Recent Trends in Commercial Banks
Banking sector is the heart part of the economy of our country. Indian banking system
has been improved after independence particularly after Nationalization. In 1969, 14 banks were
nationalized followed by 6 banks in 1980. Banking field gets it developme nt in the
multidimensional way to global financial integration. The banking sector was computerized in
1985. Automation of technology has been adopted because of the growth of information
technology. Development of banking will be based on the innovative services and products in its
reforms with the recent trends.
REFORMS IN SERVICES AND ITS PRODUCTS
Banking sector has a dominant role to play in promotion of agriculture, industry trade,
commerce and prosperity of the people; also it is an effective instrument for economic
development. In the era of globalization of trade, the role of banks will remain highly
pronounced. India foreign exchange reserves have crossed us 65 billion.
RBI had given KMFL( kotak Mahindra finace ltd. An approval to set up a bank. It will be
the first company in india,converted into a bank. RBI is ensuring that citizens have clean money.
In January 1999, governer announced aclean notes policy to destroy the soiled notes and issue
fresh notes. It also permits foreign direct investment in provate banks, which results in increase
in operating efficiency. RBI instructs the banks including SBI to submit a report regarding the
transaction over 10 lakhs under the principles of know your customers.
Banks priority lending up to 40% of the total advances were mandated towards
agriculture ,small scale industries and small business enterprises with concessional rate of
interest. It provides periodical training to new entrepreneurs in various fields.
ABN amro has regarded as the topper 2002 because of its consumer banking corporate
banking fee based banking internet and shared services business.
ICICI bank has open call center at hitec city in byderabad to provide high quality self
service and convenience to the customers with the help of ATM, phone and internet.
Corporation bank sets aside Rs. 88 crore for technology up gradation, union bank and
corporation bank market, new india product and corp e cheque. Other reforms are,
Take out financing more than two banks, joint together in long term loan finance.
Revolving credit facility bank allows the customer to draw, repay, up to a certain limit for certain
Ever greening of loan bank provides loan to repay the existing loan.
Syndicated loan single borrower get loan from group of banks.
Bridge loan short term temproray loan.
Consortium finance large crediyt facility may be arranged by a combination of several banks.
Preferred financing wealty customers obtain for the purchase of fixed assets.
Bullet payment system – single repayment of loan and interest on maturity.
Balloon payment system – repayment of small instllment value at the beginning and large
installment value on maturity.
Bank also provide venture capital factoring services, and gold deposit scheme.
INFORMATION TECHNOLOGY BASED REFORMS
AUTOMATED TELLER MACHINES(ATM)
ATNM cards are issued to current and savings bank account holders, by using the card
deposits, withdrawals can be made and balance can be known quickly at any time.
Customer can obtain information about his accounts quickly, however deposits and withdrawals
cannot be made.
NET BANKING OR INTERNET BANKING
The customer can get his bank balance or give other instructions pertaining to his account, call
for information and transfer money without visiting the bank.
Banking sectors are very transparently exhibiting their financial positions after the entry of I.T,
industry in the banking field.
In the past decade the world has witnessed an intense consolidation of the international banking
, which is often associated with the concept of globalisaition.
Indian banking sector introduces modern service by innovative product and services to its
customers . banking industry in india has to adopt strategies, which are adopted by the developed
countries in the past, present and future,. So the recent trends in banking industry in india leads
to the development of our nation.