Banking Operation PPT Presentation

Presentation on
Public Sector & Private Sector Bank.
Presented To:
Prof. Prasad Joshi
By:
Somnath Pagar
Abhishek Mahale
What is Bank?
Bank is a lawful organization, which accepts
deposits that can be withdrawn on demand. It also
lends money to individuals and business houses that
need it.
Types of Bank
Commercial Bank
DefinitionCommercial Banks are banking institutions that accept
deposits and grant short-term, medium and long term loans and
advances to their customers.
Public sector banks
Majority stake is held by the Government of India or
Reserve Bank of India.
Ex SBI, Bank of Baroda, Dena Bank, etc.
Private sector banks
Majority of share capital of the bank is held by private
individuals, Registered as companies with limited liability.
Ex ICICI Bank, HDFC Bank, YES Bank etc.
Market Shares of Indian Financial Sectors
6% 4%
8%
19%
63%
Banks
Insurance Companies
Non-Banking Financial
Institutions
Mutual Funds
Provident And Pension
Funds
*Source: Banking Structure Report by- D.

Subbarao.
Market Shares of Indian Banking Sectors

80
70
60
50
40
30
20
10
0
67.2
18.7
6.5
2.7
3.4
1.5
*Source: Banking Structure Report by- D.

Subbarao.
Public & Private Sector Banking

Structure
State Bank of India
Public Sector Banks (26)
Associates Banks (6)

Nationalized (19)
Private Sector Banks (20+2)
Old Private Sector Banks (13)

New Private Sector Banks (7+2)
New Banking Licenses issued by RBI in 2014

Infrastructure Development Finance Company(IDFC)
Bandhan Micro-finance
Licensing Policy
The RBI issues bank licences under section 22 of the Banking Regulation
Act, 1949. The licence enables the bank to do banking and other financial
services activities listed in the Banking Regulation Act.
For Public Sector & Private Sector Banks1) Eligible Promoters
2) Foreign shareholding in the bank Not exceed 49 %.
3) Capital Requirement
Minimum capital requirement Rs 1 Billion(1991)
Legal Framework for Banking

At present, commercial banks are governed by the following six statutes The Banking Regulation Act, 1949
Banking Companies (Acquisition & Transfer of Undertaking) Act, 1970/1980
State Bank of India Act 1955
State Bank of India (Subsidiary Banks) Act, 1959
Industrial Development Bank (Transfer of Undertaking and Repeal) Act, 2003 and
The Companies Act, 2013 ( Old-1956).
Presence of Indian Public & Private banks abroad

Indian banks are allowed to expand overseas under a policy framework of
Reserve Bank of India and Government of India. In February 2005, RBI had
come out with a press release stating that the applications from Indian banks for
setting up representative offices / branches / subsidiarys outside India.
State Bank of India accounted for the largest share (29.71%) in the total assets of
the overseas branches of Indian banks as on March 31, 2013.
Bank of Baroda with 20.53%
Bank of India with 16.08% and
ICICI Bank with 15.47%.
Spread across
17 countries.
Comparative Analysis:
Public vs. Private Sector Banks
Return on Assets and Return on Equity
Bank Sector
Return on Assets
Return on Equity
2012-13
2013-14*
2012-13
2013-14*
SBI
0.78
0.89
13.24
15.25
Nationalised Banks*
0.74
0.88
12.34
14.65
SBI Group
0.88
0.94
15.29
14.95
Old Pvt. Sector Banks
1.26
1.42
16.22
17.05
New Pvt. Sector Banks
1.74
1.86
16.51
17.94
Public Sector Banks
Private Sector banks
Source: RBI Published data

Notes: 1. Return on Assets = Net profit/Average total assets.
2. Return on Equity = Net profit/Average total equity.
3. *The data for 2014 is provisional.
4. * Nationalised banks include IDBI Bank Ltd.
Priority Sector Advances

(Amount in
billion)
Notes: 1. Figures in brackets are percentages to ANBC or CE of

OBE, whichever is higher, in the respective groups.
2. The data for 2014 is provisional.
Source: RBI Annual Report 2014.
Ranking of Indian banks in the global league

Name of Indian Bank
Ranking
SBI
38
ICICI Bank
99
HDFC Bank
126
Axis bank
175
PNB
189
BOB(Baroda)
206
*Source: http://brandirectory.com/league_tables/table/banking-500-2013
Thank You!

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Banking Operation PPT Presentation

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Presentation on

Public Sector & Private Sector Bank.

Prof. Prasad Joshi

Market Shares of Indian Financial Sectors

*Source: Banking Structure Report by- D.

Market Shares of Indian Banking Sectors

*Source: Banking Structure Report by- D.

Public & Private Sector Banking

Associates Banks (6)

Private Sector Banks (20+2)

Old Private Sector Banks (13)

New Banking Licenses issued by RBI in 2014

Legal Framework for Banking

Presence of Indian Public & Private banks abroad

Old Pvt. Sector Banks

New Pvt. Sector Banks

Public Sector Banks

Private Sector banks

Source: RBI Published data

Priority Sector Advances

Notes: 1. Figures in brackets are percentages to ANBC or CE of

Ranking of Indian banks in the global league

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