News Updates on “Tree man” Essay

On January 19, Shurmer (2010), a writer for the Comment News website wrote an article updating the site readers on the ongoing struggles of Richard Pennicuik, better known as â€Å"Tree man. † Since early December of the previous year, Tree man had been living in a gum tree near his house in Hume Road, in the City of Gosnells, as a form of protest and to save the tree from the city council plans to clear the street of any and all mature trees that may cause harm by dropping large limbs. As of the writing of the article, he had been in the tree for 43 days and was experiencing physical difficulties on top of his legal issues as there was a severe heatwave and the high temperatures were causing him discomfort. Entitled â€Å"‘Tree man’ loses hope,† the article chronicled Tree man’s fading optimism caused by heat-induced headaches; the council fining him $5000, as it deemed the platforms that served as his makeshift treehouse were illegal, and forcing him to remove these structures; and the abandonment of an adjacent gum tree by a rotating team who had occupied it for the same cause. A couple of months later on March 13th, a Staff Writer (2010) for Perthnow a local subsidiary of The Sunday Times, wrote a relatively more recent update piece on the Tree man. Asking â€Å"Tree man Richard Pennicuik for mayor? † the report comes on the heels of a stand-off the previous day wherein he still refused to come down from the tree even after policemen and tree-cutting machinery had arrived. Apparently, despite the previous report on his morale and health problems, he had stayed on the tree for another 53 days. The title of the article comes from a comment Tree man had made, saying he had intentions of running for city mayor as the current council he was battling was â€Å"laughable and unworkable. † An analytical comparison of these two Tree man news article updates will be discussed. The first, most noticeable, difference between the two news articles is their marked difference in length, with the first article much longer than the second. Although quantity does not necessarily denote substance, it can be observed that the Comment News article contains relatively more actual facts about the situation than the PerthNow article. In addition, on a related note, it can also be noticed that the former article has more content related to the actual subject, as denoted by the article title, than the latter. As an example to support both of these observations, although Comment News does not include a quote wherein Tree man explicitly stated that he was â€Å"losing hope,† it does mention why this would be the case by including a quote where he said he â€Å"didn’t cope well† with the heatwave headaches and how the $5000 fine would â€Å"ruin his family. † The PerthNow article, on the other hand, only justifies the title mentioning Tree man’s mayoral aspirations with the quote: â€Å"The current regime is laughable and unworkable and I want to get in there, if I have enough supporters, to run the council the way it should be run. † The rest of the article, however, does not mention the issue again and only contains a brief summary of the previous day’s stand-off and another quote from Tree man where he reasserts his stance. The Comment News article does seem to slightly force the â€Å"losing hope† theme though, by briefly mentioning that the street was desolate due to the abandonment of the adjacent gum tree, although Tree man is not mentioned as having an opinion on this. However, this observation still contributes to the discussion of the main subject. Coherence to a specific topic is somewhat of a requirement for any formal article, especially one that is professionally written. The briefness and lack of coherence in the case of the latter article can, however, can be attributed to the writer expecting the reades to already know the details as the situation was already months-long, and there was a climactic update the day before. Both articles do, however, paint Tree man as both a dedicated activist from his acts of defiance, and also a novelty character as the tones of his quotes in the first article are slightly rattled and dramatic and in the second, noticeably vague.He was also described as remaining â€Å"defiantly aloft† despite legal and physical danger, and his lawyer’s protests. References hurmer, J. (2010, January 19). ‘Tree man’ loses hope. Comment News. Retrieved from http://southern. inmycommunity. com. au/news-and-views/local-news/Tree-man-loses-hope/7546357/ Staff Writer. (2010, March 13) Tree man Richard Pennicuik for mayor? PerthNow. com. The Sunday Times. Retrieved from http://www. perthnow. com. au/news/tree-man-richard-pennicuik-for-mayor/story-e6frg12c-1225840398316

Politics & The English Language-By George Orwell Essay

1: Orwell’s thesis is somewhat stated, but also implied. His thesis is that any effect can become a cause, such that something that starts as an aid for a different ailment may eventually become detrimental. 2: Orwell’s analogy of the cause and effect of alcohol abuse to the demise of lanuage in paragraph two is very effective. It shows a chain reaction, where the person starts drinking alcohol to combat a problem in their live, but then the alcohol eventually leads to more difficult problems. 3: In Paragraph 4, Orwell uses a simile to compare â€Å"phrases tacked together† to â€Å"sections of a prefabricated henhouse†. That shows how prose consists of words that aren’t necessarily chosen for their meaning, but instead just because it’s easy. In Paragraph 12, Orwell uses a similie to compare someone â€Å"choking† to â€Å"tea leaves blocking a sink†, which shows how the author knows what he wants to say, but sometimes he has too many â€Å"stale phrases† in his head. In paragraph 15, Orwell uses a similie to compare â€Å"a mass of Latin words fall upon the facts† to â€Å"soft snow†, which blurs the outlines, and covers up the details. In paragraph 16, Orwell compares â€Å"his words† to â€Å"cavalry horses answering the bugle†, which create an analogy that is effective because both words and cavalry horses are powerful. 4: Removing the extensive uses of examples in paragraphs 5, 6, 7 and 8 weakens Orwell’s argument, and makes the passage less interesting and boring to read. The examples also aid Orwell’s credibility as a writer. 5: The additional information in the footnotes in paragraphs 7 and 8 serve to clarify and expand on his ideas. I believe that he made them footnotes, as opposed to putting the additional information right in the body of the essay, because putting the information in the body of the text would take away focus from what he was writing and the points he was trying to make. 6: Orwell may not have any doctoral qualifications to speak on language, but he establishes his ethos, his ethical appeal; by using an immense amount of examples. He should not of been more direct, he proved his point quite well in the way he already wrote the essay. 7: Orwell’s essay is organized quite exquisitely. He starts the essay with a few introductory paragraphs, then he lists 5 passages where what he just states applies, which is very good at proving his point. Then he speaks on four different sections: Dying Metaphors, Operators or Verbal False Limbs, Pretentious Diction, and Meaningless Words. He uses a ridiculous amount of examples throughout his essay. 8: Orwell’s purpose in writing the essay was to show how much language and wording can affect someone’s writing. His Post-WWII knowledge could aid the essay, because during WWII both sides (Axis & Allied) used propaganda to stress their point, and their propaganda used wording effects quite frequently to get their points across. 9: Orwell’s tone varies across the passage, but he is always trying to accomplish the same goal of the wording effect on language and writing.

Advertising Media Identification Essay Example | Topics and Well Written Essays - 1000 words

Advertising Media Identification - Essay Example These include future employment of the children, and the importance and nature of social interaction, which varies significantly between the two advertisements based on gender. Gender has long been something that has been of greatest concern to advertisers and to the advertising consuming public. It is of concern to advertisers because it is an incredibly important part of identity, and advertisers need to tap into identity needs to understand how to best sell to the public. It is of great concern for the public, however, because the public wants to be able to resist advertisers having undue influence on the development of those identities. These concerns are especially prevalent in the case of advertising for children. For some time the main concern of gender advertising has been associated with the main concern for advertising for adults: body image. Children’s advertisers tended to fall into the same techniques as advertisers for adults do: portraying â€Å"limited diversi ty in physical attributes† – usually meaning body type and skin color . But an emerging trend, demonstrated by two advertisements for Lego products, traditional Lego marketed towards boys and a new line, â€Å"Lego Friends,† marketed towards girls,... Both pairs then go on to enjoy their products in varied ways. When delving beyond the superficial, however, it becomes immediately clear that these two ads are not in fact portraying similar things at all, but are rather portraying very different things in regards to the appropriate work roles of people of different gender. The voiceover in the Lego advertisement describes a heavily masculine world view, where â€Å"a man’s home is his fortress,† and the father and son pair then go on to build a house together (Lego 2011). The emphasis here is on construction, and the images support this emphasis: not only is the house always growing and getting new additions, from towers and turrets to walls, windows and propellers, but the colors and patterns involved with those additions is constantly changing and rotating, indicating a flurry of activity on the part of the builders, who are constantly innovating and changing their structure. This thus not-so-subtly implies that a pr oper occupation for male-gendered people is to build things, to be involved with construction and with that kind of physical/mental labor, and that mans nature involves constantly tinkering and innovating to construct new things. It is thus not a stretch to argue that this advertisement perpetuates jobs that require those traits as being male roles: engineers who cannot stop tinkering, construction workers, architects and so on. This advertisement clearly sets out a number of characteristics that male-identified people should possess, and then makes those correspond with jobs and hobbies that men should thus supposedly be engaging in – things that involve using their hands and their heads. While the â€Å"Lego† advertisement is somewhat subtle in its

McDonalds Essay Example | Topics and Well Written Essays - 500 words

McDonalds - Essay Example They use renewable resources and quality control over the industry, which is done through random checks and random audits. The main weakness is the media backlash. On operations, the industry has on line and onsite kiosk job application systems and is the second largest employer in the U.S. on the marketing, sales the products are of high quality, and the industry promotes health and wellness campaign and product offerings and does a lot of consumer and market research. The company also makes promotions such as the Coca Cola endorsement promotion. Their services have a high accuracy and done in a clean environment and often accompanied with friendly customer service. However, the industry lacks employee apathy and some customers complain of dissatisfaction (Collier 2010). As is with other companies McDonalds relies on its resources for its capabilities and core competencies to be able to create value through this, McDonalds claims to have capabilities including its own employees and the training experiences provided to them. A global food vision and a stable of full time chefs in studios, which are located in Hong Kong, Munich, and Chicago, are some of the resources that are combined to form the firm’s product innovation capability. To make all this work is dependent on the firm’s organizational structure. McDonalds uses its resources to focus on being a better instead of concentrating on being big and this has been evident since the McDonald is becoming better through creating value for customers. Any strategies that the firm chooses must be based on its resources. The McDonalds uses its skills on human resources to lay a foundation of producing a number of new products to serve local customers. To implement a strategy the managers int egrate or combine different resources so that the firm is able to complete tasks. From the importance of resources, managers complete an internal analysis (Hess 2010). The McDonalds

Attitude Towards Work And Love Essay Example | Topics and Well Written Essays - 250 words

Attitude Towards Work And Love - Essay Example For the past 150 years, our attitude work and love has changed drastically. Initially, workers in their forties were considered wiser and more experienced, thus earning more as they age. With the most difficult jobs, their decisions were well-respected and honored. On one hand, those who were in their twenties were believed to lack such wisdom and strength since they are inexperienced.However, at the turn of the century, a shift directing attention to the physical attribution initiated the notion that middle-aged workers are less organized and stubborn as they are confronted by the decline in their mental and physical strength. Employers nowadays hire younger workers because they have fresher ideas since they believe â€Å"aging† employees become tolerant to change and inclined to â€Å"old† practices.Similarly, relationships have changed particularly on issues of ‘manhood’ and fidelity. To reaffirm their masculinity at mid-life, men resortedtokeep in shape and build muscles and getas much sex as possible.   Men who get involved with other women are now admired in the society more than those who remain celibate, instead of being mocked.Sleeping with other women other than his wife, particularly procreating even outside marriage isnow envied by the many.

