HISTORY OF BANKING IN INDIA

history of banking in india

State Bank of India (?????? ????? ????) (SBI) is the largest state-owned banking and financial services company in India, by almost every parameter – revenues, profits, assets, market capitalization, etc.

history of banking in india – The Paradise

The Paradise Bank: The Mercantile Bank of India, 1893-1984 (Studies in Banking History)

The Mercantile Bank of India was one of a small band of British-managed banks which dominated Anglo-Eastern finance for most of the 20th century. Founded in London in 1893, the Mercantile inherited the business, branches, staff and even the distinctive cable address (Paradise, London) of its forerunner – the Chartered Mercantile Bank of India, London and China. In the early 1900s, the Mercantile Bank re-established a strong and quietly successful business in the East. After World War I, it played a prominent part in banking development in Malaya. In addition to maintaining its support for the trade of the Indian sub-continent, the bank also enjoyed success in Shanghai. Like its major rivals, the Hongkong Bank, Chartered Bank and the National Bank of India, the Mercantile Bank suffered grievously during World War II. In the post-war world it needed both to adapt to massive political change throughout the East and to diversify into new markets and new types of business. In 1959, the Mercantile became a subsidiary of the Hongkong Bank and this book explores the complex high-level negotiations in London and the East which preceded the acquisition. Although the Mercantile Bank was fully absorbed in 1984 by the Hongkong Bank (now part of the HSBC Group), its history, business and personnel remained an important thread in the traditions of the enlarged group. This history deploys the extensive archives of the Mercantile Bank, together with the memoirs of former officials and their families.

india – gujarat

Sun Temple of Modhera.

Sun Temple at Modhera is one of the few shrines that are dedicated to the Sun God. Situated on the banks of Pushpavati River in Modhera, Sun Temple is easily accessible from Ahmedabad, the largest city of Gujarat.
In 1026, the temple was built by King Bhimdev of the Solanki dynasty (believed to be the descendants of the lineage of Sun God). This ancient temple revives the reminiscences of Sun Temple at Konark in Orissa. Turning in the pages of history, one can notice the mention of Modhera in the scriptures like Skanda Purana and Brahma Purana. The surrounding area of Modhera used to be known as Dharmaranya (forest of righteousness) and the place was blessed by Lord Rama.
The brilliant architecture of the temple is one of its own class. The temple encompasses three different yet axially-aligned and integrated constituents. As per the Konark Temple, this shrine is designed in a manner, so that the first rays of the Sun cast on the image of the Lord Surya. The Temple was plundered by Mahmud Ghazni; still the architectural grandeur is not vanished. No matter what is left, yet the remnants provide a great enchantment to behold.
Erected on a high platform, the Temple appears majestic with its grand structure. However, the spires are out of the scene, but the ‘Toranas’ (Archways) that lead to the main halls overshadow the absence of spires or shikhars. The exterior walls are engraved with intricate carvings, boasting about the mastery of art in those times. Every single inch of the structure is covered with the sculptural patterns of Gods, Goddesses,
birds, beasts and flowers. Actually, the Sun Temple is divided into three parts namely Surya Kund, Sabha Mandap and Guda Mandap.

Surya Kund is a deep stepped tank in the front of the temple. The tank was named after the Lord Surya (Sun God). In the earlier times, this 100 sq meter rectangular tank was used to store pure water. The devotees used to take a halt here for ceremonial ablutions before moving towards the temple. Not less than 108 shrines mark the steps of this tank including the shrines dedicated to Lord Ganesha, Lord Shiva, Sheetala Mata and many others. In front of this tank, a huge ‘torana’ (archway) leads to the Sabha Mandap.
Sabha Mandap: literally, Sabha Mandap refers to an assembly hall where religious
gatherings and conferences are conducted. This hall is open from all the four sides and has 52 delicately carved pillars. The intricate carvings depict scenes from the Ramayana, Mahabharata (Indian Epics) and scenes from the life of Lord Krishna. In order to get into the Sanctum Sanctorum, one has to cross the passage with pillars and arches.
Guda Mandap is the sanctum sanctorum that is supported by a lotus-base plinth. Once, this hall used to house the idol of the Sun God. The designing of the hall was done in a way, so that the idol gets the first glimpse of the Sun at equinoxes. However, the idol was plundered by Mahmud Ghazni yet the walls represent the Sun God in his 12 different facets of each month. The carved walls also depict the aspects of human life like the vicious circle of birth and death. The facade of this hall was renovated in the recent years, despite the fact that the roof over the Guda Mandap had already been shattered.

Chartered Bank of India, Australia & China – Rangoon – 1942

Cnr of Phayre St & Bank St, Rangoon.
The Chartered Bank of India, Australia & China was one of the great British colonial bankers in Asia and was founded by the granting of its Royal Charter in 1853. From its head office in Bishopsgate St in London, generations of adventurous Britons sallied forth and operated throughout the furthest reaches of the Empire. The bank opened its first branches in Bombay and Calcutta in 1857. It later opened branches in Shanghai and Hong Kong and went on to play an important role in both Indian and Chinese banking during the days of the British Empire.

Recently annexed by the British, Lower Burma became part of the British Raj. The Rangoon branch was established by Alexander Watson in 1858 and thrived on the rice and teak trade.

Located at the heart of the financial district of Rangoon, the current building replaced an earlier office (1900). The architecture is an attractive mix of modern Art Deco features and some Burmese accents; in particular the almost pagoda-like tower. Confirmation of its identity can be found in the book "Realms of Silver: One hundred years of banking in the Far East" (1954) by Compton Mackenzie, a history of the the Chartered Bank of India, Australia & China. The architects were the Shanghai-based Palmer & Turner.

It sits in Phayre Street, now called Pansodan Street, which I think is one of the best-preserved colonial streetscapes in Asia.

history of banking in india

Soon after Independence in 1947, Government of India followed a policy of social control of important financial institutions. As a result of state domination, India’s financial system was characterised by barriers to entry, control over pricing of financial assets, high transaction costs and restrictions on movement of funds from one market segment to another. It was in this backdrop that wide-ranging financial sector reforms were introduced as an integral part of the economic reforms programme started in early 1990s. The present book explains and examines at length the changes which have swept India’s financial sector over the last 60 years since Independence, with focus on post-1991 period. The book is organised into 9 parts, each part containing chapters/information relevant to the theme of that part.