Banks in India and Profiles- Square Capital

Banks and Financial Institutions in India

Square capital deals with different banks to priovide easy loans hasslefree. Loans are the first step, going for any perticular investment. We at Square Capital take this process on our hand, so that you sit comfortably and responsibility is ours to get a loan for you at lower interest rates in minimum time. Be it home loan, personal loan , loan against property or business loan we offer loan from different banks in an efficient way. We provide profiles of wide range of banks, their comprehensive information and you can choose any one of them which suits you.

Select from a wide range of Banks:-

Private Banks

Nationalized Banks

Foreign Banks


Banking in India

The name of banks originated in India in late 18th century. Among the primary banks were the Bank of Hindustan, which was set up in 1770 and liquidated in 1829-32; and the General Bank of India, set up in 1786 yet fizzled in 1791.

The largest bank, and the most seasoned still in presence, is the State Bank of India (S.B.I). It began as the Bank of Calcutta in June 1806. In 1809, it was renamed as the Bank of Bengal. This was one of the three banks financed by an administration government, the other two were the Bank of Bombay and the Bank of Madras. The three banks were converged in 1921 to frame the Imperial Bank of India, which upon India's autonomy, turned into the State Bank of India in 1955. For a long time the administration banks had gone about as semi national banks, as did their successors, until the Reserve Bank of India was built up in 1935, under the Reserve Bank of India Act, 1934.

In 1960, the State Banks of India was given control of eight state-related banks under the State Bank of India (Subsidiary Banks) Act, 1959. These are presently called its partner banks. In 1969 the Indian government nationalized 14 noteworthy private banks. In 1980, 6 more private banks were nationalized. These nationalized banks are the greater part of loan specialists in the Indian economy. They command the managing an account area in light of their vast size and boundless systems.

Banks Categories:

The Indian Banking system is comprehensively characterized into scheduled banks and non-scheduled banks. The scheduled banks are those included under the second Schedule of the Reserve Bank of India Act, 1934. These banks are further characterized into: nationalized banks; State Bank of India and its subdivisions; Regional Rural Banks (RRBs); foreign banks; and other Indian private banks. The term commercial banks alludes to both scheduled and non-scheduled managed under the Banking Regulation Act, 1949.

Generally on a broader aspect banking system in India is limited more prior to urban areas only and rural areas still lacks the advanced banking benefits which urban areas are used to. Government has taken initiatives to extend this banking network to the reach of rural areas too, but it still remains a challenge.

Banking nationalization Era

Banking in India in pre and post nationalization era serves different aspects:

Banking in Pre-nationalization Era (1951-68)

Highlights of baking in Pre-nationalization period are summed below:

1. Industry share Increase and trade decline:

The share of business in scheduled industrial banks’ credit rose quickly over the period. From thirty four per cent in 1951 it raised to fifty one per cent in 1961 and to sixty seven percent in 1968, thereby doubling itself during a span of seventeen years. There was a corresponding decline within the share of trade from thirty six per cent to nineteen per cent which of the miscellaneous class from twenty eight per cent to eleven per cent. Among the commercial sector, the majority (about eighty per cent) of bank credit visited the company sector and solely a very small fraction to the small-scale business. Of the progressive bank credit to the commercial sector, the most beneficiaries were newer industries like engineering, iron and steel, and chemicals. 

2. Bank Credit Heavy concentration

Another feature of the pattern of bank advances to business is its extremely skew distribution in favor of a large number of borrowers. in step with one source, the scale distribution of borrowable accounts of business banks’ (in mid-sixties) showed that seventieth of total industrial advances visited just one of the whole range of borrowable accounts, every with credit outstanding of over Rs. 5 lakhs, whereas twelve-tone music of the accounts with outstanding of under Rs. 10,000 per head received barely four of the whole.

Nationalization in 1960s

Despite the provisions, management and laws of the bank of India, banks in India except the banking concern of India (SBI), stay in hand and operated by personal persons. By the Sixties, the Indian banking system had become a very important tool to facilitate the event of the Indian economy. At an equivalent time, it had emerged as an outsized leader, and a discussion had ensued regarding the nationalization of the banking system. Indira Gandhi, visionary and Prime Minister of India, expressed the intention of the government within the annual conference of the All India Congress Meeting during a paper entitled "Stray thoughts on Bank Nationalization." The meeting received the paper with enthusiasm.

