Ownership and performance of the Indian banking industry

revisited by Saumitra N. Bhaduri

Publisher: Madras School of Economics in Chennai

Written in English
Published: Pages: 24 Downloads: 208
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Edition Notes

StatementSaumitra N. Bhaduri and K.R. Shanmugam
SeriesWorking paper -- 33/2008
ContributionsShanmugam, K. R., Madras School of Economics
Classifications
LC ClassificationsHG3284 (H8)+
The Physical Object
Pagination24 p. ;
Number of Pages24
ID Numbers
Open LibraryOL24454234M
LC Control Number2010319800

The Rise, Progress, and Present Condition of Banking In India. Banking in India, in the modern sense, originated in the last decade of the 18th century. The largest bank, and the oldest still in existence, is the State Bank of India. The Indian banking sector is broadly classified into scheduled and non-scheduled banks. Modern banking in India originated in the last decade of the 18th century. Among the first banks were the Bank of Hindustan, which was established in and liquidated in –32; and the General Bank of India, established in but failed in The largest and the oldest bank which is still in existence is the State Bank of India (S.B.I). It originated and started working as . performance, Tobin’s Q model (price/Book ratio) which measures market-based performance and Return on equity (ROE) which is a key profitability ratio that investors use to measure of the amount of a Bank's income that is returned as shareholder equity have been used to measure financial performance of the selected private : N. S. Nataraja, Nagaraja Rao Chilale, L. Ganesh.   All the banks of India charge interest rates on the basis of RBI directives. There is also competition among banks in terms of annual fees for services like credit cards, DMAT etc. Interest charged on home loans and car loans are another important pricing aspect of banking industry. In banking sector it is very important to understand that the.

The Impact of Information Technology on the Bank Performance (Nigeria in Perspectives) - Essays - Kozak, S. () The role of information technology in the profit and cost efficiency improvements of the banking sector, Journal of Cited by: The banking sector is highly concentrated with the largest two banks (Bank Muscat and the National Bank of Oman) controlling more than 55 percent of the sector’s assets. Qatar. The banking system in Qatar is the third largest after Bahrain and the U.A.E., with assets around 94 percent of GDP at endFile Size: 1MB. Banks in India have not experienced a worse year in the past two decades than what it had encountered in the year that had just passed by. The sector as a whole has seen losses for the first time since , thanks to the huge overhang of stress especially for the stateowned lenders which cumulatively control two-thirds of Indian : Atmadip Ray. Onut, Erdem I ‘Customer Relationship Management in Banking Sector and A Model Design for Banking Performance Enhancement’. Coltman T., ‘Can Superior CRM Capabilities Improve Performance in Banking’, Journal of Financial Services Marketing, Vol,2 ().

The Standing Committee on Finance (Chair: M. Veerappa Moily) submitted its report on the Banking Sector in India – Issues, Challenges and the Way Forward on Aug Credit and deposit growth in banks have recently been slow. High volumes of non-performing assets (NPAs) in banks have eroded their capital base, and restricted their ability to lend. The present study attempts to evaluate the financial performance of selected Indian commercial banks for the period from /13 to / The study comprises 16 commercial banks, 11 representing public sector and 5 from private sector, and the financial performance of these banks are analysed using the financial ratios. The study shows that the financial performance Cited by: 1. 3. Macroeconomic Environment and the Indian Banking System 14 4. Small Banks and Financial Inclusion 18 5. Banking Models, Structures and Licensing Policy 25 6. Consolidation and Emergence of Large Banks and Legal Framework for Banks 44 7. Cross-border Banking Presence 55 8. Ownership of Indian Banks- Issues 61 Size: KB. Baker Tilly’s banking industry benchmarks report was created with you in mind. It provides definitions of each benchmark and the most important KPIs in an easy-to-read format. Use it as a management resource to evaluate your financial institution’s performance in key areas, including: Loans to deposits. Return on average equity.

