banks

:- At the time of bank nationalization, it was clearly conceded that the commercial banks did not have the necessary experience or the personnel to deal with the farmers directly. While the co-operative had been specializing in rural credit since the beginning of the century. Even then the...

The commercial banks in India have long confined their operations to urban areas, receiving deposits from the urban public and financing trade and industry in urban public and financing trade and industry in urban areas. Commercial banks are extending financial support to agriculture both...

The Structure of LDBs:- The long term credit structure consists of the central land development banks (generally one for each State) and primary land development banks. In some States, there are no primary land developments banks but in their place, there are branches of central land...

The need for long-term loan is being satisfied by land development banks (formerly the were called land mortgage banks). The objective of such banks is to provide long-term credit to the cultivators against the mortgage of their lands. The loans from the land development banks are quite cheap...

Co-operative Central Banks: These are federations of primary credit societies in specified areas normally extending to the whole district meance they are sometimes called as district co-operative banks. These banks have a few private individuals as shareholders who provide both finance...

Instruments of Corporate Governance in Banks Financial statements -Balance sheet and Notes on Account Annual General Body Meeting – report to the shareholders Share holder information disclosure norms The Vision and the Mission statements – giving directions to the bank. Code of conduct...

Corporate Governance in Indian Banks Although the subject of corporate governance has received a lot of attention in recent times in India, corporate governance issues and practices by Indian banks have received only a scanty notice. The question of corporate governance in banks is important...

Why Corporate Governance in Banks? If we examine the need for improving corporate governance in banks, two reasons stand out: Banks exist because they are willing to take on and manage risks. Besides, with the rapid pace of financial innovation and globalization, the face of banking...

Corporate Governance in Banks Banks ,in a broad sense, are institutions whose business is handling other people’s money. A joint stock bank, also known as commercial bank, is a company whose business is banking. These are more particularly institutions that deal directly with the general...

GTB adds to the muddle created by co-op banks The virtual collapse of the Global Trust Bank (GTB) has once again eroded depositor confidence in the banking system, already hit by several scams involving cooperative banks during 2002-04. While many of the cooperative banks are on the road to...

Types of retail banks • Commercial bank: the term used for a normal bank to distinguish it from an investment bank. After the Great Depression, the U.S. Congress required that banks only engage in banking activities, whereas investment banks were limited to capital markets activities...

Types of investment banks • Investment banks "underwrite" (guarantee the sale of) stock and bond issues, trade for their own accounts, make markets, and advise corporations on capital markets activities such as mergers and acquisitions. • Merchant banks were traditionally banks, which...

ROLE OF BANKS IN A DEVELOPING ECONOMY----- Banks play a very useful and dynamic role in the economic life of every modern state. A study of the economic history of western country shows that without the evolution of commercial banks in the 18th and 19th centuries, the industrial revolution...

Banks in the economy:- Role in the money supply A bank raises funds by attracting deposits, borrowing money in the inter-bank market, or issuing financial instruments in the money market or a capital market. The bank then lends out most of these funds to borrowers. However, it would not be...

Unit Banks and Branch licensing Banks which have been organised as unit banks and have been extended relaxation in the entry point capital would be eligible to open branches only after augmenting their owned funds to the level required for opening a new bank (other than a unit bank) at the...

Policy on Unlicensed Banks, Unit Banks and Branch Licensing Licensed urban co-operative banks, which are not classified as weak / sick may apply for allotment of centres under the Annual Action Plan (AAP) to the Reserve Bank of India. The Annual Action Plan should be for a period of twelve...

Licensing Policy of New Urban Co-operative Banks At the inception, financial soundness of the bank can be ensured by adequate entry point norms. These norms have to be evolved taking into account relevant criteria like the location of the bank and the area of its operation. Entry point norms...

The objective of co-operative banking is to create enduring and sustainable financial institutions, which remain responsive to the credit needs of the weaker sections. Concerns have been expressed that the financial health of a large number of co-operative credit institutions is extremely...

i. In terms of Section 23 of B.R.Act, 1949 (AACS) the RBI has the authority to issue a branch license to an urban cooperative bank and under the existing policy, RBI issues branch license after convincing itself about the financial strength of the UCB. Strangely, in some states, the UCBs are...

Three authorities, Central and State Governments and RBI, are presently involved in regulating, supervising and/or administering UCBs. There are as many as 2,084 UCBs of which 51 are scheduled and the rest are non-scheduled UCBs. In view of their large number as well as their dispersed and local...