The Politics of Public-Private Partnerships Literature review

The Politics of Public-Private Partnerships - Literature review Example The validity of his argument regarding the associated costs of PPPs is the essential point presented in this paper. Flinders’ major argument The article â€Å"The Politics of Public-Private Partnerships† is a particular argument that presents PPPs as potential factors that provide the opportunity for political issues and tensions to proliferate in the government (Flinders, 2005). According to Flinders, political issues and tensions are largely been overlooked, which may be eventually observed from the point of view of efficiency, risk, complexity, accountability and governance and the future of state projects. Through PPP, efficiency gains and service improvements in some policy areas may be observed, but based on the thoughts of Flinders these also have corresponding political and democratic costs. In other words, PPPs may have provided significant benefits at some point, but on the other hand, these can only be generated with substantial political and democratic costs . For Flinders, short-term benefits linked to PPPs may be outweighed by the long-term problems. Therefore, it emphasises more of the probable threats or risks. Thus, Flinders adopted the definition of PPP as a risk-sharing relationship existing between the public and private sectors just to result to the desired public policy outcome. In order to explicate this point, Flinders was able to subdivide his arguments into various sections. The first section deals with the Labour government’s approach to public sector reform since May 1, 1997. In the second section, the author examines Public Interest Companies (PICs) prior to a more detailed analysis of the Private Finance Initiative (PFI) in the UK. The third section introduces the framework to elaborate the idea of the political issues and debates around PPPs. Then finally, the last section provides information concerning the reasons why the government may commit to PPPs. Central to the idea concerning the first section is the p revailing diverse models of service delivery that the public and private sectors implemented. This at some point, according to Flinders provided the opportunity to the birth of political administrative perspective. The second section tries to enhance the idea of ‘back-door privitisation’ which may have potentially evolved from PICs down to PFI. In this case, various political concerns surfaced and the issue was far from monetary consideration. The third section introduces some relevant themes surrounding PPPs in the UK. Based on the argument of Flinders, these themes may have substantially provide opportunity for the public sectors to be served, but the bottom line of these themes may provide implication for the advantage only of the few and not the majority. The fourth section is a significant confirmation of the elemental drawbacks linked to controversial PFI deals. However, the government seems to have no other choice, but to continuously rely on the private sectors in the future to provide public services resulting to partnerships with associated political challenges. It is now important to consider some remarkable insights regarding the stand of Flinders on PPPs. Key insights In this section, the work at hand presents the key insights into the relationship between government and business based on the relevant points from the article. One major insight that can be generated from the article includes the point that the government is

Contract law Assignment Example | Topics and Well Written Essays - 750 words

Contract law - Assignment Example 150, 000. Mr. Robbins sought the services of an accountant who estimated his total estate to be in the region of ? 165, 000. He then advised him to forego the remainder of the debt owed and instead accept ? 10 in full settlement of the debt. It later turned out that Mr. Zute, who was known for his practical jokes had played one on the Plaintiff and had not even included him in his will. The Plaintiff then decided to reactivate the loan agreement. Mr. King after being asked to only pay ? 10 in full settlement of the debt had gone on to renounce material wealth and donated all his wealth. The court held that according to the principle of estoppel, the debt had been extinguished and therefore the Plaintiff had been estopped from claiming further payment. It is our view that the ruling of the Court of Appeal represents a gross injustice to our client who is denied his right to claim further payment. We hereby invite the court to overule this decision and decide in our favour. In analysin g this case, it is important to keep in mind the facts of this case. We shall look at several case laws while analysing this case. This case is more similar to Foakes v Beer (1884) 9 App Cas 605 where the court raised the question as to the sufficiency of consideration. In deciding this case, the court relied on the principles of  Pinnel's Case  [1602] 5 Co. Rep. 117a: i. ... Robbins than fulifllment of the whole debt. ii. However, it should be noted that payment of a lesser sum cannot be satisfaction of the whole debt simply because it is impossible for a lesser sum to satisfy a greater sum. But Mr. Robbins also received payment in a lesser sum and therefore this cannot be said to have settled the whole debt. It should be noted that the law merely requires that consideration be sufficient and note necessarily adequate. This means that consideration must be something of value (Ollek). The same was reiterated by Jim Riley (2012) in his article Elements of Contract- he stated that parties in a contract must receive something of value to act as consideration. It is of paramount importance to make a mental note of the essential elements of a contract which includes consideration inter alia. For a contract to be valid all these elements must be present. In Robbins vs King, the subsequent agreement did not meet this criteria. Not all the essential elements of a contract were there and therefore it cannot be said that an agreement had been made. There lacked consideration. The debate concerning substitute agreements was put to rest by Lord Denning in D & C Builders v Rees [1966] 2 QB 617. In this case, the Plaintiffs entered into a contract with Rees who was a shop owner. The work done in the shop amounted to ? 746. Rees paid ? 250 and received a ? 14 discount thus leaving his debt to amount to ? 482. The Plaintiffs experienced financial difficulties and became desperate for the money. Fully aware of their financial position, Rees offered to pay ? 300 in full settlement of the debt. The Plaintiffs stated that this would not satisfy the debt but since they were in dire need of the money they simply had to agree to take it. They signed an

Homeland Security Essay Example | Topics and Well Written Essays - 500 words

Homeland Security - Essay Example The essay "Homeland Security" talks about the illegal border crossings and human smuggling that are considered as imminent threats to homeland security. Within the context of the United States, the foretold issues are most important because they are interconnected with a global spread of terrorism. The problem of illegal border crossing and human smuggling are interconnected because the illegal immigrants seek the help of the human smugglers to enter the U.S. Zhang, makes clear that â€Å"In recent years human smugglers have focused their efforts on recruiting willing U.S. citizens to provide transportation services in the border area†. Besides, illegal border crossings mainly occur through the Mexican and Canadian borders. Most of the states in U.S. face the problem illegal immigration but the problem in severe in California, New York, and Illinois. The restrictions on immigration imposed by the federal government resulted in large scale illegal border crossings. The Southern border of the U.S. is used by the Mexicans for border crossing. The same route is used for human smuggling from different parts of the world. Illegal border crossings and human smuggling are controlled by powerful gangs for a profitable business. The flow of the illegal immigrants into the US is in terconnected with the phenomena of transnational population relocation. The problems surrounding the illegal alien in the US require a global view and suggest more diverse strategies than the history of immigration Law enforcement.

Ethical Codes and Particular Cases Essay Example | Topics and Well Written Essays - 500 words

Ethical Codes and Particular Cases - Essay Example McAliley’s ‘guilt or innocence’ but the court’s responsibility to remain keenly aware of its responsibility to remain consistent with dispensing justice. According to the case (Florida, 1997) Mr. McAliley filed:†   570 docket entries in the official Court records, including numerous Motions, Petitions, and Appeals by the Former Husband to which the Former Wife has been required to respond.†Ã‚  (No. 97-0418) The responsibility of the court, in this case, is to state precedent with respect to not actions but ‘causes’ of these five-hundred seventy or so filings. As in the case of Perich v Hosanna-Tabor Evangelical Church and School (heretofore: US 533) (US 553), the object of interest is an ever-increasing invasion in citizen’s domestic (divorce) issues since around 1969. The court involving themselves in divorce, at the behest of the legislature through the ‘emancipation of the Bolsheviks [circa 1917]’ finds diff iculties dealing with complex marital issues; and rightly so. Whether or not Counselor McAliley overstepped his ‘Ethical’ position under the rules of proper conduct is not the issue. The issue is the case being filed ‘no-fault/minimal fault divorce’ in a Florida court in the first place. The meritorious or frivolous nature of Counselor McAliley’s is based squarely upon the opinion of the judge presiding. Court’s must be left measuring only the rule of law; not the sensitivities or emotional ebbs of flows of societal discontents. Lawrence v Texas (US 558) seems to have drawn the line between government inspection and the limits of personal freedom of choice. For this paper, efforts were made to access the â€Å"Oklahoma no-fault divorce Bill† of 1953 to pursue knowledge of legal precedent considering no-fault/minimal fault divorce. To date there is very little information. Before 1953 (in the USA), divorce was an institutional manner handled by the church or related institutions

College and School Life Essay Example | Topics and Well Written Essays - 500 words

College and School Life - Essay Example The massive workload, demanding schedule, and culture shock combine to make university life far more stressful than high school. High school homework would be a welcome vacation to the college student that is carrying a full credit load. The necessity of solving a complex problem and writing a research paper on the results can bring the new student to the brink of a nervous breakdown. The desire to do well on a mathematics test can result in beads of perspiration and sweaty palms that were never there in high school. The intensity never ends as the stress of the university's standards makes the student long for the ease of high school subjects. A major component of doing well in college is doing the work on time. In high school the schedule is made for the student and there is little left to chance. However, college life demands that the student confront the challenges of 18 hour workdays, early morning classes, and conflicting schedules. College social life can be fun, but the student will risk their mental health by squeezing in a party in an already cramped routine. The high school student may suffer from the boredom of nothing to do, but the university freshman suffers the stress of never having enough time to do it. Confronting a new situation can be as stressful as it is rewarding.

