Introduction of Reserve Bank of India : The Reserve Bank of India (RBI) is India 's central banking institution, which controls the monetary policy of the Indian rupee. It commenced its operations on 1 April 1935 during the British Rule in accordance with the provisions of the Reserve Bank of India Act, 1934. The original share capital was divided into shares of 100 each fully paid, which were initially owned entirely by private shareholders. Following India 's independence on 15 August 1947, the RBI was nationalised on 1 January 1949. The RBI plays an important part in the Development Strategy of the Government of India.
By the end of the 19th century it had branches at Jhansi, Kanpur, Lucknow, Bareilly, Nainital, Calcutta, and Delhi. 20th century In the initial 20th century, with the start of Swadeshi movement, Allahabad Bank viewed a spurt in deposits. In 1920, P & O Banking Corporation acquired Allahabad Bank with a bid price of Rs.436 (US$6.50) per share. In 1923 the bank relocated its head office and the registered office to Calcutta for explanations of both operational convenience and business opportunities. Then in 1927 Chartered Bank of India, Australia and China (Chartered Bank) acquired P&O Bank.
A. Profile of the Company The bank, “The Kumbakonam Bank Limited” as it was then called, was incorporated as a limited company on 31st October, 1904. The first Memorandum of Association was signed by twenty devoted and prominent citizens of Kumbakonam including Sarvashri R. Santhanam Iyer, S.Krishna Iyer, V.KrishnaswamiIyengar and T.S.Raghavachariar. T.S.Raghavachariar was the First Agent of the Bank. In 1908, he was succeeded by Shri R. Santhanam Iyer who became the Secretary of the bank under the amended Articles of Association which created the office of a Secretary to be in charge of the Bank 's Management in the place of the Agent, which post he held till his death in 1926.
And Next came Bank of Hindustan and Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called them Presidency Banks. These three banks were amalgamated in 1921 and established a new bank called imperial Bank of India, which started as private shareholders banks. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. During those day’s public has lesser confidence in the banks.
The commercial banking activities began with the establishment of Bank of Hindustan in 1770, which is the first joint stock company in India. But this was liquidated in 1832. In 1806, the Bank of Bengal was established followed by the establishment of Bank of Bombay and Bank of Madras in 1840 and 1843 respectively. These three banks together known as Presidency banks and was given right to issue notes in the region. During this time, many banks emerged but failed due to speculation, mismanagement and fraudulent practices.
Morgan & Co. was forced to separate its investment banking from its commercial banking. Since, investment banking was not in a good condition due to the stock market crash of 1929 and commercial lending was considered to be more profitable, J.P. Morgan & Co. chose to operate as commercial bank. J.P. Morgan & Co. was barred from securities business for almost a year, in 1935, the heads of J.P. Morgan decided to call off its investment banking operations. So, Henry S. Morgan and Harold Stanley who were J.P. Morgan partners, founded Morgan Stanley on 16th September, 1935. By late 1990s, J.P. Morgan emerged as a large commercial and investment banking franchise having strong presence in debt and equity securities
So through these regional exchanges we can deal or transact to buy or sell securities. Such stock exchanges are helps in each regions to invest in stock market for investors. Bombay Stock Exchange (BSE) BSE is one of the oldest and recognized stock market in India and also located in Asia. In olden days it was calling as “The Native Share & Stock Brokers Association”. It was established in the year of 1875 and it was the first and foremost stock exchange in India and it was recognized by the government of India.
According to Muhamad Muda (1996), the history of Malaysian banking development dates back to more than 130 years ago when the first commercial bank which is the Chartered Mercantile Bank of India, London and China was established in 1859. In July 1913, Kwong Yik (Selangor) Banking Corporation was the first domestic bank in Malaysia. Commercial Bank, finance companies and merchant banks is the early financial structure of Malaysia. On 24 January 1959, the Central Bank which is Bank Negara Malaysia was established under the Central Bank of Malaya Ordinance, 1958 and Bank Negara
As distant as external banks are distressed they are probable to prosper in the Indian Investment Industry Indusland Bank was the early confidential bank to be set up in India. In the Indian Investment Industry a little of the Confidential Sector Banks working are IDBI Bank, ING Vyasa Bank, SBI Business and Global Bank Ltd, Dhanalakshmi Bank Ltd,Karur Vysya Bank 1.4 NATIONALISATION OF BANKS IN INDIA The nationalization of banks in India seized locale in 1969 by Mrs. Indira Gandhi the next prime minister. It nationalized 14 banks then. These banks were generally owned by businessmen and even grasped by them. 1.
2.2.1 BACKGROUND OF THE COMPANY State Bank of Mysore was founded by the great engineer- statesman Sir M vishvesvaraya in 2nd October 1913 and it was further established as Bank of Mysore ltd in 19 may. Under the encouragement of Maharaja krishnaraja wadiyar 4th of Mysore. In 1953 Reserve Bank of India became the agent of State Bank of Mysore to take the responsibility of treasury operations and government business. Under the State bank of India an act 1959 State Bank of Mysore became a subsidiary of State Bank of India. At present State Bank of India hold’s 90% of shares with the paid up capital of 48.01crore.