Page 32 - Banking Finance July 2019

ARTICLE

INDIAN RETAIL

BANKING: ISSUES

OF SERVICE

QUALITY AND

CUSTOMERS'

SATISFACTION

Introduction in 1955. Banking institutions are very strong in performing
the immense role for sustainable financial system. Before
Healthy financial system is the pre condition for the proper
the nationalization of banking institution in India that is prior
growth and development of the economy in any country. In
to 1960 the growth rate of Indian economy was very slow
India the history of banking is age old. In the year of 1770,
due to lack of proper banking system in the country. Small
first bank was established in the name of Bank of Hindustan
consumers, retailers were unable to access this financial
which was liquidated during 1829-1832. Again the General
system for their financial prosperity and growth. After
Bank of India which was established in 1786 failed in 1791
drawing the attention of the policy makers of the economy,
due to various reasons. The State Bank of India is the oldest
the banking industry started to grow faster and
and largest bank which was earlier known as the Bank of
consequently trade, industry and commerce started to
Calcutta which later was renamed as the Bank of Bengal.
flourish.
Apart from this Bank of Bombay and Bank of Madras were
established in 1840 and 1843 respectively.
The benefits of establishing more and more financial
institution strengthen the macro economic fundamentals
In 1921 these three banks were merged and the Imperial
within the economy. Policy makers have rightly stressed upon
Bank of India was founded. After the independence of our
nationalization of the banking institution to use maximum
country this Imperial Bank became the State Bank of India
potential of these banking institutions, contributing in the
economic growth and development. Strong banking systems
About the author
were also needed for the infrastructural development within
Prof. Debayan Sengupta the economy. Financial institutions particularly the banking
Lecturer in Commerce (CWTT), system has benefited the economy in stopping the leakage
Department of Commerce, and bringing back the unused amount of savings from small
Syamaprasad College, Kolkata
investors or consumers to the financial system.
32 | 2019 | JULY | BANKING FINANCE