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India

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Banking landscape

India is the world's most populous democratic country and a rapidly expanding economy, although it also suffers from widespread poverty and poor infrastructure. The population remains around 70% rural, although urbanization is progressing rapidly.

Banks in India are classified by the Reserve Bank of India (RBI) as either Commercial Banks or Co-operative Banks. Commercial Banks are further classified into public sector banks, private banks, foreign banks and regional rural banks. Among commercial banks, public sector banks account for around three-quarters of all loans and deposits.

The State Bank of India is the largest of the public-sector banks, and by far the largest and most important bank in the country overall. Data from the RBI shows that the State Bank of India controls around 22% of deposits, and the same proportion of lending, making it around three times larger than its closest competitors. Foreign banks and regional rural banks have a 4.5% and 2.9% share respectively.

ICICI Bank is the second largest bank in India by assets, and the largest of the private sector banks. The next largest banks by market share are Punjab National Bank, Bank of Baroda, Canara Bank and Bank of India, each of which account for around 5% of the lending market, and each of which is state owned.

The penetration of banking services is low, with 57% of the population having access to a bank savings account, and only 13% having access to a current (checking) account, according to D&B. However investment in mobile banking, SMS banking and online banking has been a strong trend in recent years, and is helping to extend access to financial services among the rural poor.

Bank regulation

The RBI is India's central bank, and is responsible for bank regulation as well as control of monetary policy. Though it was originally privately owned, the RBI was nationalised in 1949, two years after Inidan independence, and remains wholly-owned by the state.

From the 1960s onwards, the government directly owned and controlled the vast majority of the banking sector. This remained the case until the early 1990s, when the policy changed towards one of liberalization, and the state began to license the first private banks. This wave of deregulation, together with India's rapid economic development, has transformed the banking sector in the last two decades, increasing the level of growth and competition.

Despite the liberalisation, there remain restrictions on foreign ownership of India's private sector banks. Currently, foreign ownership not exceed 74% of a bank's capital, and individual foreign investors' holdings are capped at 10%. Foreign banks operating in the country must be run as a branch of their foreign headquarters rather than as a wholly-owned Indian subsidiary, although there are reports that the RBI is considering changes in this area.

Indian banks are reliant on deposits rather than wholesale markets for their funding to a great extent, which has protected them during the years of the global financial crisis. However, the Economist magazine has recently raised concerns that Indian banks have a bigger bad-debt problem than their official figures suggest, raising the prospect of financial instability in the near future, particularly among the smaller state banks. 

Sustainability and reform initiatives

Sustainability initiatives are not advanced within the Indian banking sector. A 2011 journal article observed that of the five largest Indian banks, note had publicly reported on their sustainability performance.

In a circular in December 2007, the RBI asked all commercial banks to integrate aspects of CSR into their operations. However so far, no mandatory guidelines have been put in place.

In June 2013 IDFC Ltd became the first Indian financial organisation to sign up to the Equator Principles. IDFC is also India's only signatory to the Principles for Responsible Investment. Yes Bank is the only banking-sector signatory to the Global Compact, although there are five other Global Compact signatories in the wider financial services sector.

Co-operative banks have a significant role in the Indian market, both in urban and rural banking, and their history in India dates back to the end of the 19th century. Co-operatives represent around 30% of Indian banks by number, although they are typically small in size, and account for only 3% of market share (D&B).

India

Population: 1,241 million

GDP: 1.84 trillion USD (2011)

Axis Bank
Axis Bank is the third largest private sector bank in India. Axis Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporates,…
Bank of India
Bank of India (BoI) is an Indian state-owned commercial bank with headquarters in Mumbai, Maharashtra, India. It was founded on 7th September, 1906 by a group of eminent…
Exim Bank of India
Export-Import Bank of India operates as an export finance institution in India. The company was founded in 1982 and is headquartered in Mumbai, India.  Exim bank…
HDFC Bank
The Housing Development Finance Corporation Limited is a major Indian financial player in India. It was incorporated in August 1994, after the Reserve Bank of India allowed…
ICICI Bank
ICICI Bank is India's largest private sector bank. ICICI Bank is active in personal and corporate banking, investment banking, life and non-life insurance, venture capital…
IDFC
Infrastructure Development Finance Company Limited (IDFC) is an Indian financial services company specialising in infrastructure finance, but also involved asset management,…
Industrial Development Bank of India (IDBI)
IDBI Bank is today one of India's largest commercial Banks. For over 40 years, IDBI Bank has essayed a key nation-building role, first as the apex Development Financial Institution…
Life Insurance Corporation of India
Life Insurance Corporation is the largest life insurance company in India. It was founded in 1956 and is fully owned by the government. It provides individual life insurance,…
Power Finance Corporation (PFC)
Power Finance Corporation Ltd. is an Indian financial institution. Established in 1986, it is the financial back bone of Indian Power Sector.  
State Bank of India
State Bank of India (SBI) is the largest bank of India. The bank was founded in 1806 as the Bank of Calcutta, making it the oldest commercial bank in the Indian Subcontinent.…

India

Population: 1,241 million

GDP: 1.84 trillion USD (2011)

