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| Finance, Banking and Inflation A strong and vibrant financial and banking sector supports the rapidly expanding Indian economy. Its inherent strengths include an extensive commercial banking system, an independent regulatory authority and active stock market. Established term lending institutions, development banks, investment funds, equipment leasing companies, venture capital funds etc., add to the strength of this sector. The banking system (over 70,000 branches in the country) has an extensive coverage with commercial banks (public sector, private sector and foreign), regional rural banks, co-operative banks present all over India. |
| Major Finance indicators, March, 2000 Source: Ministry of Finance, India |
| Banking Indicators Credit off-take increase % Total bank credit (Rs. cr.) Deposits growth/ increase % Total Deposits (Rs. cr.) Total investments increase % Total investments (Rs. cr.) |
| 1999-00 17.7% 434,182 13.5% 810,065 21.3% 62,101 |
| 1998-99 13.8% 368,889 19.3% 713,714 16.4% 51,196 |
| Historical Banking Statistics Source: Economic Survey of India |
| Bank Statistics (INDIA) Number of banks Number of bank branches Population per branch Deposits (Rs.billion) Per capita deposits (Rs.) Deposits as % of GDP Credit/Deposit Ratio (%) Cash/Deposit Ratio (%) |
| 1969 89 8262 62697 46 90 13 78 8 |
| 1995 282 62264 14000 3758 4148 41 59 4 |
| Copyright � 2003, Parsi Community of United States All Rights Reserved.� |
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| The Ministry of Finance, responsible for the administration of finances of the Government, handles all economic and financial matters of the country. The Reserve Bank of India ('RBI') - India's central banking institution supervises all banking operations in the country. Among the public sector banks, the State Bank of India is the largest. Indian Banks Abroad 101 branches of 9 Indian commercial banks were operating in foreign countries, as on March 31, 1994. These branches are spread over a number of countries and located in major centers like London, New York, Paris, Tokyo, Singapore and Bahrain. These branches specialize in various areas of international trade including financing of foreign trade. Financial Institutions Industrial development in India has been financed by an integrated network of financial institutions. These institutions cater to the long and medium term financing needs of industrial projects by way of project loans, underwriting and direct subscription to shares and bonds, deferred payments guarantees, leasing venture capital, bill discounting and a variety of other financial products. The institutional framework for providing finance comprises 12 institutions at the national level and 46 at the State level. The financial institutions constitute the major sources of rupee and forex funds, as well as the non-fund based facilities such as guarantees and underwriting for medium and large sized projects. They offer additional services such as foreign exchange risk management and investment banking services to cater to all the financing needs of a customer. Currently, they can syndicate forex loans for domestic companies only. |
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