The Government of India issued a law ('Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969') and nationalized the 14 major commercial banks with impact from the midnight of 19 July 1969. These banks contained 85 percent of bank stores in the country. Jayaprakash Narayan, a national pioneer of India, depicted the progression as a "masterstroke of political adroitness." Within two weeks of the issue of this law, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it got the presidential endorsement on 9 August 1969.

Liberalization in 1990s

In the mid-1990s, government left on a strategy of liberalization, giving authority to a few private banks. These came to be known as New Generation techno. savvy banks, and included Global Trust Bank (the first of such new era banks to be set up), which later amalgamated with Oriental Bank of Commerce, UTI Bank (subsequent to renamed Axis Bank), ICICI Bank and HDFC Bank. This move, alongside the quick development in the economy of India, rejuvenated the money division process or banking process in India, which has seen fast development with solid commitment from all the three areas of banks, to be specific, government banks, private banks and foreign banks.

The new step in the banking system was seen with proposed unwinding of standards for remote direct speculation. Every single remote investment in banks might be given voting rights that could surpass the present top of 10% at present. It has run up to 74% with a few confinements. The new arrangement shook the Banking division in India totally. Brokers, till this time, were utilized to the 4–6–4 strategy (get at 4%; loan at 6%; go home at 4) of working. The new wave introduced a present day standpoint and well informed strategies for working for new age banks.

Current Era:

With the liberalization of banks policies were continuously redefined to a new level to enhance the money flow in a more secure process, for the benefit of people and nation. Banks are becoming the main source of investment this time. Employment generated and more and more banks developed. The process got a great hike with the opening of private banks. These private banks enhance the working and operation of banks to an all new lwvwl where new technology are used or to a more prior banks become tech savvy.

Currently banks are divided in to these major categories:

  • Nationalised Banks

  • Private Sector Banks

  • Foreign Banks

  • Regional Rural Banks.

Products offered by banks:

CASA: CASA ratio defines the ratio of current and savings account. Its the ratio of deposits in current account to that of saving account. Generally banks doesnot give any interest on current banks savings. On the other hand interest given for saving account deposits is also low 3-4%. So this CASA ratio defines the profitability of banks. If CASA ratio is high it indicates banks are getting assets at a relative lower cost.

Trade Finance: Banks facilitate transactions of trading whether domestic or International by providing following services:

  • Letter of credit: It is a guarantee given by a financial organization in the interest of the Buyer/Importer to the Seller/Exporter, that, if the Seller shows all the relative documents which prooves that transaction is facilitated through a perticular bank then bank will make the payment to seller. 

  • Bank Guarantee: It is an endeavor assured by a Bank for the Applicant and for the Beneficiary. While, the Bank has concurred and embraces that, if the Applicant neglected to satisfy his commitments either Financial or Performance according to the Agreement made between the Applicant and the Beneficiary, then the Guarantor Bank in the interest of the Applicant will make payment upon receipt of demand.

Loan Services offered by banks:

Banks offer loan services to the individual to facilitate his/her activities smoothly. Finance become the first step in any big undertaking. Whether it’s buying a home, buying a property, finance to run a business or any other reason people want money. In order to make process smooth and secure, banks provide finance to the people with a particular interest rate. Based on your CIBIL score, it depends how much is ones loan eligibility. Square Capital provides loans across different banks:

Square Capital provides 4 types of loans:

Home Loan: Home Loans are End-Use monitored loans for the purpose of anyone wanting to buy his Dream Residential Property. Home Loans are secured loans in nature and the underlying property becomes the collateral for the loan. 

Business Loan: Business Loans are typically of both Secured & Un-Secured, taken for meeting the Capital or Working capital requirements of SMEs. 

Loan against Property: One can leverage his Property to avail a loan against it's value and use the same for any Business Development or Personal Needs. This again is a Secured loan with the underlying property being the collateral for the said loan.

Personal Loan: Personal Loans are unsecured loans, aka no security/collateral needed to avail the same. Personal loans can be availed to meet any of the personal or business needs of an individual or an entity.