange, supporting domestic and
international transactions. In India, commercial banks are categorized into public sector banks, private sector
banks, foreign banks, and regional rural banks. Public sector banks, such as the State Bank of India and Punjab
National Bank, have a significant presence and contribute to financial inclusion initiatives. Private sector banks,
including ICICI Bank and HDFC Bank, are known for their technological advancements and customer-eccentric
approach.
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FUNCTIONS OF COMMERCIAL BANKS

• Accepting Deposits
• Granting Loans and Credit
• Payment Services
• Trade Finance
• Investment and Wealth Management
• Foreign Exchange Services
THANK YOU
Any Questions?