Impact of information technology on efficiency banking industry

INTRODUCTION

1.1 Historical Perspective of Indian Banking

The banking business is not new in India. In the 16th century

onwards traditional banking was in the hands of private money

lenders, indigenous bankers, etc. but the modern banking system was

introduced by the East India Company.

The first bank in India, called The General Bank of India was

established in the year 1786. The East India Company established The

Bank of Bengal/Calcutta (1809), Bank of Bombay (1840), and Bank of

Madras (1843). The next bank was the Bank of Hindustan which was

established in 1870. These three individual units (Bank of Calcutta,

Bank of Bombay, and Bank of Madras) were called Presidency

Banks. Allahabad Bank which was established in 1865 was for the

first time completely run by Indians. Punjab National Bank Ltd. was

set up in 1894 with headquarters at Lahore.