Race and Color Discrimination Essay Example for Free

Race and Color Discrimination Essay Who are the major people that had made a different in the race and color movement? What as society done to improve the way to perceive other people that do not have the same color or race as us? This are all major questions people have in mind when trying to solve Racism affects people lives in many ways depending on race, gender, amp; class though gender usually goes with sexism. Though there have been many efforts to reduce its power it is still in life. Today there are still efforts being made and some have been successful such the racial boundaries Barack Obama has crossed despite being biracial and how many people are taking a stand. Racism today seems to affect mainly African Americans as some people are very prejudiced against them such as the Ku Klux Klan whose power may not be as strong as it once was still exists. The other ways that African Americans are affected are stereotypes. There countless even for other races for example me. I have mistaken to be Indian a lot of times and sometimes still am even though I am Bangladeshi. Some stereotypes for other races would be the Chinese and Japanese they are sometimes expected to be smart, have squinty eyes, and be a workaholic while they may be not. I know someone who is partly Japanese she does not seem to have squinty eyes nor is she a workaholic. Racism also comes to everyone’s lives through the way we exposed to it. For example go to some place and then be shut out because of the color of your skin or be cast out because youre Asian, African-American, or even middle eastern. For now that is all I can say but if youre not satisfied please leave a message on my bio page and/or improve it yourself in anyways you can.

Macbeth by William Shakespeare Essay Example for Free

Macbeth by William Shakespeare Essay Shakespeare wrote Macbeth between 1603 and 1606 for King James 1st (England) and 6th (Scotland). Its about a tale of royalty treachery heroes and witches. During the reign of Queen Elizabeth 1 the public were full of tales of witches and evil. Witchcraft was a subject that the English took very seriously. They believed that a witch had a third nipple under her arm. They burned women or threw them in lakes to see if they floated, if they did, they were sentenced to death. It is estimated that in Scotland between 1564 and 1603 eight thousand suspected witches were burned to death. These executions did not cease until the end of the seventeenth century. The sight of witches in an Elizabethan theatre would have been terrifying for the audience. For my English coursework on Macbeth I have chosen to look at act one scene one, two and three. This is due to the simple fact that it is the introduction to the play and indeed it sets the feel to the whole play In Shakespeares play, we open during a thunderstorm; this prepares us for the evil witches. Three witches come onto the stage: When shall we three meet again In thunder, lightning, or in rain? The first witch asks what the setting shall be for their next meeting, thunder, lightning and rain conditions that most people would find frightening and would stay away from. The second witch says that they will meet: When the hurlyburlys done, When the battles lost and won. We then find out that they are going to meet on the heath. They have insight into the future. The witches tell us that they are going to meet Macbeth. We do not know who Macbeth is or why the witches are meeting him, but we think that he must be evil because he is linked with the witches. Their familiars call to them and they disappear chanting: Fair is foul, and foul is fair: This expresses the main themes in the play, the reversal of fortunes, and the fact that appearance can be deceptive. And we later see Macbeth is fair in Duncans eyes but underneath he is foul, he will later betray Duncan. The opening scene is exactly thirteen lines long, thirteen is unlucky and in those times unlucky things were bad. So by this point the audience will have picked up that these are bad people. Scene two opens in a camp near the battlefield; King Duncan, Malcolm and Donalbain, his sons, and Lennox are present. They see a bleeding Captain and ask him how the battle is going. The Captain tells them how well Macbeth fights: For brave Macbeth well he deserves that name- Till he unseamed him from the nave to the chops, And fixed his head upon our battlements. This is portraying a picture of a tall and strong man who is highly regarded by the experienced fighters in the army. Duncan then praises Macbeth by calling him O valiant cousin, worthy gentleman This presents us with a very different view of the main character, a relative of the kings, well brought up, a courtier, but still highly regarded. The Captain then goes on to tell us of how Macbeth and Banquo responded to a fresh attack by the Norweyan lord, Sweno: they Doubly redoubled strokes upon the foe. Except they meant to bathe in reeking wounds, Or to memorise another Golgotha, I cannot tell- Macbeth and Banquo had fought back twice as hard as if they meant to kill every man there or to create a new burial ground, he could not tell. This shows how good and strong Macbeth is in battle. The Captain goes and Ross and Angus arrive. They tell Duncan that Bellonas bridegroom had won the battle. Macbeth had won and they were painting him as a god. They also tell Duncan that the Thane of Cawdor was a traitor, Duncan decides to reward Macbeth by giving him the Thane of Cawdors title. This is ironic because Macbeth will become a traitor too. We now have two opinions of Macbeth, one evil Macbeth, linked to the witches, and one good Macbeth, a noble warrior who has fought well in battle to protect his country. The third scene is set on the heath, the witches are there, and telling each other what they have been doing since they last met. The first witch wants to put a spell on a sailor whose wife refused to give her chestnuts. She is going to toss his ship about and make sure that he does not sleep. This is reflected when Macbeth can not sleep later on in the play. The third witch shouts: A drum, a drum! Macbeth doth come. They know that it is Macbeth, this too shows the witches insight. A drum is significant because it is a military symbol. We now meet Macbeth and Banquo. The first words Macbeth say are: So fair and foul a day I have not seen. This reflects the words of the witches: Fair is foul, and foul is fair. Which tells us that he is in tune with them and therefore in tune with evil. It is Macbeth who demands to hear what the witches have to say: Speak, if you can: what are you? They acclaim him: All hail Macbeth! Hail to thee, Thane of Glamis! All hail Macbeth! Hail to thee, Thane of Cawdor! All hail Macbeth! That shalt be king hereafter! Macbeth starts and Banquo asks him why. The witches have seen his thoughts and know his ambitions, he is afraid to hear that other people know his desires. Banquo asks them what the future holds for him and the witches reply: Hail! Hail! Hail! Lesser than Macbeth, and greater. Not so happy, yet much happier. Thou shalt get kings, though thou be none: Then they disappear again into the mist. Macbeth is not happy with the information he has received and demands that they stay and tell him how he is to become Thane of Cawdor and the king. The audience will now be itching to see if the latest predictions are true: after all, the previous have all now happened. Ross and Angus arrive on the scene, they have come from the king to award Macbeth with the title of the Thane of Cawdor. Macbeth doesnt know that the Thane has been sentenced to death for betraying the king: The thane of Cawdor lives. why do you dress me In borrowed robes? Banquo is amazed that the witches are right: What, can the devil speak true? Macbeth thinks to himself: Glamis, and thane of Cawdor: The greatest is behind. He thinks that they are evil and will bring about Macbeths downfall: And oftentimes, to win us to our harm, The instruments of darkness tell us truths, Win us with honest trifles, to betrays In deepest consequence. Macbeth thinks about Banquos words and fights with his ambition and decides to let fate take its course: If chance will have me king, why chance may crown me, Without my stir. In any screen version, Macbeth on the Estate, I expect a great warrior, respected by the king and fellow noblemen of Scotland. His best friend, Banquo is always by his side, and both dressed in armour coming from battle, with wounds. Macbeth should be about thirty-five to forty, he should be strong and masculine, as he has the strength to unseam a man: from the nave to the chops. I review now two modern interpretations of the play the first will be, Macbeth on the Estate is set on the Ladywood Estate in Birmingham; this is the first difference between the screen version and the text. We open on a desolate estate, you can hear the wind, it is misty, dull, dark and grey. The high rise flats break the skyline. The ground is covered in mud and rubble, something used to be there but has been destroyed. A character comes on scene, he isnt a witch, he is the Thane of Fife, Macduff. He is wearing a black tracksuit and speaks with a Jamaican accent, his words have rhythm. He tells us that what we are about to see, that Duncan is king and that he has become fat and lazy, he is no longer a good king. He tells us that there had been some problems and Duncan had told Macbeth to sort them out. The screen blacks and we see the title, when we return, we get a view from a smashed window, signifying violence. There is eerie music playing in the background, the estate is empty, abandoned. We get a clip of an alley, there are rats running around in it, this shows disease, dirt and decay. We then get a shot of a building, and a shot of another building with some children playing outside it, some men come along and they run away. The camera moves to the inside of a house, the door is kicked in and the men run into the house. The characters are introduced by freeze-frame the first man, the leader is Macbeth, he is wearing jeans and a dark jumper, this may suggest