Waves of Banking Industry in India

 Waves of Banking Industry in India

Bank Definitions

        The bank accept money from people in the form of deposits which are repayable on demand or repay after maturity period of deposit and the deposited money can lend to people. A bank provides easy payments and withdrawal facility to it's customers in the form of cheques and draft. Other definition is "A bank accepting deposits from people for the purpose lending money to people"

The Beginning of Banking History

     
      The English trader came to India in 17th century. English trader was trying to expand their business in India. English traders need unlimited liability for their commercial purpose. Therfore, the English Agency house began banking business in Calcutte and Bombay.The English agency house, that began serve as bankers to the East India Company had no capital of their own and depended on deposits for their funds. They financed movements of crops, issued paper money and established joint stock bank. The bank was Hindusthan Bank  , establisted by one of the agency house in Calcutte in1770. Banking originated in India in last decades of 18th century. It was classified into four part as below    

Early Historical         Pre-Independence      Post-Independence        Post-Independence
& Formative era       era  1906- 1946            Regulate era                 Deregulated era
 1786 - 1935                                                     1947 - 1993                   1993 - till now    


1) Early Historical and Formative era: 1786 - 1935

         Banking in India started in last decades of  18th century. The General Bank of India started in 1786, and Bank of Hindustan both of which are now defunct. The Bank of Calcutta established on 2nd June 1806 and which almost immediately became Bank of Bengal, Bank of Bombay was started on 15th April 1840 and Bank of Madras established on 1st July 1843. All three were called Presidency Banks. For many years the Presidency Banks acted as quasi-central banks. They were established by British East Indian Company. Foreign banks came to India in 1860s. 


           The Comptoire d'Escompte de Paris came to India. HSBC established in Bengal in 1869. Calcutta was most active trading part in India. Indian merchants started Union Bank in Calcutta on 1839  but it collapsed in 1848 because of the economic crisis of 1848-49. The Allahabad Bank established by Indians in 1865 and  still functioning. It's the oldest joint stock in India.

         The Swadeshi movement inspired local businessmen and political figures to found bank of and for the Indian community. A number of banks established then have survived to the present such as

Bank year of starting

Bank of Bengal                                     1809 
Bank Of Calcutta                                  1840
 Bank of Madras                                    1843
Allahabad Bank                                     1865 
 Panjab National Bank                            1894
 Canara Bank                                         1906
 Indian Bank                                           1907
Bank of Baroda                                      1908
Central Bankk of India                           1911
Bank of Mysure                                     1913
Union Bank of India                               1922