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Difference between public sector bank and private sector banks and foreign banks

Banks

Introduction

Further. mortgage. credit cards. and asset quality and risk management. etc. The consumer being on the receiving end is in the comfortable position but the banks trying to increase their market share have to continuously add value for consumers in order to increase market share and sustain their growth. This has given a great support for the development of banking industry in the country. As India has a substantial upper and middle class income hence the banks have immense opportunities to increase their market shares. competition among the banks has drastically been increased. BANKING SECTOR The banking sector is the most dominant sector of the financial system in India. profitability. The financial health of the commercial banks has improved manifolds with respect to capital adequacy. securitization. insurance. Due to globalization.Banking institution: The Indian economy is emerging as one of the strongest economy of the world with the GDP growth of more than 8% every year. Significant progress has been made with respect to the banking sector in the post liberalization period. Liberalization has created a more competitive environment in the banking sector. deregulation has opened new opportunities for banks to increase revenue by diversifying into investment banking. . depository services.

and pays interest on them. The first banks were The General Bank of India. makes loans. . which does most or all of the following: receives demand deposits and time deposits. Investors point of view: An organization. The first records of such activity dates back to around 2000 BC in Assyria and Babylonia. The three banks merged in 1921 to form the Imperial Bank of India. and notes. For many years the Presidency banks acted as quasi-central banks. which started in 1786. which originated in the Bank of Calcutta in June 1806. both are now defunct. became the State Bank of India in 1955. certifies depositor's checks. This was one of the three presidency banks. usually a corporation. there is similar evidence of the independent development of lending of money in ancient China and separately in ancient India. The oldest bank in existence in India is the State Bank of India. collects checks. lenders who were based in temples made loans but also added two important innovations: accepting deposits and changing money. and then lending out this money in order to earn a profit. and invests in securities. as did their successors. chartered by a state or federal government. History of banking: The first banks were the merchants of the ancient world that made loans to farmers and traders that carried goods between cities. in ancient Greece and during the Roman Empire. the other two being the Bank of Bombay and the Bank of Madras. which. and Bank of Hindustan. Later. which almost immediately became the Bank of Bengal. discounts notes. upon India's independence.Definition: In general terms. During this period. the business activity of accepting and safeguarding money owned by other individuals and entities. and issues drafts and cashier's checks. drafts. which started in 1790. honors instruments drawn on them. all three of which were established under charters from the British East India Company. Banking in India: Banking in India originated in the last decades of the 18th century.

. B a n k s cater to the needs of agriculture lists. Thus. established by Giovanni Medici in 1397. There was a time when dwellers of the city alone could enjoy their services. Since the public decide on who runs the government. It natural lyarouses Kotak Bank's interest in knowing more about the ‘Bank’ and the various men and the activities connected with it. Venice and Genoa. The Bardi and Peruzzi families dominated banking in 14th century Florence. A Public Sector bank is one in which. to the rich cities in the north such as Florence. t h e b a n k i n g c o n s t i t u t e s t h e f u n d a m e n t a l b a s i s o f e c o n o m i c g r o w t h . They are also called Nationalized Banks or Public Banks. In modern a g e . industrialists. It is as good as the government running the bank. can be traced to medieval and early Renaissance Italy. developments in telecommunications and computing resulting in major changes to the way banks operated and allowed them to dramatically increase in size and geographic spread.. . these banks that are fully/partially owned by the government are called public sector banks. 1) Public sector banks: A Government owned bank is one that is fully owned by the national government. Now banks offer access to even a common man and their activities extend to areas h i t h e r t o u n t o u c h e d . traders and to all the other sections of the society. the Government of India holds a majority stake. The Late-2000s financial crisis saw significant number of bank failures. establishing branches in many other parts of Europe. For ex: State Bank of India. Indian Bank. During the 20th century. The development of banking spread through Europe and a number of important innovations took place in Amsterdam during the Dutch Republic in the 16th century and in London in the 17th century. Important of banking: Today banks have become a part and parcel of Kotak Bank's life. Perhaps the most famous Italian bank was the Medici bank. Indian Overseas Bank. in the modern sense of the word.Banking. and much debate about bank regulation. including some of the world's largest banks. they accelerate the economic growth of a country and steer the wheels of the economy towards its goals of “self reliance in all fields”.