that he is evil. The other characters are introduced including Duncan, who is not at the battle. He is in a Public House; smoking and drinking, he is wearing a bright shirt, which is not buttoned, he is lazy and immoral, he is not as nice a king as Shakespeares Duncan. This makes Macbeth seem less evil when he kills him. The production is not about good fighting evil, it is about bad fighting worse. Shakespeare meant this as a morality play, however this is not a moral king and I feel that it makes me feel more sympathy for Macbeth when he betrays Duncan. The camera brings us back to the house, they are using pepper spray and baseball bats. The image is extremely violent. The television is switched on and Macbeth is distracted by it. The National Lottery is on, he seems drawn to it and is then disgusted by it and smashes the screen. Upstairs Malcolm and Macduff are fighting when they see the Thane of Cawdor, Malcolm jumps out the window Macduff is pushed down the stairs and they go back to tell Duncan. Macbeth comes up the stairs and gets trapped with Banquo. We go back to the Public House, where Malcolm and Macduff have just arrived Macduff keeps pushing Malcolm away. He tells Duncan of how the battle is progressing. This is the role of the Captain in the play. In the play we dont see the battle, this shows us a more violent side to Macbeth, however it shows him as a warrior, not just a nobleman and a loving husband. We hear that Macbeth has won the battle and all the men are praising him. Duncan decides to reward Macbeth with the title the Thane of Cawdor, he sends men to kill the present Cawdor and deliver the message to Macbeth. We then have another extra scene, they drag Cawdor to a car. Three children, the witches, have just broken the window. Cawdor is shut in the car and Malcolm sets it alight. He takes his punishment and does not attempt to escape. A close up on his face shows his disclaim for the learning Malcolm I think that Macbeth would do the same, they are alike, they are both traitors. The camera then follows the black smoke upwards. The eerie music is still playing in the background. We see Macbeth and Banquo walking past a building, voices start to shout from windows and doorways. The voices get faster and come from all over the building. The camera follows the sound. Macbeth moves to go into the building, he seems drawn to it, Banquo tries to stop him but he walks in. They go up some stairs, Macbeth seems to be following something and leads Banquo under some low gaps in the wall to a room. They go in and the witches are standing there. There are candles and tarot cards in the room. They speak to him and he scorns them. The witches are not as frightening as Shakespeares witches are; they do not have the same effect. A car horn beeps and Banquo leaves, Macbeth lingers, again drawn to the evil, and keeps looking at them, walking backwards through the door. They walk out onto the balcony, Macduff and Ross are waiting in a car below, and they tell Macbeth that he is the new Thane of Cawdor and that the old Thane is dead. They get into the car to go to Duncan. We get a close-up of Macbeth in the car, he looks out of the window and thinks about all that has happened if chance shall have me King, why chance may crown me Without my stir Ross is saying the porters speech; this scene is used after the murder of Duncan in the play. They reach the public house and again Macbeth is the first person to come through the door, he gives Duncan money and then starts a pretend fight with him. Duncan gives him his ring as a reward, he has a tattoo saying love on his hand. I think that this shows that he is close to Macbeth. The scenes in the screen version are not in the same order as in the play. The actors are using Shakespearean language in a modern setting. I do not think that this works well. I think that the Macbeth on the screen reacts well with the witches, he is drawn to them. The screen version of Macbeth is not what I imagined him to be like; he is not a well-built man. Banquo is closer to my image of Macbeth. He does not seem to be in an army, whereas in the play there was a military tie with the drum. The fight seems to be a turf-war over drugs. Duncan is not as moral as Shakespeare made him, he smokes and drinks alcohol, he is not a good king. The setting is different, the scenes are not the same, and the morality aspect has changed. The screen version does not portray Macbeth as the tragic hero. He is not the Macbeth I expected to see. The second screen version I am going to look at is Granada, again I expected to see a great warrior, but now I am more curious after seeing the Macbeth on Macbeth on the estate. The Granada version shows us an even more futuristic view of Macbeth but this time it uses actual warriors instead of vicious gangs of thugs, and they are actually fighting another country. We open on the wasteland with the witches. There are lots of bodies and old rubbish skips it looks as though there has been a battle fought here recently. We get a camera shot of the witches robbing the bodies anybody watching the scene can tell that these people are bad, evil almost as robbing the dead is frowned upon by anyone. The witches are dressed in rags and torn cloths they are grubby, they have rotten teeth and are wearing tacky plastic jewellery, They look like tramps. As they each say their lines we get a close up of each witch. When shall we three meet again I can see a middle aged woman rushing to strip the riches of a dead body, when the witches are all finished talking to each other we see them running away from the bodies and disappearing into thin air. there to meet with Macbeth Clutching watches in their hands. The camera then cuts a close up of Macbeth. This time Macbeth looks like I expected he looks strong, he looks like a warrior and he looks braver than the Macbeth we have seen from Macbeth on the estate. The camera cuts to scene two upon a hill in the country side with Duncan, Malcolm an Donalbain, Malcolms sons and Lennox standing talking, we are not told that is who they are but any one who has seen Macbeth before will know that this is who they are. With an explosion the Captain arrives war torn and bleeding, he staggers up the hill towards the group of man with his rifle slung over his back. His rifle is the currant issue weapon to the British Army so again it shows the modern aspect of the play. The Captain falls to the ground I front of the men, Duncan grabs hold of the Captain and shakes him. I can see that this Duncan is also more healthier than the king from Macbeth on the estate, he demands to know what is happening with the war and what about Macbeth. The Captain tells him that they have won the battle and that Macbeth has unseamed a mans body from his nave to his chops. The group all cheer at this they are all proud of their warrior Macbeth. Duncan then realises the Captain and orders someone to take a look at his wounds. Then with another explosion Angus and Ross appear they give the king the news of the Thane of Cawdors betrayal, king Duncan gives the order of the Thane to be killed and Macbeth to be given his title. They turn and leave down the hillside with their guns slung over their backs. The next scene begins in an original sort of way as Macbeth and Banquo riding down towards the wasteland on scramblers. This indeed is futuristic portrayal of the events, maybe the scramblers are there to represent the horses. They are now walking through the wasteland and spot the witches the viewers can now see that the witches predictions are true. Banquo spots them huddled around a fire and asks Macbeth what they are, Macbeth draws his gun and asks them to speak to him. They tell Macbeth his fortune and make paper crowns to symbolise the king, Macbeth is shocked by this and bites his nails, Banquo is questioning why Macbeth is worried and shocked by what the witches have to say. He then goes on to ask the witches what will become of him he seems happy. The witches then burn the crown in a nearby fire, they disappear in a star-trek like way again. Macbeth breaks out of his trance and calls for the witches to come back. I can see the power on his face he is almost annoyed that they are leaving it shows that he likes what they are saying. Its like saying goodbye to all the things he has ever wished for. Almost as soon as the witches leave there is another gunshot as Ross and Angus arrive, Macbeth is told that he has become the thane, he still seems shaken by the witches and now he seems disturbed. He turns his back on Ross, Banquo and Angus, this is what he will go on to do later on in the play to betray all the ones he knows on his quest to be King. He has his gun pressed against his cheek, he likes the power of the gun it makes him feel power, something that he longs to have, and we can hear his thoughts if chance will have me king, why chance may crown me, without my stir We can see instead of fighting everyone to become king he is waiting for chance to crown him, or make him king. He turns to his comrades and says Till then enough come now friends He calls them friends now but would he be calling them friends if he knew he was going to kill his best friend Banquo Out of the two screen versions I prefer this one it presents the Macbeth I think of when I read Shakespeares Macbeth. It shows good camera work to add to the effects. In this version the scenes are in the same order as the book unlike Macbeth on the estate which muddles them around. I also think the witches are better portrayed as adults they seem more evil robbing the bodies. This Duncan is a good king I think this makes Macbeth seem even worse when he goes to kill him it shows that he is willing to kill good people to get where he wants to be. The war seems to be a proper war over land the way it would have been in Shakespeares time, not over drugs. This Screen version does portray Macbeth as the tragic hero I expected to see after first reading the book. Macbeth in both versions seems in a trance like state while the witches are around I think this is significant because the witches could be setting a spell on him.

