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& Institutional Clients

Banking System in India
A practitioner’s view
Hannes Weibel
Global Head Swiss Corporate Clients Desk

August, 2012

Foreign Trade

Table of contents
Section 1
Section 2
Section 3

Indian Banking System
Doing business in India
Swiss Desk Team Setup in Asia Pacific



Section 1

Indian Banking System

Structure of Indian Banking Industry (1)
(APEX Bank)







operative Banks

Public Sector

Private Sector

Foreign Banks

Regional Rural

Urban Co-

Banks (26)

Banks (21)


Banks (82)

Operative (1’674)

SBI and Associate
Banks (6)
Other Nationalized
Banks (19)

Old (14)

State Cooperative

New (7)

Other Public Sector
Bank (1)
Data is complied from the booklets “IBA-Performance Highlights of Public Sector, private Sector and Foreign Banks in India”


Reserve Bank of India
The Reserve Bank of India is the central bank of the country Established in 1935, RBI’s role is four-fold:
• Regulate and supervise the Indian financial system
• Formulate, implement and monitor the monetary policy of the country • Manage the country’s foreign exchange reserves and prescribe exchange control norms to facilitate external trade and payments and

• Act as banker to the central and state governments

The banking industry in India is highly regulated


Major Players in the Indian Banking Industry
• Public Sector Banks (SBI and associates +
Nationalized banks) control more than 75%
of the total deposits businesses in India
whereas Private Sector Banks around 1718%.
• India has a robust credit market with a wide
range of financial institutions. Indian
commercial banks have outstanding
advances of approx. INR 40 trillion and
deposits of more than INR 54 trillion.

Deposits in 2010


Public Sector

Private Sector Banks

Foreign Banks in india

Type of commercial Banks Major Shareholders

Major Players

Public Sector Banks

Government of India...

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