Size of the banking sector has gone up over six times from Rs. the Industry has so far acted as an efficient partner in the growth and the development of the country. Credit cards. Increase in Retail Finance .984 bn In 1995 to over RS.   Increase in FDI from 49% to 74% for Private banks.Introduction    Banks are the most significant Bodies in the Indian financial market.36. Insurance. This transformation has been largely brought about by:    liberalization and economic reforms.g. More Services Offered e.5.105 bn in 2006. Increased Competition from Domestic & foreign Banks. Dominated by public sector Banks. Foreign Currency loans and Investment Banking.

Reserve Bank of India. • • .000 branches and 17.000 ATMs across the Country. Post Independence this bank was named as SBI in year 1955.Banking Industry : Overview • • First bank established in 1786 named As ‘General Bank Of India’.31 Foreign banks With a combined network of more than 60. In 1920 .222 Commercial Banks .Centralized monetary body of India Post liberalization reforms.28 Public sector banks . we have approximately: .29 Private Banks .three Presidency banks merged to form ‘Imperial Bank of India’.

Major Players in Banking sector Indian Banks Foreign Banks  HSBC  Standard Chartered Bank  Barclays Bank  Deutsche Bank  CitiBank  Bank of America • • • • • • • • ICICI BANK HDFC State Bank of India Punjab National Bank AXIS bank Corporation bank IDBI Bank Of Baroda .

to attract the farmer’s votes.PEST ANALYSIS Political/legal environment     Government and RBI policies Declaration of measures like waiver of short-term agricultural loans. open and run by the politicians. Chairmen of the various banks appointed by the govt. Exploitation of various banks in the cooperative sector. . Various policies are framed by the RBI for better control over the banks.

.Economic environment         Every year RBI declares its 6 monthly policy RBI's Base Lending Rate for Banks in Effect From July 1 New falling rates will benefit all borrowers Transparency in actual lending rate Daily interest on savings: Effective rate now: 3.5% as every rupee in savings account earns interest It may make add on services costlier Increase in repo rate by 5% and another increase in reverse repo rate by 3.5% by RBI in order to monitor food inflation.

Banks having big clients or big companies have to provide services like personalized banking to their clients. professionals. traders. Banks have changed the culture of human life in India and have made life much easier for the people. consistent with social justice.Social environment • • • • Nationalization of the banks in 1969 Only big business houses and the effluent sections of the society getting benefits of banking in India To adopt the social development in the banking sector and speedy economic progress. various types of loans to farmers.g. Help economically weaker section of the society and provide need-based finance to all the sectors of the economy with flexible and liberal attitude. consumer loans etc. housing loans. • • . working women. education loans. e.

All these technological changes have forced the bankers to adopt Customer-Based Approach instead of ProductBased Approach. An era of ‘cashless society’ with ‘electronic-purse’. Use of SMS and Internet as major tool of promotions and utility to customers.Technological environment • • • • • • Much important and wider role of technology in bank’s internal control mechanisms and services offered by them. . mobile banking and Internet banking. Simplified operations and customer handling. Change of the concept of ‘branch banking’ to ‘anywhere banking’. Home banking.

2% FDI limit for banking sector In Private bank 74% of paid up capital In Nationalized Bank subject to limit of 20 per cent in total.Macro Economic Variables • • • Recession did not affect India's economy because of strict control of RBI over banks GDP share of banking sector is 10% Level of employment 852000 employees at present 46000 new jobs • • GDP GROWTH RATE DECLINE FROM JAN06 TO JAN10 IS 9.economicstimes .6%TO 7. Source of Information:

2011 . encouragement of the savings in the Budget.Major Impact of Budget 2010 on Banking Sector Union budget affects the banking sector to boost the economy by giving certain concessions or facilities.g. relaxation of the FDI limits Banking Licenses :RBI is considering extra banking licenses to private banks and also to non Banking Financial Companies Recapitalization of Regional Rural Banks (RRB): Government to provide further capital to strengthen the RRBs so that they have adequate capital base to support increased lending to the rural economy.500cr provided to ensure that the Public Sector Banks are able to attain a minimum 8 per cent Tier-I capital by March 31. For e. Public Sector Bank Capitalization : Rs.16.


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