History and Development of Banks in India

History and Development of Banks in India INTRODUCTION: The banking industry in India seems to be unaffected from the global financial crises which started from U.S in the last quarter of 2008. Despite the fallout and nationalization of banks across developed economies, banks in India seems to be on the strong fundamental base and seems to be well insulated from the financial turbulence emerging from the western economies. The Indian banking industry is well placed as compare to their banking industries western counterparts which are depending upon government bailout and stimulus packages. The strong economic growth in the past, low defaulter ratio, absence of complex financial products, regular intervention by central bank, proactive adjustment of monetary policy and so called close banking culture has favored the banking industry in India in recent global financial turmoil. Although there will no impact on the Indian banking system similar to that in west but the banks in India will adopt for more of defensive approach in credit disburs al in coming period. In order to safe guard their interest, banks will follow stringent norms for credit disbursal. There will be more focus on analyzing borrower financial health . A nation with 1 billion plus, India is the fastest growing country in terms of population and soon to overtake China as worlds largest populated country. The discerning impact on the over-stretched limited resources explains why India always tends to be deficient in infrastructure and opportunity. The largest economy of the world often frustrated researchers, as there was no single predictable pattern of the market; the multiplicity of government regulations and widespread government ownership had always kept investors away from exploring the vast Indian market. However, with India being liberalised today, banking intermediation has been playing a crucial role in economic development through its credit channel. Foreign banks have entered the soil but that has not yet posed a threat to the vast network of public sector banks that still conduct 92% of banking business in India. Banking in India has undergone a major revamp. It has come a long way since its creation which dates back to the British era. The present banking systems has come into place after many transformations from the Older systems. Against this background the present chapter deals with the evolution of the Indian Banking systems, the various reforms that has been made to make banks more effective, the role of private and foreign sector banks and last the challenges the Indian banks faces in the New Millennium . The banking system is central to a nations economy. Banks are special as they not only accept and deploy large amounts of uncollateralised public funds in a fiduciary capacity, but also leverage such funds through credit creation. In India, prior to nationalisation, banking was restricted mainly to the urban areas and neglected in the rural and semi-urban areas. Large industries and big business houses enjoyed major portion of the credit facilities. Agriculture, small-scale industries and exports did not receive the deserved attention. Therefore, inspired by a larger social purpose, 14 major banks were nationalised in 1969 and six more in 1980. Since then the banking system in India has played a pivotal role in the Indian economy, acting as an instrument of social and economic change. The rationale behind bank nationalisation has been succinctly put forth by eminent bankers: Many bank failures and crises over two centuries, and the damage they did under laissez faire conditions; the needs of planned growth and equitable distribution of credit, which in privately owned banks was concentrated mainly on the controlling industrial houses and influential borrowers; the needs of growing small scale industry and farming regarding finance, equipment and inputs; from all these there emerged an inexorable demand for banking legislation, some government control and a central banking authority, adding up, in the final analysis, to social control and nationalisation (Tandon, 1989). Post nationalisation, the Indian banking system registered tremendous growth in volume. Despite the undeniable and multifold gains of bank nationalization, it may be noted that the important financial institutions were all state owned and were subject to central direction and control. Banks enjoyed little autonomy as both lending and deposit rates were controlled until the end of the 1980s. Although nationalisation of banks helped in the spread of banking to the rural and hitherto uncovered areas, the monopoly granted to the public sector and lack of competition led to overall inefficiency and low productivity. By 1991, the countrys financial system was saddled with an inefficient and financially unsound banking sector. Some of the reasons for this were (i) high reserve requirements, (ii) administered interest rates, (iii) directed credit and (iv) lack of competition (v) political interference and corruption. As recommended by the Narasimham Committee Report (1991) several reform mea sures were introduced which included reduction of reserve requirements, de-regulation of interest rates, introduction of prudential norms, strengthening of bank supervision and improving the competitiveness of the system, particularly by allowing entry of private sector banks. With a view to adopting the Basel Committee (1988) framework on capital adequacy norms, the Reserve Bank introduced a risk-weighted asset ratio system for banks in India as a capital adequacy measure in 1992. Banks were asked to maintain risk-weighted capital adequacy ratio initially at the lower level of 4 per cent, which was gradually increased to 9 per cent. Banks were also directed to identify problem loans on their balance sheets and make provisions for bad loans and bring down the burgeoning problem of non-performing assets. The period 1992-97 laid the foundations for reform in the banking system (Rangarajan, 1998). The second Narasimham Committee Report (1998) focussed on issues like strengthening of th e banking system, upgrading of technology and human resource development. The report laid emphasis on two aspects of banking regulation, viz., capital adequacy and asset classification and resolution of NPA-related problems. Commercial banks in India are expected to start implementing Basel II norms with effect from March 31, 2007. They are expected to adopt the standardised approach for credit risk and the basic indicator approach for operational risk initially. After adequate skills are developed, both at the banks and at the supervisory levels, some banks may be allowed to migrate to the internal rating based (IRB) approach (Reddy 2005). At present, banks in India are venturing into non-traditional areas and generating income through diversified activities other than the core banking activities. Strategic mergers and acquisitions are being explored and implemented. With this, the banking sector is currently on the threshold of an exciting phase. Against this backdrop, this paper endeavours to study the important banking indicators for the last 25-year period from 1981 to 2005. These indicators have been broadly grouped into different categories, viz., (i) number of banks and offices (ii) deposits and credit (iii) investments (iv) capital to risk-weighted assets ratio (CRAR) (v) non performing assets (NPAs) (vi) Income composition (vii) Expenditure composition (viii) return on assets (ROAs) and (ix) some select ratios. Accordingly, the paper discusses these banking indicators in nine sections in the same order as listed above. The paper concludes in section X by drawing important inferences from the trends of these di fferent banking parameters. The number of offices of all scheduled commercial banks almost doubledfrom 29,677 in 1980 to 55,537 in 2005. This rapid increase in the number of bank offices is observed in the case of all the bank groups. However, the number of banks in the case of foreign bank group and domestic private sector bank group decreased from 42 in 2000 to 31 in 2005 and from 33 in 2000 to 29 in 2005, respectively. This fall in the number of banks is reflective of the consolidation process and, in particular, the mergers and acquisitions that are the order of the banking system at present (Table 1). BANKING IN THE OLDER DAYS Banking is believed to be a part of Indian society from as early as Vedic age; transition from mere money lending to banking must have happened before Manu, the great Hindu jurist, who had devoted a large section of his work to deposits and advances and also formulated rules for calculating interest on both 1. During the Mogul period indigenous bankers (rich individuals or families) helped foreign trades and commerce by lending money to the business. It was during the East Indian period when agency houses started managing the banking business. The first Joint Stock bank India saw came in 1786 named the General Bank of India followed by the Bank of Hindustan and the Bengal Bank. Only the Bank of Hindustan continued to be in the show until 1906 while the other two disappeared in the meantime. East India Company established three banks in first half of 19th century: the Bank of Bengal in 1809, the Bank of Bombay in 1840, and the Bank of Madras in 1843. Eventually these three banks (which used to be referred to as Presidency Banks) were made independent units and they really did well for almost a century. In 1920, these three were amalgamated and a new Imperial Bank of India was established in 1921. Reserve Bank of India Act was passed in 1934 and finally in 1935, the Central Bank was created and christened as Reserve Bank of India. Imperial Bank was undertaken as State Bank of India after passing the State Bank of India Act in 1955. During the last phase of freedom fighting (Swadeshi Movement) few banks with purely Indian man agement were established like Punjab National bank (PNB), Bank of India (BoI) Ltd, Canara Bank Ltd, Indian Bank Ltd, the Bank of Baroda Ltd, the Central Bank of India Ltd, etc.July 19, 1969 was an important day in the history of Indian banking industry. Fourteen major banks of the country were nationalised and on April 15, 1980 six more commercial private banks were taken over by the Indian government. In the wake of liberalisation that started in the last decade a few foreign banks entered the foray of commercial banks. To date there are around 40 banks of foreign origin that are  operating in the market, like ABN AMRO Bank, ANZ Grindlays Bank, American Express Bank, HSBC Bank, Barclays Bank and Citibank groups to name a few major of them. HISTORY OF INDIAN BANKS: We can identify three distinct phases in the history of Indian Banking. Early phase from 1786 to 1969 Nationalisation of Banks and up to 1991 prior to banking sector Reforms New phase of Indian Banking with the advent of Financial Banking Sector Reforms after 1991. The first phase is from 1786 to 1969, the early phase up to the nationalisation of the fourteen largest of Indian scheduled banks. It was also the traditional or conservative phase of Indian Banking. The advent of banking system of India started with the establishment of the first joint stock bank, The General Bank of India in the year 1786. After this first bank, Bank of Hindustan and Bengal Bank came to existence. In the mid of 19th century, East India Company established three banks The Bank of Bengal in 1809, The Bank of Bombay in 1840, and bank of Madras in 1843. These banks were independent units and called Presidency banks. These three banks were amalgamated in 1920 and a new bank, Imperial Bank of India was established. All these institutions started as private shareholders banks and the shareholders were mostly Europeans. The Allahabad Bank was established in 1865. The next bank to be set up was the Punjab National Bank Ltd., which was established with its headquarters at La hore in 1894 for the first time exclusively by Indians. Most of the Indian commercial banks, however, owe their origin to the 20th century. Bank of India, Central Bank of India, Bank of Baroda, the Canara Bank, the Indian Bank, and the Bank of Mysore were established between 1906 and 1913. The last major commercial bank to be set up in this phase was the United Commercial Bank in 1943. Earlier the establishment of Reserve Bank of India in 1935 as the central bank of the country was an important step in the development of commercial banking in India. The history of joint stock banking in this first phase was characterised by slow growth and periodic failures. There were as many as one thousand one hundred banks, mostly small banks, failed during the period from 1913 to 1948. The Government of India concerned by the frequent bank failures in the country causing miseries to innumerable small depositors and others enacted The Banking Companies Act, 1949. The title of the Act was changed as Banking Regulation Act 1949, as per amending Act of 1965 (Act No.23 of 1965). The Act is the first regulatory step undertaken by the Government to streamline the functioning and activities of commercial banks in India. Reserve Bank of India as the Central Banking Authority of the country was vested with extensive powers for banking supervision. Salient features of the Act are discussed in a separate page/article At the time of Independence of the country in 1947, the banking sector in India was relatively small and extremely weak. The banks were largely confined to urban areas, extending loans primarily to trading sector dealing with agricultural produce. There were a large number of commercial banks, but banking services were not available at rural and semi-urban areas. Such services were not extended to different sectors of the economy like agriculture, small industries, professionals and self-employed entrepreneurs, artisans, retail traders etc. DRAW BACK OF INDIAN BANKING SYSTEM BEFORE NATIONALISATION Commercial banks, as they were privately owned, on regional or sectarian basis resulted in development of banking on ethnic and provincial basis with parochial outlook. These Institutions did not play their due role in the planned development of the country. Deposit mobilisation was slow. Public had less confidence in the banks on account of frequent bank failures. The savings bank facility provided by the Postal department was viewed a comparatively safer field of investment of savings by the public. Even the deficient savings thus mobilised by commercial banks were not channeled for the development of the economy of the country. Funds were largely given to traders, who hoarded agricultural produce after harvest, creating an artificial scarcity, to make a good fortune in selling them at a later period, when prices were soaring. The Reserve Bank of India had to step in at these occasions to introduce selective credit controls on several commodities to remedy this situation. Such cont rols were imposed on advances against Rice, Paddy, Wheat, Other foodgrains (like jowar, millets, ragi etc.) pulses, oilseeds etc. When the country attained independence Indian Banking was exclusively in the private sector. In addition to the Imperial Bank, there were five big banks each