Economic & Technological Reforms in Indian Banking System
CHAPTER I
INTRODUCTION AND RESEARCH METHODOLOGY
1.1 GENERAL INTRODUCTION OF THE PROJECT
INDIAN BANKING SECTOR
Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The oldest bank in existence in India is theState Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India 's independence, became the State Bank of India in 1955.
History
Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India.(Joint Stock Bank: A company that issues stock and requires shareholders to be held liable for the company 's debt) It was not the first though. That honor belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla.
When the American Civil War stopped the supply of cotton to Lancashire from the Confederate States, promoters opened banks to finance trading in Indian cotton. With large exposure to speculative ventures, most of the banks opened in India during that period fey and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th
INTRODUCTION AND RESEARCH METHODOLOGY
1.1 GENERAL INTRODUCTION OF THE PROJECT
INDIAN BANKING SECTOR
Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The oldest bank in existence in India is theState Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India 's independence, became the State Bank of India in 1955.
History
Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India.(Joint Stock Bank: A company that issues stock and requires shareholders to be held liable for the company 's debt) It was not the first though. That honor belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla.
When the American Civil War stopped the supply of cotton to Lancashire from the Confederate States, promoters opened banks to finance trading in Indian cotton. With large exposure to speculative ventures, most of the banks opened in India during that period fey and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th
Bibliography: Journals/E-Books/pdf 1. B.S.Bodla & Richa Verma, “Determinants of Profitability of banks in India: A Multivariate Analysis”, Journal of Services Research, Volume 6, No.-2, (Oct2006 – March2007). 2. Chanchal Chattarjee, “Future Trend and Challenges in Indian Banking: A fresh Look” The Chartered Accountant, June2009. 3. The Economic Times, Banking & Finance, 16, Feb 2012 4. The Times of India, Times Business, 16, Feb 2012. 5. Report on Trend and Progress of Banking in India, supplement to RBI Bulletin, December 2011 6. http://www.bankingawareness.com/current-affairs/economic-survey-2012-2013/ 7. http://www.icra.in/Files/ticker/Banking%20note-final.pdf 8. http://seminarprojects.com/Thread-banking-sector-reforms-full-report#ixzz1pAhAz7UG