State Bank of Hyderabad 4.B) State bank of India and its Associates Banks: On the recommendation of Rural Credit survey Committee. State Bank of Patiala 7.State Bank of Mysore. Syndicate Bank 16. Bank of Maharashtra 21. The State Bank of India besides List of public sector banks: Public Sector Banks (Nationalised banks): 1.Currently. Bank of India 10. Bank of Baroda 20.State Bnk of Bikaner and jaipur .State Bank of India Patiala. UCO Bank 17. Andhra Bank 19. State Bank of Bikaner & Jaipur 3.the State Bank of Hyderabad. State Bank of Saurashtra 8. Allahabad Bank 18. The State Bank India (Associate Banks) Act was passed in 1959 and this paved the way for creating State Bank Group. State Bank of Travancore 9. Central Bank of India 12. the State Bank of India(SBI) is the first State owned Commercial Bank in the Country.State Bank of Indore. State Bank of Mysore 6.State Bank of India of Saurashtra and State Bank of Travancore constitute the State Bank Group. Corporation bank 13. Indian Bank 14. Canara Bank 11. Dena Bank . State Bank of India (SBI) 2. The SBI was established with a national purpose to take banking to the countryside and hence it was required to function as a development agency. the Imperial Bank of India was converted to State Bank of India on 1st July 1955. Indian overseas bank 15. State Bank of Indore 5.Its 92% shares were acquired by the RBI. Thus.

The private sector encompasses all for-profit businesses that are not owned or operated by the government. Federal Bank 4. Union Bank of India 25. Bassein Catholic Bank . IDBI Bank Logos of public sector banks: Private sector banks: The part of the economy that is not state controlled. List of private sector banks: 1. HDFC Bank 2. Yes Bank 6. ICICI Bank 3. Bank of Rajasthan 7. Punjab & Sind Bank 24.22. Vijaya Bank 27. Oriental Bank of Commerce 23. United Bank of India 26. ING Vysya Bank 1. Bharat Overseas Bank 8. Companies and corporations that are government run are part of what is known as the public sector. and is run by individuals and companies for profit. while charities and other non profit organizations are part of the voluntary sector. Axis Bank (formerly UTI Bank) 5. Catholic Syrian Bank 9.

Saraswat Bank 28. List of foreign banks: 1. Punjab National Bank 26. Lakshmi Vilas Bank 20. Ratnakar Bank 22. Rupee Bank 27. Ganesh Bank of Kurundwad 14. Kotak Mahindra Bank 19. City Union Bank 11. Tamilnad Mercantile Bank 29. Because the foreign branch banks' loan limits are based on the parent bank's capital. SBI Commercial and International Bank 23. Karur Vysya Bank 18. Thane Janata Sahakari Bank Logos of private sector banks: Foreign banks: A type of foreign bank that is obligated to follow the regulations of both the home and host countries. Jammu & Kashmir Bank 16. Amazing Mercantile Bank 25. foreign banks can provide more loans than subsidiary banks. South Indian Bank 24.10. ABN AMRO 2. IndusInd Bank 15. Citibank India 4. Karnataka Bank Limited 17. Dhanalakshmi Bank 13. HSBC (Hongkong & Shanghai Banking Corporation) . Nainital Bank 21. BNP Paribas 3. Development Credit Bank 12.

Société Générale 29. American Express Bank 13. Bank of Bahrain & Kuwait 17. Deutsche Bank 10. Bank of America 7. Barclays Bank 9. Standard Chartered Bank 8. Oman International Bank 28. Calyon Bank 21. Mashreq Bank 26. Bank International Indonesia 16. Arab Bangladesh Bank 15. Cho Hung Bank 23. Abu Dhabi Commercial Bank Ltd 12. Krung Thai Bank 25. Scotia 31. Antwerp Diamond Bank 14. Bank of Tokyo Mitsubishi UFJ 20. Bank of Nova Scotia 19. DBS Bank 24. ChinaTrust Commercial Bank 22.5. Bank of Ceylon 18. Taib Bank Logos of foreign banks: . Mizuho Corporate Bank 27. Royal Bank of Scotland 11. J P Morgan Chase Bank 6. State Bank of Mauritius 30.