Ownership and performance of the Indian banking industry by Saumitra N. Bhaduri Download PDF EPUB FB2

This study contributes to the ownership–performance literature by analysing the issue for the Indian banking sector during the post reform period (–). Results indicate that Author: Saumitra N Bhaduri, KR Shanmugam. Since publicly owned banks still perform poorly, privatisation seems to be an effective policy in improving the performance of Indian banks.

This study contributes to the ownership–performance literature by analysing the issue for the Indian banking sector during the post reform period (–). Our study of the Indian banking industry confirms our expectation that, in the absence of well-functioning capital markets, there may not be significant differences in the performance of private and public enterprises.

Our analysis highlights the importance of creating appropriate institutions prior to pursuing privatization in developing by: The banking industry in India has a huge canvas of history, which covers the traditional banking practices from the time of Britishers to the reforms period, nationalization to privatization of banks and now increasing numbers of foreign banks in India.

Therefore, Banking in India has been through a long journey. observable relationship between ownership and performance in the Indian banking industry. The organization of the paper is as follows: Section 2 sets out the econometric specification and describes the data.

Section 3 discusses the results. Section 4 concludes. this issue is “Issues/Challenges of Indian Banking”. The first article is the key note address by Dr.

Y.V. Reddy, Former Governor, Reserve Bank of India, in the Bankers’ Meet organised by IIBF at Hyderabad on 8th May The topic of the address was “Financial Sector Reforms: A Review and Tasks Ahead”. Financial Reform, Ownership and Performance in Banking Industry: The Case of Bangladesh Article (PDF Available) August with Reads How we measure 'reads'.

Indian Banking Sector – An Overview Through a huge number of banks, the system of Indian banking is expressed by means of combined ownership. The sector of commercial banking consists of 33 foreign banks, 40 private sector banks, and 27 public sector banks where majority ownership is included by the government.

financial sector reforms () phase, the performance and strength of the banking structure improved perceptibly. Financial soundness of the Indian commercial banking system compares favourably with most of the advanced and emerging countries. India cannot have a healthy economy without a sound and effective banking Size: KB.

Indian ownership and many more Indian commercial banks such as Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were established between and By the end of Decemberthe total number of reporting commercial banks in the country reached 56 comprising 3 Presidency banks, 18 Class „A‟File Size: KB.

Chapter - 1 Overview of Banking Industry in India Introduction: Industry scenario of Indian Banking Industry Current Scenario Aggregate Performance of the Banking Industry o Interest Rate Scene: o Governmental Policy both of which were founded under private ownership.

The Reserve Bank of India formally took on the responsibility of File Size: KB. In India Non-performing assets are one of the major concerns for is the best indicator for the health of the banking industry.

NPAs reflect the performances of are the primary indicators of credit risk. NPAs are an inevitable burden on the banking industry. Hence the success of a bank depends upon methods of managing NPAs. 1 Chapter 1: Introduction In the last decade the banking industry of India has experienced exponential growth.

The CNX Bank Index1 has grown by more than % in absolute terms, and at a compounded annual growth rate of over 25% in the period from –while the Sensex2 grew at a compounded annual growth rate of 14%.

The banking System in India is dominated by nationalized banks. The performance of the banking sector is more closely linked to the economy than perhaps that of any other sector. The growth of the Indian economy is estimated to have slowed down significantly.

Enhancing efficiency and performance of public sector banks (PSBs) is a key objective of economic reforms in many countries including India. It is believed that private ownership helps improve efficiency and performance. Accordingly, the Indian government started diluting its equity in PSBs from early s in a phased : Milind Sathye.

The Indian Banking industry, which is governed by the Banking Regulation Act of India, can be broadly classified into two major categories, non-scheduled banks and scheduled banks. Scheduled banks comprise commercial banks and the co-operative banks.

Evolution of the Indian Banking Industry The first bank in India, called The General Bank of India was established in the year The East India Company established The Bank of Bengal/Calcutta (), Bank of Bombay () and Bank of Madras ().

