 |
Merger of ING Vysya with Kotak Mahindra Bank
Indian Banking Industry
Since ancient times, an indigenous banking industry had prevailed in India with some communities being traditionally involved. These communities mostly ran huge businesses apart from the banking business. In fact, the banking business was relatively smaller than their other businesses. They mainly dealt in money lending, did not accept deposits from customers, and discouraged savings. They used their personal wealth and that of their ancestors and income from other businesses for lending purposes. They lent money for personal as well as business purposes and were infamous for the high rates of interest they charged and their unethical banking practices’. |
|
The western type of banks came into the picture in the late 18th century in India when Bank of Hindustan was established in 1770 in Calcutta (now Kolkata) in Western India. Later, General Bank of India was established in 1786 in Calcutta. Calcutta became the center of banking activities mainly due to the trading activities of British Empire. In the 19th century, the major development in the Indian banking industry was the establishment of three presidency banks by the British East India Company. However, in 1921, these three presidency banks were amalgamated to create the Imperial Bank of India.......
