Banking & Insurance in India

State Bank of India (SBI) - The Largest India Bank

2011-05-09T05:11:00.000-07:00

If talked about the Indian banking and financial services company, State Bank of India, having its headquarters in Mumbai, commonly known as SBI, is the largest one considering its turnover and total assets. If the number of branches of the Banks is considered State Bank of India (SBI) is the largest Bank in the world. There are more than 16000 branches of State Bank of India inclusive of about 130 overseas branches. It has a vast range of banking products including products aimed at non-resident Indians (NRIs). As regards the reputation of State Bank of India, it is the 29th most reputed company in the world.

It is very interesting to know about the history of State Bank of India as SBI is the oldest commercial bank in the Indian Subcontinent and it traces its ancestry to British India. The roots of the State Bank of India go to the first decade of 19th century, when the Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of Bengal was one of three Presidency banks, the other two being the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843). These three banks amalgamated as Imperial Bank. The government of India nationalized the Imperial Bank of India in 1955 and renamed it the State Bank of India. In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, enabling the State Bank of India to take over eight former state-associated banks as its subsidiaries.

SBI has following associate banks:

    * State Bank of Bikaner & Jaipur
    * State Bank of Hyderabad
    * State Bank of Mysore
    * State Bank of Patiala
    * State Bank of Travancore
    * State Bank of Saurashtra - merged with SBI in 2008.
    * State Bank of Indore - merged with SBI in 2010.

Banks in India - List of Nationalised Banks, Foreign Banks and Private Banks

2011-05-07T22:22:00.000-07:00

The Banks in India can be divided into three categories viz. Nationalised Banks, Private Banks and Foreign Banks.

Nationalised Banks of India

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab and Sind Bank

Punjab National Bank

State Bank of Bikaner

State Bank of Hyderabad

State Bank of Mysore

State Bank of Patiala

State Bank of Saurashtra

State Bank of Travancore

Syndicate Bank

The State Bank of India

The State Bank of Indore

Uco Bank

Union Bank of India

United Bank of India

Vijaya Bank

Private Banks of India

Bank of Punjab

Bank of Rajasthan

Catholic Syrian Bank

Centurion Bank

City Union Bank

Development Credit Bank

Dhanalakshmi Bank

Federal Bank

HDFC Bank

ICICI Bank

IDBI Bank

Indusind Bank

ING Vyasya

Jammu and Kashmir Bank

Karnataka Bank

Karur Vysya Bank

Laxmi Villas Bank

Nainital Bank Ltd

Sbi Commercial and International Bank Ltd

South Indian Bank

Tamilnad Mercantile Band Ltd

The Ratnakar Bank Ltd

United Western Bank

Uti Bank

Foreign Banks India

ABN AMRO Bank

Abu Dhabi Commercial Bank

Bank of Ceylon

BNP Paribas Bank

Citi Bank

China Trust Commercial Bank

Deutsche Bank

HSBC Bank

JPMorgan Chase Bank

Standard Chartered Bank

Scotia Bank

Taib Bank

Banks in India in modern time

2011-05-07T04:51:00.000-07:00

Modern time has introduced many more products and facilities in the banking sector in its reforms measure. In 1991, Narsimhamam committee, under the chairmanship of M Narasimham, was set up to work for the liberalisation of banking practices.

The country is swamped with foreign banks and their ATM stations. To meet the competitions, satisfactory customer service has become essential for banks. Phone banking and net banking are introduced. As time has more value than money, the entire system has become more convenient and swift.

For the past some decades banking system in India has several outstanding achievements to its credit. The most striking is its widespread reach. It is no longer confined to only metropolitans or cosmopolitans in India but people residing in villages in India are also availing of the banking facilities. It can be said that Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process.

Now a days an account holder have not to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has his own choices. Money can transferred from one branch to another electronically in a moment. Account holder of a bank can transact his account from his own computer or mobile with the help of net banking or mobile banking.

Now banking in India has become a pleasant feeling for account holders.

Banks in India after independence

2011-05-06T21:57:00.001-07:00

Banking Sector in India reformed much after independence due to the major steps taken by Indian Government. To provide extensive banking facilities in rural and semi-urban areas, Imperial Bank was changed into State Bank of India and it became the first nationalised bank of India. Thereafter State bank of India started to act as the principal agent of Reserve Bank of India and to handle banking transactions of the Union and State Governments all over the country.

In 1960 seven subsidiary banks of State Bank of India were nationalised.

On 19th July, 1969, major process of nationalisation was carried out and 14 major commercial banks in the country were nationalised. Second phase of nationalisation Indian Banking Sector Reform was carried out in 1980 with seven more banks. As a result 80% of the banking segment in India came under Government ownership.

The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country:

1949 : Enactment of Banking Regulation Act.
1955 : Nationalisation of State Bank of India.
1959 : Nationalisation of SBI subsidiaries.
1961 : Insurance cover extended to deposits.
1969 : Nationalisation of 14 major banks.
1971 : Creation of credit guarantee corporation.
1975 : Creation of regional rural banks.
1980 : Nationalisation of seven banks with deposits over 200 crore.

Due to the nationalisation of banks, the branches of the public sector banks in India rose to approximately 800% in deposits whereas advances took a huge jump by 11,000%.

The nationalisation of the banks by Government of India gave the public implicit faith and immense confidence about the sustainability of these institutions.

How the Banks were set up in India

2011-05-06T05:49:00.000-07:00

In modern days nobody can imagine life without banks as banks have become essential part of our daily life. But before 1786, there was no any bank in India. In the year 1786 East India Company first time set up The General Bank of India and that was the beginning of banking in India. Thereafter came Bank of Hindustan and Bengal Bank. Bank of Bengal, Bank of Bombay and Bank of Madras were established by East India Company in years 1809, 1840 and 1843 respectively. These banks were called Presidency Banks. In the year 1920 Imperial Bank of India was established by amalgamation of these three banks. Imperial Bank of India started as private shareholders banks and most of its shareholders were Europeans.

In the years 1865 and 1894 Allahabad Bank and Punjab National Bank Ltd. were set up. For the period from 1906 to 1913 Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of India was established in 1935. After that about 1100 banks, mostly small, started functioning in India. Some of them experienced periodic failures between 1913 and 1948.

Due to increase in the number of banks in India, it became essential to streamline the functioning and activities of commercial banks and the Government of India came up with The Banking Companies Act, 1949. As per amending Act of 1965 (Act No. 23 of 1965) Companies Act, 1949 changed as Banking Regulation Act 1949. . Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority.

Though the number of banks were increasing, public has lesser confidence in the banks in those days and deposit mobilisation was slow. The savings bank facility provided by the Postal department was treated as safer in comparison of that provided by the banks.