Micro Finance

A Framework for Studying

Development Banking: Need,
Evolution of Development Banking
Institutions and its implication on
Development (session 1 & 2)

NAVEEN KUMAR K
Development Banking
NEED
SCOPE
IMPORTANCE
 Evolution of Development
Banking
Jan 1773 when the then Governor of Bengal, Warren Hastings,
recommended the establishment of a General Bank in Bengal and
Bihar.
The bank was set up in 1773, but it proved to be only a short-lived
experiment.
In India, banking on Western lines started when the first joint stock
bank by the name of 'Bank of Hindustan' was set up at Calcutta under
European management . But this Bank also failed.
It was with the setting up of three Presidency Banks' at Bengal
(1806). Bombay (1840) and Madras(1843) that modern banking got
some impetus.
Oudh Commercial Bank set up in 1881 was the first purely Indian
Timeline of Development banking in
India