holding public deposits aggregating Rs.100 Crores and more, viz. the Central Bank of India Ltd., the Punjab National Bank Ltd., the Bank of India Ltd., the Bank of Baroda Ltd. and the United Commercial Bank Ltd. Rest of the banks were exclusively regional in character holding deposits of less than fifty Crores. Government first implemented the exercise of nationalisation of a significant part of the Indian Banking system in the year 1955, when Imperial Bank of India was Nationalised in that year for the stated objective of extension of banking facilities on a large scale, more particularly in the rural and semi-urban areas, and for diverse other public purposes to form State Bank of India. SBI was to act as the principal agent of the RBI and handle banking transactions of the Union State Governments throughout India. The step w as in fact in furtherance of the objectives of supporting a powerful rural credit cooperative movement in India and as recommended by the The All-India Rural Credit Survey Committee Report, 1954. State Bank of India was obliged to open an accepted number of branches within five years in unbanked centres. Government subsidised the bank for opening unremunerative branches in non-urban centres. The seven banks now forming subsidiaries of SBI were nationalised in the year 1960. This brought one-third of the banking segment under the direct control of the Government of India. But the major process of nationalisation was carried out on 19th July 1969, when the then Prime Minister of India, Mrs.Indira Gandhi announced the nationalisation of fourteen major commercial banks in the country. One more phase of nationalisation was carried out in the year 1980, when seven more banks were nationalised. This brought 80% of the banking segment in India under Government ownership. The country entered the second phase, i.e. the phase of Nationalised Banking with emphasis on Social Banking in 1969/70. Chronology of Salient steps by the Government after Independence to Regulate Banking Institutions in the Country 1949: Enactment of Banking Regulation Act. 1955 (Phase I): Nationalisation of State Bank of India 1959 (Phase II): Nationalisation of SBI subsidiaries 1961: Insurance cover extended to deposits 1969 (Phase III): Nationalisation of 14 major banks 1971: Creation of credit guarantee corporation 1975: Creation of regional rural banks 1980 (Phase IV): Nationalisation of seven banks with deposits over 200 crores. Shortcomings in the Functioning of Nationalised Banking Institutions However Nationalised banks in their enthusiasm for development banking, looking exclusively to branch opening, deposit accretion and social banking, neglected prudential norms, profitability criteria, risk-management and building adequate capital as a buffer to counter-balance the ever expanding risk-inherent assets held by them. They failed to recognise the emerging non-performing assets and to build adequate provisions to neutralise the adverse effects of such assets. Basking in the sunshine of Government ownership that gave to the public implicit faith and confidence about the sustainability of Government-owned institutions, they failed to collect before hand whatever is needed for the rainy day. And surfeit blindly indulged is sure to bring the sick hour. In the early Nineties after two decades of lop-sided policies, these banks paid heavily for their misdirected performance in place of pragmatic and balanced policies. The RBI/Government of India has to step in at the crisis-hour to implement remedial steps. Reforms in the financial and banking sectors and liberal re capitalisation of the ailing and weakened public sector banks followed. However it is relevant to mention here that the advent of banking sector reforms brought the era of modern banking of global standards in the history of Indian banking. The emphasis shifted to efficient, and prudential banking linked to better customer care and customer service. The old ideology of social banking was not abandoned, but the responsibility for development banking is blended with the paramount need for complying with norms of prudency and efficiency. Composition of Indian Banking System The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions 2. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look into their existing portfolio offering. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now quoting al higher valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the high revenue niche retail segments. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks (banks owned by the government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The banking system has three tiers. These are the scheduled commercial banks; the Regional rural banks which operate in rural areas not covered by the scheduled banks; And the cooperative and special purpose rural banks. Under the ambit of the nationalized banks come the specialized banking institutions. These co-operatives, rural banks focus on areas of agriculture, rural development etc., unlike commercial banks these co-operative banks do not lend on the basis of a prime lending rate. They also have various tax sops because of their holding pattern and lending structure and hence have lower overheads. This enables them to give a marginally higher percentage on savings deposits. Many of these cooperative banks diversified into specialized areas (catering to the vast retail audience) like car finance, housing loans, truck finance etc. In order to keep pace with their public sector and private counterparts, the co-operative banks too have invested heavily in information technology to offer high-end computerized banking services to its clients. Given below is the total list of banks operating in India. SCHEDULED AND NON SCHEDULED BANKS There are approximately Eighty scheduled commercial banks, Indian and foreign; almost Two Hundred regional rural banks; more than Three Hundred Fifty central cooperative banks, Twenty land development banks; and a number of primary agricultural credit societies. In terms of business, the public sector banks, namely the State Bank of India and the nationalized banks, dominate the banking sector.India had a fairly well developed commercial banking system in existence at the time of independence in 1947. The Reserve Bank of India (RBI) was established in 1935. While the RBI became a state owned institution from January 1, 1949, the Banking Regulation Act was enacted in 1949 providing a framework for regulation and supervision of commercial banking activity. The first step towards the nationalisation of commercial banks was the result of a report (under the aegis of RBI) by the Committee of Direction of All India Rural Credit Survey (1951) which till today is the locus classicus on the subject. The Committee recommended one strong integrated state partnered commercial banking institution to stimulate banking development in general and rural credit in particular. Thus, the Imperial Bank was taken over by the Government and renamed as the State Bank of India (SBI) on July 1, 1955 with the RBI acquiring overriding substantial holding of shares. A number of erstwhile banks owned by princely states were made subsidiaries of SBI in 1959. Thus, the beginning of the Plan era also saw the emergence of public ownership of one of the most prominent of the commercial banks. The All-India Rural Credit Survey Committee Report, 1954 recommended an integrated approach to cooperative credit and emphasised the need for viable credit cooperative societies by expanding their area of operation, encouraging rural savings and diversifying business. The Committee also recommended for Government participation in the share capital of the cooperatives. The report subsequently paved the way for the present structure and composition of the Cooperative Banks in the country There was a feeling that though the Indian banking system had made considerable progress in the 50s and 60s, it established close links between commercial and industry houses, resulting in cornering of bank credit by these segments to the exclusion of agriculture and small industries. To meet these concerns, in 1967, the Government introduced the concept of social control in the banking industry. The scheme of social control was aimed at bringing some changes in the management and distribution of credit by the commercial banks. The close link between big business houses and big banks was intended to be snapped or at least made ineffective by the reconstitution of the Board of Directors to the effect that 51 per cent of the directors were to have special knowledge or practical experience. Appointment of whole-time Chairman with special knowledge and practical experience of working of commercial banks or financial or economic or business administration was intended to professionalise t he top management. Imposition of restrictions on loans to be granted to the directors concerns was another step towards avoiding undesirable flow of credit to the units in which the directors were interested. The scheme also provided for the take-over of banks under certain circumstances. Political compulsion then partially attributed to inadequacies of the social control, led to the Government of India nationalising, in 1969,fourteen major scheduled commercial banks which had deposits above a cut-off size. The objective was to serve better the needs of development of the economy in conformity with national priorities and objectives. In a somewhat repeat of the same experience, eleven years after nationalisation, the Government announced the nationalisation of seven more scheduled commercial banks above the cut-off size. The second round of nationalisation gave an impression that if a private sector bank grew to the cut-off size it would be under the threat of nationalisation. From the fifties a number of exclusively state-owned development financial institutions (DFIs) were also set up both at the national and state level, with a lone exception of Industrial Credit and Investment Corporation (ICICI) which had a minority private share holding. The mutual fund activity was also a virtual monopoly of Government owned institution, viz., the Unit Trust of India. Refinance institutions in agriculture and industry sectors were also developed, similar in nature to the DFIs. Insurance, both Life and General, also became state monopolies. REFORM MEASURES The major challenge of the reform has been to introduce elements of market incentive as a dominant factor gradually replacing the administratively coordinated planned actions for development. Such a paradigm shift has several dimensions, the corporate governance being one of the important elements. The evolution of corporate governance in banks, particularly, in PSBs, thus reflects changes in monetary policy, regulatory environment, and structural transformations and to some extent, on the character of the self-regulatory organizations functioning in the financial sector. Policy Environment During the reform period, the policy environment enhanced competition and provided greater opportunity for exercise of what may be called genuine corporate element in each bank to replace the elements of coordinated actions of all entities as a joint family to fulfill predetermined Plan priorities. Greater competition has been infused in the banking system by permitting entry of private sector banks (Nine licences since 1993), and liberal licensing of more branches by foreign banks and the entry of new foreign banks. With the development of a multi-institutional structure in the financial sector, emphasis is on efficiency through competition irrespective of ownership. Since non-bank intermediation has increased, banks have had to improve efficiency to ensure survival. REGULATORY ENVIRONMENT Prudential regulation and supervision have formed a critical component of the financial sector reform programme since its inception, and India has endeavored to international prudential norms and practices. These norms have been progressively tightened over the years, particularly against the backdrop of the Asian crisis. Bank exposures to sensitive sectors such as equity and real estate have been curtailed. The Banking Regulation Act 1949 prevents connected lending (i.e. lending by banks to directors or companies in which Directors are interested). Periodical inspection of banks has been the main instrument of supervision, though recently there has been a move toward supplementary on-site inspections with off-site surveillance. The system of Annual Financial Inspection was introduced in 1992, in place of the earlier system of Annual Financial Review/Financial Inspections. The inspection objectives and procedures, have been redefined to evaluate the banks safety and soundness; to appraise the quality of the Board and management; to ensure compliance with banking laws regulation; to provide an appraisal of soundness of the banks assets; to analyse the financial factors which determine banks solvency and to identify areas where corrective action is needed to strengthen the institution and improve its performance. Inspection based upon the new guidelines have started since 1997. SELF REGULATORY ORGANIZATIONS India has had the distinction of experimenting with Self Regulatory Organisations (SROs) in the financial system since the pre-independence days. At present, there are four SROs in the financial system Indian Banks Association (IBA), Foreign Exchange Dealers Association of India (FEDAI), Primary Dealers Association of India (PDAI) and Fixed Income Money Market Dealers Association of India (FIMMDAI). INDIAN BANKS ASSOCIATION The IBA established in 1946 as a voluntary association of banks, strove towards strengthening the banking industry through consensus and co-ordination. Since nationalisation of banks, PSBs tended to dominate IBA and developed close links with Government and RBI. Often, the reactive and consensus and coordinated approach bordered on cartelisation. To illustrate, IBA had worked out a schedule of benchmark service charges for the services rendered by member banks, which were not mandatory in nature, but were being adopted by all banks. The practice of fixing rates for services of banks was consistent with a regime of administered interest rates but not consistent with the principle of competition. Hence, the IBA was directed by the RBI to desist from working out a schedule of benchmark service charges for the services rendered by member banks. Responding to the imperatives caused by the changing scenario in the reform era, the IBA has, over the years, refocused its vision, redefined its role, and modified its operational modalities. FOREIGN EXCHANGE DEALERS ASSOCIATION OF INDIA (FEDAI) In the area of foreign exchange, FEDAI was established in 1958, and banks were required to abide by terms and conditions prescribed by FEDAI for transacting foreign exchange business. In the light of reforms, FEDAI has refocused its role by giving up fixing of rates, but plays a multifarious role covering training of banks personnel, accounting standards, evolving risk measurement models like the VaR History and Development of Banks in India History and Development of Banks in India INTRODUCTION: The banking industry in India seems to