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Historical Background
The first bank of limited liability managed by Indians was Oudh Commercial Bank founded in 1881. Subsequently ,Punjab National Bank was established in 1894. In 1906 Swadeshi Movement encouraged the formation of a number of commercial banks .
Banking Crisis
Banking crisis during 1913-17 and the failure of 588 banks in various states during the decade ending 1949 underlined the need for regulating and controlling commercial banks. The Banking Companies Act was passed in February 1949 which was subsequently amended to read as Banking Regulation Act in 1949. The Act provided the legal framework for regulation of the banking system by the Reserve Bank of India(RBI).
Nationalisation of Banks
The Government of India nationalized 14 banks on July 19,1969 and six more on April 15,1980.
Functions of RBI
RBI regulates issue of bank notes above one rupee denomination Undertakes distribution of all currency notes and coins on behalf of the government Acts as the banker to the government of India and the state governments, commercial and cooperative banks Formulates and administers the monetary policy Maintains exchange value of rupee Represents India at the International Monetary Fund (IMF)
The following are best banks which are currently operating in India under the guidelines of
Abn Amro Bank In India Allahabad Bank In India American Express Bank In India Andhra Bank In India Bank Of India Canara Bank Central Bank Of India CITI Bank Corporation Bank HDFC Bank
HSBC Bank ICICI Bank IDBI Indian Overseas Bank Oriental Bank Of Commerce Punjab National Bank State Bank Of India (SBI) Standard Chartered Bank United Bank Of India Axis bank
Commercial Bank
Private banking Investment Banks Bank cards
Investment Services
Asset Management Hedge Fund Managers Custody services
Insurance
Insurance Brokerage Insurance Underwriting
Advisory Services
Stock brokers (private client services) and discount brokers
Reinsurance
Evolution of Industry
Flexible exchange rates Further trade liberalization in goods and services Increases in the level of FDI Trade liberalization in financial services Deregulation of financial markets both in developed and in a number of emerging countries Securitization Macroeconomic coordination and global financial stability Consolidation of financial institutions Increased mergers and acquisitions The gradual integration of stock markets around the world Internalization of the securities markets An increase in the role of corporate governance in national and international investment strategies Regional integration such as those experienced in Europe, Asia and America The Asian currency crisis and the call for a New International Financial Architecture Coordination amongst the central banks through the BIS and financial globalization are amongst some of the developments
Major Players
Global
JP Morgan Chase Bank of America HSBC Citigroup Deutsche Bank Goldman Sachs Morgan Stanley Merrill Lynch BNP Paribas
Indian
SBI ICICI PNB HDFC Bank of Baroda Corporation Bank IDBI UTI
Market Share
Top ten banking groups in the world ranked by tier 1 capital
Tier 1 Capital (US$ billions)
73 69 67 64 63 43 40 39 36 35
Rank 1 2 3 4 5 6 7 8 9 10
Company Citigroup JP Morgan Chase HSBC Bank of America Credit Agricole Group Royal Bank of Scotland Mitsubishi Tokyo Financial Group Mizuho Financial Group HBOS BNP Paribas
High
ABN Amro
HDFC
IndusInd Bank
Service Quality
Bank of India
PNB Andhra Bank Canara Bank Co-operative Banks
Low
Rural Banks
Rural
Urban