Data Analysis In Banking Industry

Data Analysis is defined as “Procedures for analyzing data, techniques for interpreting the results of such procedures, ways of planning the gathering of data to make its analysis easier, more precise or more accurate, and all the machinery and results of (mathematical) statistics which apply to analyzing data."((John Tukey, 1961)

Data analysis is widely used in many fields but the most important ones are as follows: - data analysis is widely used in structuring the observations from various sources of data collection in survey research. Data analysis acts like a filter when it comes to collecting meaningful observations from a huge data set. It is again very helpful in breaking a complicated problem into an uncomplicated problem. Every researcher

In the medical field data analysis is done to check the significance of test drug over reference drug. One of the most important applications of data analysis is that it helps in keeping human preference away from research conclusion with the help of proper statistical treatment. Quantitative data as well as Qualitative data can be filtered using data analysis. Thus, data analysis proves to be of great importance to research and the researcher. In banking industry data analysis can be used to interpret and understand the behaviour of the data thereby making the decision making process much simpler. In education industry data analysis can again be used to see the variations in the methodologies used in different places. In the food industry data analysis can be done to forecast the future sales thus increasing the profits of the

Banking system in India has been in existence since the 1770’s. The first bank was set up in 1770 and it was named Bank of Hindustan. Later on more banks like Bank of Bombay (1840), Bank of Calcutta (1840) and Bank of Madras (1843) were established under the charter of British East India Company. These banks were later merged in 1921. A new entity known as Imperial Bank of India was thus born. The Reserve Bank of India was established on 1 April 1935 under the provisions of ‘Reserve Bank of India Act, 1934’. The RBI later acquired control of Imperial Bank of India to develop the banking facilities in the rural areas. However the Imperial Bank of India was later nationalised on 1st July 1955 and subsequently renamed State Bank of India. In 1960, when Reserve Bank of India was empowered to force compulsory merger of weak banks with the strong ones, it significantly reduced the total number of banks from 566 in 1951 to 85 in 1969.

Banking industry is the strength for the growth of any economy. The journey of Indian banking system has faced many phases of economic changes. The strong banking procedures and controls and regulations framed had no effect on India in the recent world economic crisis. The Banking industry has transformed itself from a stagnant business