Synopsis

Introduction
Banking System is in vogue in one form or the other since the time immemorial. It is presumed that the banking system would have come into the existence when the monetary system became prevalent. Need would have arisen for keeping the money at safe place, borrowing / lending of money, delivery of funds to the other places, etc. Trend of such banking changed with the change of needs of the society. It is said that golden era of human civilization started with beginning of nineteenth century. During this period lot of technological advancements and inventions took place which positively touched almost all aspects of day to day life of a person. The said inventions brought improvements in banking industry too. Due to advancement in technology working of the Banks has under gone sea change. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now all the banking activities can be done at any day and any time with a click of mouse. Banks work in 24 x 7 environment as whole system has become globalised. Example of the same is that when Japanese banks close, American banks start functioning. If

Japanese banks do not work after their banking hours, they would lag behind and would not be able to catch with the globalised transactions. Now coming to Indian Banking Industry, it is noticed that the banks here used to work as a financial intermediaries before the pre liberalization era, which remained in existence till the year 1990 - 91. Indian Government realised importance of globalistion of economy and introduced reforms in 1991 - 92 which had far reaching impacts not only on the Indian economy but also on working of the Banks. In this Project Report, attempt has been made to study, as to how the Indian Banking Industry has reached at its present stage since the year 1949, when the Banking Regulation Act was passed in the year 1949.

Aim of the Study : i) (1) To study functioning of the Banks during the pre

liberalization era which existed till the financial year 1990 -91 . (2) To examine what developments took place in the Indian banking industry when the reforms were introduced in the year 1991 - 92 . (3) To analyse whether the banks have been able to develop new markets for themselves. (4) To determine whether the Banks have geared themselves to compete with private banks and / or international banks having operations in India.

(6) To determine whether the Banks have been able to increase their turnover and profits.
(ii) (1) To determine if the Banks have started business on their own

abilities rather than depending upon Government support. (2) To determine Banks position vis a vis Prudential Norms / Guidelines issued by the Reserve Bank of India from time to time. (3) To determine the manner and prudence of deployment of public funds. (4) To know the effect of Basel II norms, which the all the Banks are expected to adopt . (5) To know what are the trends prevailing in the Retail Banking Sector, which still remains the back bone of the Indian Banking Sector. (6) To determine the issues that remain critical to Indian Banking Industry.

Methodology : There are number of Banks which operate from different locations. Corporation Bank and Punjab National Bank have the nearest located branches to my residence. Visiting those branches for interaction with officials of those Banks is required. During the visit, the data pertaining to the Company would easily be collected from their Offices and their Website. Financial data would collected from their Annual Reports and various write ups published in its website. The period of study spans from 1947 and onwards. Information pertaining

to the main Banking System will be collected with reference to the data books, Annual Budget / Reports and other Budget documents pertaining to Ministry of Finance and also from the Reserve bank of India site. Data analysis is being done with the help of various statistical techniques.

Sources of Data Collection : Primary Data would be collected from following sources : Website of Reserve Bank of India Website of Corporation Bank Website of Punjab National Bank Brochures provided by Corporation & Punjab National Bank On the other hand, secondary data is proposed to be collected from the following sources : 1) www.google.co.in 2) Journal Chartered Secretary published by The Institute of Company Secretaries of India 3) Publications by ICRA Ltd., for Basel II norms.

Limitations : The result of the study depends on the authenticity of data collected from secondary sources. The data published in different websites, in the Chartered Secretary and in ICRAs publications may or may not

be authentic or may have been published by the in some other contexts.

Crux of the Project Report : Crux of this study is that scenario of the Indian Banking Industry has completely changed since independence. The Indian Banks were earlier working only as intermediaries and conduits of the Government in a highly regulated environment. However post liberalization, the Government has loosened its control to the large extent due to which the Banks are now able to work as commercial entities. They are now aware of the challenges at domestic as well as at international level and they are ready to face them with vigour.

Conclusion : It has been noticed that there has been shift in the way and style and functioning of the Banks. Technological advancements have speeded up the banking transactions manifold. Simply from the retail banking, the Banks have shifted to fee based banking, treasury activities, merchant banking activities, e banking activities, etc. Attitude of the Bank employees has changed and they are also focusing at increase in profits of Banks. They also consider themselves as partners in growth alongwith the Government. This is a welcome change.