be unaffected from the global financial crises which started from U.S in the last quarter of 2008. Despite the fallout and nationalization of banks across developed economies, banks in India seems to be on the strong fundamental base and seems to be well insulated from the financial turbulence emerging from the western economies. The Indian banking industry is well placed as compare to their banking industries western counterparts which are depending upon government bailout and stimulus packages. The strong economic growth in the past, low defaulter ratio, absence of complex financial products, regular intervention by central bank, proactive adjustment of monetary policy and so called close banking culture has favored the banking industry in India in recent global financial turmoil. Although there will no impact on the Indian banking system similar to that in west but the banks in India will adopt for more of defensive approach in credit disburs al in coming period. In order to safe guard their interest, banks will follow stringent norms for credit disbursal. There will be more focus on analyzing borrower financial health . A nation with 1 billion plus, India is the fastest growing country in terms of population and soon to overtake China as worlds largest populated country. The discerning impact on the over-stretched limited resources explains why India always tends to be deficient in infrastructure and opportunity. The largest economy of the world often frustrated researchers, as there was no single predictable pattern of the market; the multiplicity of government regulations and widespread government ownership had always kept investors away from exploring the vast Indian market. However, with India being liberalised today, banking intermediation has been playing a crucial role in economic development through its credit channel. Foreign banks have entered the soil but that has not yet posed a threat to the vast network of public sector banks that still conduct 92% of banking business in India. Banking in India has undergone a major revamp. It has come a long way since its creation which dates back to the British era. The present banking systems has come into place after many transformations from the Older systems. Against this background the present chapter deals with the evolution of the Indian Banking systems, the various reforms that has been made to make banks more effective, the role of private and foreign sector banks and last the challenges the Indian banks faces in the New Millennium . The banking system is central to a nations economy. Banks are special as they not only accept and deploy large amounts of uncollateralised public funds in a fiduciary capacity, but also leverage such funds through credit creation. In India, prior to nationalisation, banking was restricted mainly to the urban areas and neglected in the rural and semi-urban areas. Large industries and big business houses enjoyed major portion of the credit facilities. Agriculture, small-scale industries and exports did not receive the deserved attention. Therefore, inspired by a larger social purpose, 14 major banks were nationalised in 1969 and six more in 1980. Since then the banking system in India has played a pivotal role in the Indian economy, acting as an instrument of social and economic change. The rationale behind bank nationalisation has been succinctly put forth by eminent bankers: Many bank failures and crises over two centuries, and the damage they did under laissez faire conditions; the needs of planned growth and equitable distribution of credit, which in privately owned banks was concentrated mainly on the controlling industrial houses and influential borrowers; the needs of growing small scale industry and farming regarding finance, equipment and inputs; from all these there emerged an inexorable demand for banking legislation, some government control and a central banking authority, adding up, in the final analysis, to social control and nationalisation (Tandon, 1989). Post nationalisation, the Indian banking system registered tremendous growth in volume. Despite the undeniable and multifold gains of bank nationalization, it may be noted that the important financial institutions were all state owned and were subject to central direction and control. Banks enjoyed little autonomy as both lending and deposit rates were controlled until the end of the 1980s. Although nationalisation of banks helped in the spread of banking to the rural and hitherto uncovered areas, the monopoly granted to the public sector and lack of competition led to overall inefficiency and low productivity. By 1991, the countrys financial system was saddled with an inefficient and financially unsound banking sector. Some of the reasons for this were (i) high reserve requirements, (ii) administered interest rates, (iii) directed credit and (iv) lack of competition (v) political interference and corruption. As recommended by the Narasimham Committee Report (1991) several reform mea sures were introduced which included reduction of reserve requirements, de-regulation of interest rates, introduction of prudential norms, strengthening of bank supervision and improving the competitiveness of the system, particularly by allowing entry of private sector banks. With a view to adopting the Basel Committee (1988) framework on capital adequacy norms, the Reserve Bank introduced a risk-weighted asset ratio system for banks in India as a capital adequacy measure in 1992. Banks were asked to maintain risk-weighted capital adequacy ratio initially at the lower level of 4 per cent, which was gradually increased to 9 per cent. Banks were also directed to identify problem loans on their balance sheets and make provisions for bad loans and bring down the burgeoning problem of non-performing assets. The period 1992-97 laid the foundations for reform in the banking system (Rangarajan, 1998). The second Narasimham Committee Report (1998) focussed on issues like strengthening of th e banking system, upgrading of technology and human resource development. The report laid emphasis on two aspects of banking regulation, viz., capital adequacy and asset classification and resolution of NPA-related problems. Commercial banks in India are expected to start implementing Basel II norms with effect from March 31, 2007. They are expected to adopt the standardised approach for credit risk and the basic indicator approach for operational risk initially. After adequate skills are developed, both at the banks and at the supervisory levels, some banks may be allowed to migrate to the internal rating based (IRB) approach (Reddy 2005). At present, banks in India are venturing into non-traditional areas and generating income through diversified activities other than the core banking activities. Strategic mergers and acquisitions are being explored and implemented. With this, the banking sector is currently on the threshold of an exciting phase. Against this backdrop, this paper endeavours to study the important banking indicators for the last 25-year period from 1981 to 2005. These indicators have been broadly grouped into different categories, viz., (i) number of banks and offices (ii) deposits and credit (iii) investments (iv) capital to risk-weighted assets ratio (CRAR) (v) non performing assets (NPAs) (vi) Income composition (vii) Expenditure composition (viii) return on assets (ROAs) and (ix) some select ratios. Accordingly, the paper discusses these banking indicators in nine sections in the same order as listed above. The paper concludes in section X by drawing important inferences from the trends of these di fferent banking parameters. The number of offices of all scheduled commercial banks almost doubledfrom 29,677 in 1980 to 55,537 in 2005. This rapid increase in the number of bank offices is observed in the case of all the bank groups. However, the number of banks in the case of foreign bank group and domestic private sector bank group decreased from 42 in 2000 to 31 in 2005 and from 33 in 2000 to 29 in 2005, respectively. This fall in the number of banks is reflective of the consolidation process and, in particular, the mergers and acquisitions that are the order of the banking system at present (Table 1). BANKING IN THE OLDER DAYS Banking is believed to be a part of Indian society from as early as Vedic age; transition from mere money lending to banking must have happened before Manu, the great Hindu jurist, who had devoted a large section of his work to deposits and advances and also formulated rules for calculating interest on both 1. During the Mogul period indigenous bankers (rich individuals or families) helped foreign trades and commerce by lending money to the business. It was during the East Indian period when agency houses started managing the banking business. The first Joint Stock bank India saw came in 1786 named the General Bank of India followed by the Bank of Hindustan and the Bengal Bank. Only the Bank of Hindustan continued to be in the show until 1906 while the other two disappeared in the meantime. East India Company established three banks in first half of 19th century: the Bank of Bengal in 1809, the Bank of Bombay in 1840, and the Bank of Madras in 1843. Eventually these three banks (which used to be referred to as Presidency Banks) were made independent units and they really did well for almost a century. In 1920, these three were amalgamated and a new Imperial Bank of India was established in 1921. Reserve Bank of India Act was passed in 1934 and finally in 1935, the Central Bank was created and christened as Reserve Bank of India. Imperial Bank was undertaken as State Bank of India after passing the State Bank of India Act in 1955. During the last phase of freedom fighting (Swadeshi Movement) few banks with purely Indian man agement were established like Punjab National bank (PNB), Bank of India (BoI) Ltd, Canara Bank Ltd, Indian Bank Ltd, the Bank of Baroda Ltd, the Central Bank of India Ltd, etc.July 19, 1969 was an important day in the history of Indian banking industry. Fourteen major banks of the country were nationalised and on April 15, 1980 six more commercial private banks were taken over by the Indian government. In the wake of liberalisation that started in the last decade a few foreign banks entered the foray of commercial banks. To date there are around 40 banks of foreign origin that are  operating in the market, like ABN AMRO Bank, ANZ Grindlays Bank, American Express Bank, HSBC Bank, Barclays Bank and Citibank groups to name a few major of them. HISTORY OF INDIAN BANKS: We can identify three distinct phases in the history of Indian Banking. Early phase from 1786 to 1969 Nationalisation of Banks and up to 1991 prior to banking sector Reforms New phase of Indian Banking with the advent of Financial Banking Sector Reforms after 1991. The first phase is from 1786 to 1969, the early phase up to the nationalisation of the fourteen largest of Indian scheduled banks. It was also the traditional or conservative phase of Indian Banking. The advent of banking system of India started with the establishment of the first joint stock bank, The General Bank of India in the year 1786. After this first bank, Bank of Hindustan and Bengal Bank came to existence. In the mid of 19th century, East India Company established three banks The Bank of Bengal in 1809, The Bank of Bombay in 1840, and bank of Madras in 1843. These banks were independent units and called Presidency banks. These three banks were amalgamated in 1920 and a new bank, Imperial Bank of India was established. All these institutions started as private shareholders banks and the shareholders were mostly Europeans. The Allahabad Bank was established in 1865. The next bank to be set up was the Punjab National Bank Ltd., which was established with its headquarters at La hore in 1894 for the first time exclusively by Indians. Most of the Indian commercial banks, however, owe their origin to the 20th century. Bank of India, Central Bank of India, Bank of Baroda, the Canara Bank, the Indian Bank, and the Bank of Mysore were established between 1906 and 1913. The last major commercial bank to be set up in this phase was the United Commercial Bank in 1943. Earlier the establishment of Reserve Bank of India in 1935 as the central bank of the country was an important step in the development of commercial banking in India. The history of joint stock banking in this first phase was characterised by slow growth and periodic failures. There were as many as one thousand one hundred banks, mostly small banks, failed during the period from 1913 to 1948. The Government of India concerned by the frequent bank failures in the country causing miseries to innumerable small depositors and others enacted The Banking Companies Act, 1949. The title of the Act was changed as Banking Regulation Act 1949, as per amending Act of 1965 (Act No.23 of 1965). The Act is the first regulatory step undertaken by the Government to streamline the functioning and activities of commercial banks in India. Reserve Bank of India as the Central Banking Authority of the country was vested with extensive powers for banking supervision. Salient features of the Act are discussed in a separate page/article At the time of Independence of the country in 1947, the banking sector in India was relatively small and extremely weak. The banks were largely confined to urban areas, extending loans primarily to trading sector dealing with agricultural produce. There were a large number of commercial banks, but banking services were not available at rural and semi-urban areas. Such services were not extended to different sectors of the economy like agriculture, small industries, professionals and self-employed entrepreneurs, artisans, retail traders etc. DRAW BACK OF INDIAN BANKING SYSTEM BEFORE NATIONALISATION Commercial banks, as they were privately owned, on regional or sectarian basis resulted in development of banking on ethnic and provincial basis with parochial outlook. These Institutions did not play their due role in the planned development of the country. Deposit mobilisation was slow. Public had less confidence in the banks on account of frequent bank failures. The savings bank facility provided by the Postal department was viewed a comparatively safer field of investment of savings by the public. Even the deficient savings thus mobilised by commercial banks were not channeled for the development of the economy of the country. Funds were largely given to traders, who hoarded agricultural produce after harvest, creating an artificial scarcity, to make a good fortune in selling them at a later period, when prices were soaring. The Reserve Bank of India had to step in at these occasions to introduce selective credit controls on several commodities to remedy this situation. Such cont rols were imposed on advances against Rice, Paddy, Wheat, Other foodgrains (like jowar, millets, ragi etc.) pulses, oilseeds etc. When the country attained independence Indian Banking was exclusively in the private sector. In addition to the Imperial Bank, there were five big banks each holding public deposits aggregating Rs.100 Crores and more, viz. the Central Bank of India Ltd., the Punjab National Bank Ltd., the Bank of