Dodgy Deals located in India
Sasan ultra mega coal power project (UMPP)
India
co financed by Andhra Bank, Axis Bank, Bank of Baroda, Corporation Bank, India Infrastructure Finance Company, Industrial Development Bank of India (IDBI), Life Insurance Corporation of India, Power Finance Corporation, Punjab National Bank, Rural Electrification Corporation, State Bank of India, Union Bank of India, United Bank
The Sasan project, also known as the Sasan Ultra Mega Power Project (UMPP), is a 3,960 megawatt (6x660 megawatt) coal-fired project, located in Sasan, Madhya Pradesh in India.…
Bauxite mine Niyamgiri Hills
India
co financed by Canara Bank, Export Import Bank of India, ICICI Bank, Union Bank of India
On October 5th, 2004 an official agreement was signed between the Orissa Mining Corporation (OMC) and Sterlite Industries, a subsidiary of Vedanta Resources plc, for the…
Tata Mundra Ultra Mega Power Plant (UMPP)
India
co financed by Housing & Urban Development Corporation Ltd., India Infrastructure Finance Company, Oriental Bank of Commerce, State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of India, State Bank of Indore, State Bank of Travancore, Vijaya Bank
The first of 16 Ultra Mega Power Projects (UMPPs) to be commissioned in India, the Tata Mundra UMPP is located in Tunda village at Mundra, in the Kutch district in Gujarat.…
Jaitapur nuclear power plant
India
The Jaitapur project plans to host two European Pressurised Reactors (EPRs) of 1,650 MWe each, with possible extension by four additional units. The Generation III+ class…
POSCO integrated steel project
India
POSCO, a South Korean multinational corporation and the world's fourth largest steel producer, seeks to establish an integrated steel venture in India's eastern state of…
Cheyyur Ultra Mega Power Plant Project (UMPP)
India
Cheyyur Ultra Mega Power Plant (UMPP) is a proposed coal-fired power station that when constructed is due to deliver 4,000 megawatts (MW) to the electrical grid. The power…
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Dodgy Deals abroad financed by banks from India
Great Barrier Reef Coal & Gas Exports
Australia
co financed by Axis Bank, ICICI Bank, State Bank of India
Australia is on the verge of an unprecedented coal boom. The epicentre of this expansion is the yet-to-be-developed Galilee Basin in Central Queensland. Galilee is the proposed…
Rampal Coal Based Thermal Power Plant
Bangladesh
co financed by Export-Import Bank of India
The Sundarbans, the largest mangrove forest in the world, is a living and effective natural fence protecting the coastal belt areas of Bangladesh, and a UNESCO World Heritage…
Mountain top removal coal mining
United States
co financed by State Bank of India
Mountain top removal (MTR) mining is a form of strip mining in which coal companies use explosives to blast as much as 800 to 1,000 feet off the tops of mountains order to…
check dodgy deals on record

India

Population: 1,241 million

GDP: 1.84 trillion USD (2011)

Companies located in India
Adani
India
co financed by Axis Bank, ICICI Bank, State Bank of India
Adani is a large Indian resources, logistics and energy company with big expansion plans. It was founded by Indian billionaire Gautam Adani, in 1988. It has coal mining interests…
Jindal Steel & Power
India
co financed by Axis Bank, Bank of India, HDFC Bank, ICICI Bank, State Bank of India
Jindal Steel and Power Limited (JSPL) is one of India's major steel producers with a significant presence in sectors like mining, power generation and infrastructure. It…
National Thermal Power Corporation (NTPC)
India
co financed by Axis Bank, Bank of India, Export-Import Bank of India, Government of India, ICICI Bank, IDFC, Life Insurance Corporation of India, State Bank of India
National Thermal Power Corporation is the largest electricity producer in India. In 2014, its total installed capacity was of 42,964 MW (including 5,974 MW through Joint…
Coal India
India
co financed by Enam Securities, Kotak Mahindra Finance, State Bank of India
Coal India is the biggest coal producer worldwide, majority-owned by the government of India. It was created in the 1970's when India's coal mining industry was nationalised…
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Companies abroad financed by banks from India
Bangladesh-India Friendship Power Company Limited
Bangladesh
co financed by Export-Import Bank of India
The Company Bangladesh-India Friendship Power Company (Pvt.) Limited (BIFPCL/the Company) is a Joint Venture Company duly incorporated in Bangladesh under the Companies Act…
Glencore
Switzerland
co financed by ICICI Bank, State Bank of India
Glencore plc (formerly Glencore Xstrata) is an Anglo-Swiss multinational commodity trading and mining company. The company was created through a merger of Glencore with Xstrata…
check company profiles on record

India

Population: 1,241 million

GDP: 1.84 trillion USD (2011)

2014 2013 2012

India

Population: 1,241 million

GDP: 1.84 trillion USD (2011)

India

Population: 1,241 million

GDP: 1.84 trillion USD (2011)

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banktrack tweets
"The Unesco report has termed the #Rampal EIA as incomplete and questionable." #SaveSundarbans https://t.co/USGV4yNsVP
Sep 25, 2016
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