01-12-2012, 12:24 PM
Bank of India
Bank of India.docx (Size: 46.03 KB / Downloads: 49)
BANKING HISTORY
It may be said that banking in its most simple form is as old as authentic history. As early as 2000 B.C. Babylonians had developed a system of banks. In ancient Greece and Rome the practice of granting credits was widely prevalent. Traces of credit by compensation and by transfer order are found in Assyria, Phoenicia and Egypt before the system attained the full development in Greece and Rome. The books of the old Sanskrit laws giver, Manu, are full of regulation governing credit. He speaks of judicial proceeding in which credit instrument were called for interest on loans to banker, usurer and even of the renewal of commercial papers. In Rome, the bankers were called Argentarii, Mensaril or Callybistoe. The banks were called Tabornoe Argentarii. Some of the banks carried business on their own account and others were appointedby the governments to receive the taxes. They used to transact theirbusiness on similar lines as those of modern banks. People used to settletheir accounts with their creditors by giving a cheque or draft on thebank. If the creditors had also an account at the same bank the accountwas settled by an order to make the transfer of such money from onename to another. To pay money by a draft was known as Prescribere andRescribere and the draft was known as Attributio. These bankers alsoreceived deposits and lent money. Loan banks were also common inRome. From the loan banks the poor citizens received loans withoutpaying interest. They lent money for a period of three to four years on the security of land.Although during the early periods, private individual did bankingbusiness, many countries established public banks either for the purposeof facilitating commerce or to serve the government.
DEVELOPMENT OF BANKING IN INDIA
Financial system of any country consists of specialized and non-specialized financial institutions, of organized and unorganized financial markets, of financial instruments and services that facilitate transfer of funds. The word “system” in the financial system implies a set of complexand closely connected and interlinked institutions, agents, practices, markets, transactions, claims and liabilities in the economy.Banking in India has its origin as early as the Vedic period. It isbelieved that the transition from money lending to banking must haveoccurred even before Manu, the great Hindu jurist, who has devoted asection of his work to deposits and advances and laid down rules relatingto rates of interest. During the Mogul period, theindigenous bankersplayed a pivotal role in lending money and financing foreign trade andcommerce. During the days of East India Company, it was the turn of theagency houses of carry on the banking business.The “General Bank of India” was the first Joint Stock bankto beestablished in the year 1786. The others, which followed, were the “Bankof Hindustan” and the “Bengal Bank”. The Bank of Hindustan is reportedto have continued till 1906 while the other two failed in the meantime. Inthe first half of the 19thcentury the East India Company established threebanks; “Bank of Bengal” in 1809, the “Bank of Bombay” in 1840 and the “Bank of Madras” in 1843. These three banks are also known as “Presidency Banks”.
COMPANY PROFILE
Bank of India is a state-owned commercial bank with headquarters in Mumbai. The Bank provides a wide range of banking products and financial services to corporate and retail customers. The bank provides specialized services for businesses (dealing in foreign exchange), NRIs, merchant banking, etc. They also have specialized branches that deal in asset recovery, hi-tech agricultural finance, lease finance and treasury, and small scale industries. The Bank offers products such as mutual funds, venture capital, depository services, bullion trading and credit cards. The Bank operates in three business segments, namely Treasury Operations, Wholesale Banking Operations and Retail Banking Operations. Treasury Operations includes the entire investment portfolio, which include dealing in government and other securities, money market operations and foreign exchange (Forex) operations. Wholesale Banking includes all advances, which are not included under Retail Banking. Retail Banking includes exposures which fulfill two criteria, the maximum aggregate exposure up to rupees five crore and the total annual turnover is less than rupees 50 crore.
DEPOSITS:
Public for the purpose of lending. In fact, depositors are the major stakeholder’s of the Banking System. The depositors and their interests form the key area of the regulatory framework for banking in India and this has been enshrined in the Banking Regulation Act, 1949. The Reserve Bank of India is empowered to issue.
Directives/advices on Interest Rates. Banks are now free to formulate deposit products within the broad guidelines issued by RBI.This policy document on deposits outlines the guiding principles in respect of formulation of various deposit products offered by the Bank and the terms and conditions governing the conduct of the Account. The document recognizes the rights of depositors and aims at dissemination of information with regard to various aspects of acceptance of deposits from the members of the public, conduct and operations of various deposit accounts, method of disposal of deposits of deceased depositors, etc., for the benefit of customers. It is expected that this document will impart greater transparency in dealing with the individual customers and create awareness of their rights. The ultimate objective is that the customers will get services they are rightfully entitled to receive without demand. While adopting this policy, the bank reiterates its commitment to individual customers outlined in the Bankers’ Fair Practice Code of Indian Banks’ Association.