Evolution and Growth of Commercial Banking in India: A Study of the Post-Independence Era

Authors: NEETU SHARMA

Country: India

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Abstract: The beginning of banking system in India was marked by the opening of English agency houses which did business in the 18th and 19th centuries. Then, commercial banks were established with unlimited liability. The Bank of Hindustan was established in 1770 by Agency House of Alexander and Company. Bengal Bank was set up in 1785. It shut shop in 1791 after it suffered severely from the temporary reverses imposed by Tipu Sultan upon the Company. The need for an organized banking system in the beginning of the 19th century gave birth to Bank of Calcutta in 1806. The East India Company issued Charter in 1809 converting this bank into the State Aided Presidency Bank and renamed it as Bank of Bengal. Banks were founded under similar Charter in Bombay as Bank of Bombay, 1840 and in Madras as Bank of Madras, 1843. These presidency banks carried on the functions of commercial bank along with the fulfilment of the requirements of the British Government at that time. They were established under the full control of foreign shareholders having full support of the government and it may be said that they were more responsive to the interest of the government and the foreign shareholders and had little concern with the requirement of national economy.

Keywords: shareholders, commercial, Consequently.

Paper Id: 232751

Published On: 2024-01-24

Published In: Volume 12, Issue 1, January-February 2024

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