34487504 Rural Banking in India

8/6/2019 34487504 Rural Banking in India

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By

Sant Kumar


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Welcome

To a World

Where

Relationship And Trust

are being sold

Banking Sector


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Bank

The word Bank originated from a Italian

word Banko

Word traces its origin back to the ancient

Roman Empire

First modern bank was founded in Italy in

Genoa in 1906, its name was

Banco Di San Giorgio (Bank of St. George).


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Whatis

Bank

A Bank is financial institution whose primaryactivity is to act as payment agent for customers, and to borrow land.

Now banking is a service industry. In India

they are a major part of the financial sector

and serve as life blood for the whole industrynecessary to survive.


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Structure of Banking in IndiaR.B.I.

Scheduled

Bank

Non Scheduled

Banks

Scheduled

Commercial

Banks

Scheduled

Cooperative

Banks

PublicSector

Banks

PrivateSector

Banks

ForeignBanks

Scheduled

UrbanCooperative

Banks

RegionalRural

Banks

Scheduled

StateCooperative

Banks

Nationa

lizedBanks

SBI & its

Associates Banks

New Private

Sector Banks

Old Private

Sector Banks


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Indian Banks recording a growth of 32.22 % in last financial year

Performance Highlights

Particulars 2007-08( Crores) 2006-07(Crores) Growth (%)

Net profit 1008.74 759.77 32.77

Operating Profit 1659.30 1358.59 22.13

Total Deposits 13955 61046 29.63

Net NPA 0.24 % 0.35 %

Education Loan Stood at Rs. 1149.33 Crores as on 31/03/08 23.63

Personal Loans 7860.28 6250.93 25.74

Home Loans 4188.07 3501.47 19.60

Agricultural

Credit

6294 4814 30.73

Over All Business 101274 76593 32.22


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Rural Banking

Today Indian Economy is considered as one of the

most rapidly expanded one among the developingcountries of the world.

Bank located in rural areas come up with diverse

programmes to bring changes in the life of rural

people by engaging them in self employment

schemes.

Agriculture in India is one of the most important

sectors of its economy. About43 % of Indiansgeographical area is used for agricultural activity.

Agriculture account in Indians GDP is 18 % for year

2006-07.


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Institutional Structure of Rural Banking

Structure ofRural Banking

RegionalRural

Banks

StateCooperativ

e Banks

Primary Co-operative

Agriculture and Rural

Development Banks

Commercial

Banks

Three TierFederal

Cooperative

Bank

DistrictCentral

Cooperative

Banks

PrimaryAgricultural

Credit

Societies.


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Evaluation of Rural banking in India.

Co-operative credit institutions.

Commercial Banks.

Regional Rural Banks. National Rural Banks.

Reserve Bank of India.

Nabard. Kissan Credit Cards


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Banking Services&

Rural Entrepreneurship

The Banking Sector have transformed the farmers of

yesterday to a top conscious entrepreneur today and

also contributing his part in the development of national

economy.

Besides the government schemes and programmes the

banking services came out with their own programmes

in promoting the interest of rural entrepreneurship

amongst these people.


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Importance

of

Rural Banking

A case of Deepa Shrivaswani from a remote

village in Tamil Nadu.

ICICI Bank internet Kiosk Scheme can mean

financial empowerment for rural people. In a way

it can be described as a backdoor entry into

banking.


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Future

ofRural Banking

In

India

The rural poor still have very little access to formalfinance.

India has more potentiality of banking in rural areas,

where the new banks can come and reap theadvantages of potentiality and can grow bydeveloping the rural sector.

Effective Banking services


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SWOT Analysis

Strength :Competitive EnvironmentMerger & Acquisition

Mobile banking or E banking.

Weaknesses :Monetary & Credit Policy

Lack of customer Care Services.

Recovery of loans.

Opportunities :Undeveloped rural Area.More people are getting familiarize

with the banking.

Potentiality ofMarket.

Threats :TraditionalMentality of employees.Macro Economic Policy.

Non Performing Assets.

Foreign investment Policy.


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Thriving Cities

Along WithCrop Cultivation.

Through the active participation of the banking services,

it will not be out of place to mention that, the villages can

be transformed into thriving cities along with cropcultivation.

Complete waiver of loans for marginal farmers

One time settlement of loans for other farmers

A target of Rs. 2.80 lakh crore for agriculture credit

set for the coming year

Loan Waiver scheme to involve loan liability of

Rs. 60,000 Crore .


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34487504 Rural Banking in India

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