(Wirnkar & Tanko, 2008). Barr et al. (2002) states that “CAMEL rating has become a concise and critical tool for examiners and regulators”. This rating ensures a bank’s healthy conditions by reviewing different aspects of a bank based on variety of information sources such as financial statement, funding sources, macroeconomic data, budget and cash
These fourteen banks, back then, contained a whooping eighty five per cent of the total bank deposits in our country. 1980, was witness to yet another round of nationalization and six more commercial banks came under the government control. With this huge leap, an enormous ninety one per cent of the banking sector came under direct control of the Indian Government. With this, the number of nationalized banks in India rose to twenty. Sometime later, in the year 1993, the government took yet another stride towards economic prosperity and made a turn towards merger of banks.
Therefore, commercial banks, which are the main component of the banking system, have to be efficient otherwise they will create unbalanced mind and millstone in the process of development in any economy. In order to maintain the market share so as to survive and remain competitive, the technological advancements and globalization have given the pressure on the part of the banks. Competition from foreign banks as well from domestic banks themselves creates the greater pressure. Malaysia commercial banks also no exemption since banks are exposed to severe competition both locally and globally. Therefore, commercial banks not only need to be profitable, but also efficient.
Commercial Banking The World of banking is changing rapidly and the days of high street branch and local branch manager are passing. Telephone banking, PC access to accounts and other banking services are playing vital role in this contemporary world. The fact that banking figures are important and they are readily available in a large number of countries has not meant that banking conditions as between different countries could be readily compared. In each country, those figures which are available represent samples covering predominantly the larger banks in the larger cities. And here we talk about the Commercial banks which have a greater capacity for varying the aggregate volume of credit than other financial intermediaries.
They evaluated the bank performance by checking the impact of macro variables on it by collecting data of 15 commercial banks. They took a period of 5 years from 2005 to 2009 for analysis. Data was collected from state bank of Pakistan. Data of gdp and inflation was collected from World Bank. Simple regression and OLS method was used for the analysis.
Askari Bank, Habib Metropolitan Bank, MCB, Standard Chartered Bank, Bank AlFalah, UBL, Bank AlHabib Limited, NBP, HBL, Citi Bank, Allied Bank Limited.etc. are some of the examples of Commercial Banks. Savings and Loan Associations and Mutual Savings Banks: These institutions get funds through savings deposits which are called shares and fixed and current account deposits. The best example of this Institution is National Savings Bank of Pakistan. Credit Unions: These institutions are less in numbers which are cooperative lending institutions which are organized around a particular group that is union members, employees of a particular firm.etc.
Equally important, there is no industry to replace them as the key performer in creating our economies multiplier effect. Moreover, I would frame them as an industry that measures their success by ROA and ROE, metrics that is influenced by their ability to buy deposits and sell loans. I could give full SWOT analysis of the banking industry; however I would run out of room. Banks utmost strength is that bank lending has been a significant driver of GDP growth and employment. They are a conduit for social and economic policy.
3. METHODOLOGY USED IN THIS STUDY The study is actually a descriptive case pattern of study. The facts and findings related to the HR issues and challenges related to the Indian banking sector have been studied analysed and data collected from some of the banks in and around satna related to the same. To say mostly it have been formulated based on account of the secondary/published data in various RBI websites ,official bank sites ,magazines ,journals, white papers & books. The primary data and information related to the same been collected by means of questionnaire and face to face interviews with various executives and employees of some private and public sector banks .The questionnaire developed by means of brain storming in a group of ten faculty members and few very good management students.
Sustainable development has also become very familiar among the banks concerns (Jeucken, 2001). Many banks will commit themselves to reduce energy consumption by favouring the use of recycling papers, energy saving bulbs and renewable energy. These are examples how banks show concerns about the environment. As per Giddings et al (2002), race and sex representation with regards to air travelling policies for active employees within the institution are not seen as extraordinary anymore. Furthermore, on 29 December 2003, Kofi Annan (the former UN General) stated that most people around the world are not exposed enough to financial services be it savings, insurance or credit and the real challenge here is how to make them participate in this sector.
2.4 MAJOR DIFFERENCES BETWEEN SCHEDULED COMMERCIAL BANK AND CO-OPERATIVE: Both commercial and cooperative banks in India are scheduled banks and perform similar functions such as deposit banking and advances. However they have certain differences in their structure and supervision. - Commercial banks are owned by share-holders and cooperative banks by members of cooperative societies. - Both are controlled by Banking Regulation Act 1949. However co-operative banks are likewise secured under the Co-operative Act, 1912 and Banking Laws Act, 1965.