The next bank was Bank of Hindustan which was established in These three individual units. Within the European banking industry different ownership structures coexist: privately owned stock banks (POBs), mutual banks (MBs), and government-owned banks (GOBs).

1 POBs, in turn, have different degrees of ownership concentration. Although their roots are different, large MBs, GOBs, and POBs (with different ownership concentration) have typically evolved to a Cited by: CAMELS' ANALYSIS IN BANKING INDUSTRY Article PDF Available.

A CAMELS Analy sis of the Indian Banking Industry. The big book of key performance indicators. Web analytics demystified. The Indian banking system consists of 20 public sector banks, 22 private sector banks, 44 foreign banks, 44 regional rural banks, 1, urban cooperative banks rural cooperative banks, in addition to cooperative credit institutions.

As on Mathe total number of ATMs in India. The Imperial Bank of India subsequently named the State Bank of India. The first Indian-owned Allahabad Bank was set up in in Allahabad.

Inthe Punjab National Bank was established in ORIGIN AND DEVELOPMENT OF BANKING INDUSTRY IN INDIA Early Periods Commercial banking of the western type is a recent development in India.

But banking was not unknown to India. From very ancient times indigenous banking and money lending existed in India in the form of family or individual business. Modern banking can be traced to medieval and early Renaissance Italy. Let’s take a moment to look at a few Key Performance Indicator examples for the banking industry you should add to your benchmarking and business intelligence efforts, taken with a historical perspective.

to enter the market, the Indian financial system retains a substantive public sector ownership. In fact, PSBs dominate the Indian banking sector and, as of Marchthey accounted for nearly percent of aggregate assets.

This mixed model of public and private ownership, popular in. As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalised and well-regulated.

The financial and economic conditions in the country are far superior to any other country in the world. Credit, market and liquidity risk studies suggest that Indian banks are. The banking sector has undergone a complex, but comprehensive phase of restructuring sincewith a view to make it sound, efficient, and at the same time forging its links firmly with the real sector for promotion of savings, investment and growth.

Some improvement in the Indian banking sector has been seen after the by:   The purpose of this paper is to estimate the relative efficiencies of banks of the Indian domestic banking sector by employing various models of data envelopment analysis (DEA) using the panel data of the recent decade (–).

The paper provides a comparative analysis of these models based on the efficiency outputs. It compares the performance of banks based on their ownership Author: Roopteja Tamatam, Pankaj Dutta, Goutam Dutta, Stefan Lessmann.

STATEMENT OF THE PROBLEM The study of fundamental analysis of banking industry in India Infoline ltd is to assess the performance of banking industry and select the most performing banking companies through the analysis of macro and micro variables that affects the performance of particular company.

We will be publishing 3 articles on the Indian Banking sector, starting with the first article we will cover banking related terms and definitions like what are the different types of banks, Basel accords, performance related metrics (CASA ratio, ROA & ROE of banks) and various solvency (capital adequacy), and liquidity ratios.

Performance is a developing concept and why certain studies conducted in context to the performance based value added reporting to the Indian industry sector. The researcher has studied out the works had been done under these sorts of File Size: KB. The banking industry in India has undergone sea change post independence.

More recently, liberalization, the opening up of the economy in the s and the government’s decision to privatize banks by reduction in state ownership culminated in the banking reforms based on the recommendations of the Narasimham by: 5.CiteScore: ℹ CiteScore: CiteScore measures the average citations received per document published in this title.

CiteScore values are based on citation counts in a given year (e.g. ) to documents published in three previous calendar years (e.g. – 14), divided by the number of documents in these three previous years (e.g.

– 14).Despite this overall optimistic picture for the global banking industry, uncertainties loom on the horizon. Real GDP growth forecasts from the International Monetary Fund (IMF) point to a deceleration in all regions, including China and Emerging Asia (figure 2).

In the latest forecast, Deloitte economists are predicting a 25 percent probability.