BySant Kumar

Welcome To a World

Where

Relationship And Trust

are being sold

Banking Sector

BankThe word “Bank” originated from a Italian

word “Banko”

Word traces it’s 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).

What is

Bank

A Bank is financial institution whose primary activity 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 industry necessary to survive.

Structure of Banking in IndiaR.B.I.

ScheduledBank

Non Scheduled Banks

Scheduled Commercial

Banks

Scheduled Cooperative

Banks

Public Sector Banks

Private Sector Banks

Foreign Banks

Scheduled Urban

Cooperative Banks

Regional Rural Banks

Scheduled State

Cooperative Banks

Nationalized Banks

SBI & its Associates Banks

New Private Sector Banks

Old Private Sector Banks

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

Rural Banking

Today Indian Economy is considered as one of the most rapidly expanded one among the developing countries 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. About 43 % of Indian’s geographical area is used for agricultural activity. Agriculture account in Indian’s GDP is 18 % for year 2006-07.

Institutional Structure of Rural Banking

Structure of Rural Banking

Regional Rural Banks

State Cooperativ

e Banks

Primary Co-operative Agriculture and Rural Development Banks

Commercial

Banks

Three Tier Federal

Cooperative Bank

District Central

Cooperative Banks

Primary Agricultural

Credit Societies.

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

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.

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.

Future of

Rural Banking In

India

The rural poor still have very little access to formal finance.

India has more potentiality of banking in rural areas, where the new banks can come and reap the advantages of potentiality and can grow by developing the rural sector.

Effective Banking services

SWOT Analysis

Strength :•Competitive Environment•Merger & 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 of Market.

Threats :•Traditional Mentality of employees.•Macro Economic Policy.•Non – Performing Assets.•Foreign investment Policy.

Thriving Cities Along With

Crop 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 crop cultivation.

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 .