India Ltd., the Bank of Baroda Ltd. and the United Commercial Bank Ltd. Rest of the banks were exclusively regional in character holding deposits of less than fifty Crores. Government first implemented the exercise of nationalisation of a significant part of the Indian Banking system in the year 1955, when Imperial Bank of India was Nationalised in that year for the stated objective of extension of banking facilities on a large scale, more particularly in the rural and semi-urban areas, and for diverse other public purposes to form State Bank of India. SBI was to act as the principal agent of the RBI and handle banking transactions of the Union State Governments throughout India. The step w as in fact in furtherance of the objectives of supporting a powerful rural credit cooperative movement in India and as recommended by the The All-India Rural Credit Survey Committee Report, 1954. State Bank of India was obliged to open an accepted number of branches within five years in unbanked centres. Government subsidised the bank for opening unremunerative branches in non-urban centres. The seven banks now forming subsidiaries of SBI were nationalised in the year 1960. This brought one-third of the banking segment under the direct control of the Government of India. But the major process of nationalisation was carried out on 19th July 1969, when the then Prime Minister of India, Mrs.Indira Gandhi announced the nationalisation of fourteen major commercial banks in the country. One more phase of nationalisation was carried out in the year 1980, when seven more banks were nationalised. This brought 80% of the banking segment in India under Government ownership. The country entered the second phase, i.e. the phase of Nationalised Banking with emphasis on Social Banking in 1969/70. Chronology of Salient steps by the Government after Independence to Regulate Banking Institutions in the Country 1949: Enactment of Banking Regulation Act. 1955 (Phase I): Nationalisation of State Bank of India 1959 (Phase II): Nationalisation of SBI subsidiaries 1961: Insurance cover extended to deposits 1969 (Phase III): Nationalisation of 14 major banks 1971: Creation of credit guarantee corporation 1975: Creation of regional rural banks 1980 (Phase IV): Nationalisation of seven banks with deposits over 200 crores. Shortcomings in the Functioning of Nationalised Banking Institutions However Nationalised banks in their enthusiasm for development banking, looking exclusively to branch opening, deposit accretion and social banking, neglected prudential norms, profitability criteria, risk-management and building adequate capital as a buffer to counter-balance the ever expanding risk-inherent assets held by them. They failed to recognise the emerging non-performing assets and to build adequate provisions to neutralise the adverse effects of such assets. Basking in the sunshine of Government ownership that gave to the public implicit faith and confidence about the sustainability of Government-owned institutions, they failed to collect before hand whatever is needed for the rainy day. And surfeit blindly indulged is sure to bring the sick hour. In the early Nineties after two decades of lop-sided policies, these banks paid heavily for their misdirected performance in place of pragmatic and balanced policies. The RBI/Government of India has to step in at the crisis-hour to implement remedial steps. Reforms in the financial and banking sectors and liberal re capitalisation of the ailing and weakened public sector banks followed. However it is relevant to mention here that the advent of banking sector reforms brought the era of modern banking of global standards in the history of Indian banking. The emphasis shifted to efficient, and prudential banking linked to better customer care and customer service. The old ideology of social banking was not abandoned, but the responsibility for development banking is blended with the paramount need for complying with norms of prudency and efficiency. Composition of Indian Banking System The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions 2. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look into their existing portfolio offering. Conservative banking practices allowed Indian banks to be insulated partially from the Asian currency crisis. Indian banks are now quoting al higher valuation when compared to banks in other Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that have major problems linked to huge Non Performing Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed with efficient branch networks focus primarily on the high revenue niche retail segments. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks (banks owned by the government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. The banking system has three tiers. These are the scheduled commercial banks; the Regional rural banks which operate in rural areas not covered by the scheduled banks; And the cooperative and special purpose rural banks. Under the ambit of the nationalized banks come the specialized banking institutions. These co-operatives, rural banks focus on areas of agriculture, rural development etc., unlike commercial banks these co-operative banks do not lend on the basis of a prime lending rate. They also have various tax sops because of their holding pattern and lending structure and hence have lower overheads. This enables them to give a marginally higher percentage on savings deposits. Many of these cooperative banks diversified into specialized areas (catering to the vast retail audience) like car finance, housing loans, truck finance etc. In order to keep pace with their public sector and private counterparts, the co-operative banks too have invested heavily in information technology to offer high-end computerized banking services to its clients. Given below is the total list of banks operating in India. SCHEDULED AND NON SCHEDULED BANKS There are approximately Eighty scheduled commercial banks, Indian and foreign; almost Two Hundred regional rural banks; more than Three Hundred Fifty central cooperative banks, Twenty land development banks; and a number of primary agricultural credit societies. In terms of business, the public sector banks, namely the State Bank of India and the nationalized banks, dominate the banking sector.India had a fairly well developed commercial banking system in existence at the time of independence in 1947. The Reserve Bank of India (RBI) was established in 1935. While the RBI became a state owned institution from January 1, 1949, the Banking Regulation Act was enacted in 1949 providing a framework for regulation and supervision of commercial banking activity. The first step towards the nationalisation of commercial banks was the result of a report (under the aegis of RBI) by the Committee of Direction of All India Rural Credit Survey (1951) which till today is the locus classicus on the subject. The Committee recommended one strong integrated state partnered commercial banking institution to stimulate banking development in general and rural credit in particular. Thus, the Imperial Bank was taken over by the Government and renamed as the State Bank of India (SBI) on July 1, 1955 with the RBI acquiring overriding substantial holding of shares. A number of erstwhile banks owned by princely states were made subsidiaries of SBI in 1959. Thus, the beginning of the Plan era also saw the emergence of public ownership of one of the most prominent of the commercial banks. The All-India Rural Credit Survey Committee Report, 1954 recommended an integrated approach to cooperative credit and emphasised the need for viable credit cooperative societies by expanding their area of operation, encouraging rural savings and diversifying business. The Committee also recommended for Government participation in the share capital of the cooperatives. The report subsequently paved the way for the present structure and composition of the Cooperative Banks in the country There was a feeling that though the Indian banking system had made considerable progress in the 50s and 60s, it established close links between commercial and industry houses, resulting in cornering of bank credit by these segments to the exclusion of agriculture and small industries. To meet these concerns, in 1967, the Government introduced the concept of social control in the banking industry. The scheme of social control was aimed at bringing some changes in the management and distribution of credit by the commercial banks. The close link between big business houses and big banks was intended to be snapped or at least made ineffective by the reconstitution of the Board of Directors to the effect that 51 per cent of the directors were to have special knowledge or practical experience. Appointment of whole-time Chairman with special knowledge and practical experience of working of commercial banks or financial or economic or business administration was intended to professionalise t he top management. Imposition of restrictions on loans to be granted to the directors concerns was another step towards avoiding undesirable flow of credit to the units in which the directors were interested. The scheme also provided for the take-over of banks under certain circumstances. Political compulsion then partially attributed to inadequacies of the social control, led to the Government of India nationalising, in 1969,fourteen major scheduled commercial banks which had deposits above a cut-off size. The objective was to serve better the needs of development of the economy in conformity with national priorities and objectives. In a somewhat repeat of the same experience, eleven years after nationalisation, the Government announced the nationalisation of seven more scheduled commercial banks above the cut-off size. The second round of nationalisation gave an impression that if a private sector bank grew to the cut-off size it would be under the threat of nationalisation. From the fifties a number of exclusively state-owned development financial institutions (DFIs) were also set up both at the national and state level, with a lone exception of Industrial Credit and Investment Corporation (ICICI) which had a minority private share holding. The mutual fund activity was also a virtual monopoly of Government owned institution, viz., the Unit Trust of India. Refinance institutions in agriculture and industry sectors were also developed, similar in nature to the DFIs. Insurance, both Life and General, also became state monopolies. REFORM MEASURES The major challenge of the reform has been to introduce elements of market incentive as a dominant factor gradually replacing the administratively coordinated planned actions for development. Such a paradigm shift has several dimensions, the corporate governance being one of the important elements. The evolution of corporate governance in banks, particularly, in PSBs, thus reflects changes in monetary policy, regulatory environment, and structural transformations and to some extent, on the character of the self-regulatory organizations functioning in the financial sector. Policy Environment During the reform period, the policy environment enhanced competition and provided greater opportunity for exercise of what may be called genuine corporate element in each bank to replace the elements of coordinated actions of all entities as a joint family to fulfill predetermined Plan priorities. Greater competition has been infused in the banking system by permitting entry of private sector banks (Nine licences since 1993), and liberal licensing of more branches by foreign banks and the entry of new foreign banks. With the development of a multi-institutional structure in the financial sector, emphasis is on efficiency through competition irrespective of ownership. Since non-bank intermediation has increased, banks have had to improve efficiency to ensure survival. REGULATORY ENVIRONMENT Prudential regulation and supervision have formed a critical component of the financial sector reform programme since its inception, and India has endeavored to international prudential norms and practices. These norms have been progressively tightened over the years, particularly against the backdrop of the Asian crisis. Bank exposures to sensitive sectors such as equity and real estate have been curtailed. The Banking Regulation Act 1949 prevents connected lending (i.e. lending by banks to directors or companies in which Directors are interested). Periodical inspection of banks has been the main instrument of supervision, though recently there has been a move toward supplementary on-site inspections with off-site surveillance. The system of Annual Financial Inspection was introduced in 1992, in place of the earlier system of Annual Financial Review/Financial Inspections. The inspection objectives and procedures, have been redefined to evaluate the banks safety and soundness; to appraise the quality of the Board and management; to ensure compliance with banking laws regulation; to provide an appraisal of soundness of the banks assets; to analyse the financial factors which determine banks solvency and to identify areas where corrective action is needed to strengthen the institution and improve its performance. Inspection based upon the new guidelines have started since 1997. SELF REGULATORY ORGANIZATIONS India has had the distinction of experimenting with Self Regulatory Organisations (SROs) in the financial system since the pre-independence days. At present, there are four SROs in the financial system Indian Banks Association (IBA), Foreign Exchange Dealers Association of India (FEDAI), Primary Dealers Association of India (PDAI) and Fixed Income Money Market Dealers Association of India (FIMMDAI). INDIAN BANKS ASSOCIATION The IBA established in 1946 as a voluntary association of banks, strove towards strengthening the banking industry through consensus and co-ordination. Since nationalisation of banks, PSBs tended to dominate IBA and developed close links with Government and RBI. Often, the reactive and consensus and coordinated approach bordered on cartelisation. To illustrate, IBA had worked out a schedule of benchmark service charges for the services rendered by member banks, which were not mandatory in nature, but were being adopted by all banks. The practice of fixing rates for services of banks was consistent with a regime of administered interest rates but not consistent with the principle of competition. Hence, the IBA was directed by the RBI to desist from working out a schedule of benchmark service charges for the services rendered by member banks. Responding to the imperatives caused by the changing scenario in the reform era, the IBA has, over the years, refocused its vision, redefined its role, and modified its operational modalities. FOREIGN EXCHANGE DEALERS ASSOCIATION OF INDIA (FEDAI) In the area of foreign exchange, FEDAI was established in 1958, and banks were required to abide by terms and conditions prescribed by FEDAI for transacting foreign exchange business. In the light of reforms, FEDAI has refocused its role by giving up fixing of rates, but plays a multifarious role covering training of banks personnel, accounting standards, evolving risk measurement models like the VaR