23-06-2012, 01:51 PM
Comparative Analysis of SBI & HDFC Bank Regarding Personal Loan
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INTRODUCTION OF BANKING INDUSTRY
Bank
A bank is license by a government. Its primary activity is to lend money.
Many other financial activities were allowed over time. For example banks
are important players in financial markets and offer financial services such
as investment funds In some countries such as Germany, banks have
historically owned major stakes in industrial corporations while in other
countries such as the United States banks are prohibited from owning nonfinancial
companies. In Japan, banks are usually the nexus of a cross-share
holding entity known as the zaibatsu. In France, banc assurance is
prevalent, as most banks offer insurance services (and now real estate
services) to their clients.
The level of government regulation of the banking industry varies widely,
with counties such as Iceland, the United Kingdom and the United States
having relatively light regulation of the banking sector, and countries such
as China having relatively heavier regulation (including stricter regulations
regarding the level of reserves).
History
Banks have influenced economies and politics for centuries. Historically, the
primary purpose of a bank was to provide loans to trading companies.
Banks provided funds to allow businesses to purchase inventory, and
collected those funds back with interest when the goods were sold. For
centuries, the banking industry only dealt with businesses, not consumers.
Banking services have expanded to include services directed at individuals,
and risk in these much smaller transactions are pooled..
ABOUT BANKING:-
Section 5(b) of the Banking Regulation Act, 1949
defines banking as ‘the accepting, for the purpose of lending or
investment, of deposits of money from the public, repayable on demand or
otherwise, and withdrawal by cheque, draft, order or otherwise.”
Section 5© of the Banking Regulation Act, 1949 defines a banking company’ as
“any company which transacts the business of banking in India”.
HISTORY OF SBI BANK:-
The evolution of State Bank of India can be traced back to the first decade of the
19th century. It began with the establishment of the Bank of Calcutta in Calcutta,
on 2 June 1806. The bank was redesigned as the Bank of Bengal, three years
later, on 2 January 1809. It was the first ever joint-stock bank of the British India,
established under the sponsorship of the Government of Bengal. Subsequently,
the Bank of Bombay (established on 15 April 1840) and the Bank of Madras
(established on 1 July 1843) followed the Bank of Bengal.
Presidency Banks Act:-
The presidency Banks Act, which came into operation on 1 May 1876, brought the
three presidency banks under a common statute with similar restrictions on
business. The proprietary connection of the Government was, however,
terminated, though the banks continued to hold charge of the public debt offices in
the three presidency towns, and the custody of a part of the government balances.
The Act also stipulated the creation of Reserve Treasuries at Calcutta, Bombay
and Madras into which sums above the specified minimum balances promised to
the presidency banks at only their head offices were to be lodged. The
Government could lend to the presidency banks from such Reserve Treasuries but
the latter could look upon them more as a favour than as a right.
Bank.