UNIVERSITY OF MUMBAI

PROJECT REPORT ON ROLE OF BANKS IN INDIAN FINANCIAL SYSTEM WITH REFERENCE TO STATE BANK OF INDIA

T.Y.B.B&I (SEMESTER V) ACADEMIC YEAR: 2011 2012

SUBMITTED BY PERINBARAJ GANAGARAJ ROLL NO 25034

PROJECT GUIDE PROF. RAVI SINGH

S.I.W.S N.R SWAMY COLLEGE OF COMMERCE & ECONOMICS SMT. THIRUMALAI COLLEGE OF SCIENCE 337, SEWREE WADALA ESTATE, WADALA, MUMBAI 400 031.

PROJECT REPORT ON ROLE OF BANKS IN INDIAN FINANCIAL SYSTEM WITH REFERENCE TO STATE BANK OF INDIA

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF DEGREE OF B.COM BANKING & INSURANCE By PERINBARAJ GANAGARAJ ROLL NO 25034 T.Y.BBI (SEMESTER V)

S.I.W.S N.R SWAMY COLLEGE OF COMMERCE & ECONOMICS SMT. THIRUMALAI COLLEGE OF SCIENCE 337, SEWREE WADALA ESTATE, WADALA, MUMBAI 400 031.

S.I.W.S N.R SWAMY COLLEGE OF COMMERCE & ECONOMICS SMT. THIRUMALAI COLLEGE OF SCIENCE 337, SEWREE WADALA ESTATE, WADALA, MUMBAI 400 031. CERTIFICATE

NAAC ACCREDITED B++

This is to certify that, Mr./Miss__________________________________ Of T.Y.B.B.I Semester V (2011-12) has successfully completed project on__________________________________________ ___________________________________________________________ Under the guidance of _________________________________________

_______________________ (Signature of Project Guide)

___________________________ (Signature of Principal)

_______________________ (Signature of Coordinator)

___________________________ (Signature of External Examiner)

DECLARATION
I Mr./Miss _________________________________________ the student of S.I.W.S N.R Swamy College of Commerce & Economics, studying in T.Y. B.Com Banking & Insurance ( Semester V), hereby declare that I have completed the project report on ROLE OF BANKS IN INDIAN FINANCIAL SYSTEM WITH REFERENCE TO INDIAN BANK in the academic year 2011 2012. The information submitted is genuine and practical to the best of my knowledge.

Date: ________________ PERINBARAJ Place: Mumbai

__________________

(Roll No-25034)

EXECUTIVE SUMMARY
Although banking is an old activity and has roots on Economics, Finance and Commerce, the concept of Information Technology is of recent origin. To many people information technology means the use of computers and related hardware to streamline and automate banking operations. This book attempts to identify banking technology and offer a much more realistic and operationally sufficient perspective on banking technology. Universally conducting efficient banking operations and associated business involves managing; The information and communication technology that drives banks core business. Customer relationships. Risk associated with conducting business with customers and orher banks and financial institutions. Successful banks all over the world have invested considerably in information and communication technologies, which in turn would increase banks profits considerably on one hand and improve the level of their customers in doing business with them on the other hand. Further such banks are very sensitive to the risks they face in dealing with money in the form of credit risk or market risk or operational risk. Banks continuously embrace, with great favor the latest development in information and communication technologies and customer relationship management in order to service better and reap more profits. If banks employ cutting-edge technologies to service their customers efficiently, regulatory requirements.

ACKNOWLEDMENT
A project is the fruit of experiment and experience and it goes a long way to modeling a person and gaining a new insight in that field of research. In this rewarding experience, one recognizes the help and support rendered by kind heart behind its success. I would take this opportunity to thank all my teachers, especially Prof. Veena Prasad, the co-ordinator of B.Com (Banking & Insurance). I would like to thank Prof.Ravi singh my project guide, who sincerely guided and supported me in doing the project. I would also like to thank the Managers of Canara Bank, who has given me the relevant information on the topic. I would also like to show my gratitude towards my family, friends and all others who have helped and supported me in doing the project.

Date: Place:

Perinbaraj Ganagaraj Roll no: 25034

OBJECTIVES OF THE STUDY

The objectives of the Study are as follows: To assess the Role of Information Technology in the Public Sector Banks, Private Sector Banks and Foreign Banks. To Assess the Perception of the Bank Employees towards the Implementation of Information Technology in the Banks. To Assess the Perception and Satisfaction of the Customers with the banks.

INDEX
Chapter No. 1 1.1 1.2 1.3 1.4 Topic Introduction to Financial System Financial Markets Financial Intermediation Financial Instruments Page No

1-8

2.1

History of Banking Financial System a) Post Independence b) Traditional Banking

9-13

3.1

Types of Banking in Financial System a) Modern Banking b) Public Sector Bank c) Private Sector Bank d) co-operative Bank

14-18

4.1

Role of Banks in Financial System a) Modern b) Future

19-22

5.1

Role of Commercial Bank in the Economic Development of a Country

23-38

6.1

Development Banks in India a) Function of Development bank in India b) Formation of Development in India

39-42

7.1

Services fee Based and Fund Based

43-45

8.1

Case Study of SBI

46-49

9.1

Literature Review

50-53

10

10.1

Conclusion

54-55

11

11.1

Biblography

56