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BANKING TRADE AND COMMERCE
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JOINT STOCK BANKS
Till the beginning of the present century there was not a single banking organisation in the Satara district. The first bank to be established at Satara was the Satara Swadeshi Commercial Bank, Ltd. It was established on the 20th August, 1907. Since that date there was a gradual development of banking organisations in the district. At present (i.e., by the end of 1958) there are fourteen joint-stock banks in this district. Out of them eight are the branch-offices of the banks which have got their registered offices outside the district. The names of all the banks in the district, their location and the years of their establishment are given below: — |
Name of the Bank. |
Location. |
Year of Establishment. | |
The State Bank of India |
Satara |
1956 |
The State Bank of India |
Phaltan |
-- | |
The State Bank of India |
Karad |
-- | |
The United Western Bank of India, Ltd. |
Satara |
1936 | |
The United Western Bank of India, Ltd. |
Lonand |
1954 | |
The United Western Bank of India, Ltd. |
Phaltan |
1958 | |
The Bank of Karad |
Karad |
1946 | |
The Bank of Karad |
Satara |
1951 | |
The Phaltan Bank, Ltd. |
Phaltan |
1918 | |
The Satara Swadeshi Commercial Bank, Ltd. |
Satara |
1907 | |
The Bank of Aundh, Ltd. |
Aundh |
1938 | |
The Bank of Aundh, Ltd. |
Ogalewadi |
-- | |
The Sangli Bank, Ltd. |
Karad |
-- | |
The New Citizen Bank of India |
Lonand |
-- |
All these banks including the State Bank of India provide the usual banking facilities to the public including the financing of trade and agriculture and storage and movement of agricultural produce. Besides these banks, there are several urban co-operative banks which operate in the district. But the facilities afforded by them are limited. The Satara District Central Co-operative Bank which was established in 1951, confines its activities to the co-operative field.
The main object of many of the joint-stock banks such as the Bank of Aundh or the Bank of Phaltan is to encourage the habit of banking especially in rural area and to cater to the needs of the public through its offices. The branches of the banks, are situated in the rural parts of the district that are financially very poor.
Stale Bank of India.
The State Bank of India was established quite recently in this district. At present it has three branches at the important towns viz. Satara, Karad and Phaltan. The State Bank undertakes the usual banking business. But as an agent to the Reserve Bank of India it also conducts Government business and affords remittance and exchange facilities to local banks and the public.
Other Banks.
The following tables reveal the financial operations of various joint-stock banks in the Satara district.
TABLE No. 9.
OWNERSHIP OF DEPOSITS FOR THE YEAR 1957. |
Deposits of |
Rs. 50,000 and above. |
Between Rs. 10,000 and Rs. 50,000. | |
No. of Accounts. |
Amount. | |
No. of Accounts. |
Amount. | |
|
A. Fixed Deposits. |
|
|
|
| |
1. |
Business |
-- |
-- |
11 |
2,06,100 | |
2. |
Personal |
-- |
-- |
57 |
8,71,900 | |
3. |
Public Institutions and Trusts |
1 |
55,000 |
1 |
37,000 | |
4. |
Others |
-- |
-- |
4 |
69,000 | |
Total |
1 |
55,000 |
73 |
11,84,000 | |
|
B. Current Account Deposits. |
|
|
|
| |
1. |
Manufacturing Concerns |
2 |
3.74,000 |
-- |
-- | |
2. |
Trading Concerns |
-- |
-- |
7 |
83,900 | |
3. |
Personal |
-- |
-- |
6 |
87,396 | |
4. |
Banking Companies |
-- |
-- |
8 |
1,74,300 | |
5. |
Others |
3 |
1,95,000 |
11 |
2,62,428 | |
Total |
5 |
5,69,000 |
32 |
6,08,024 | |
|
C. Savings Account Deposits. |
|
|
|
| |
1. |
Business |
-- |
-- |
2 |
20,313 |
|
2. |
Personal |
-- |
-- |
18 |
2,79,474 |
|
3. |
Banking Companies |
-- |
-- |
-- |
-- | |
4. |
Others |
-- |
-- |
3 |
61,700 |
|
Total |
-- |
|
23 |
3,61,487 |
TABLE No. 9-contd.
|
Deposits of |
Between Rs. 5,000 and Rs. 10.000. |
Between Rs. 1,000 and Rs. 5,000. | |
No. of Accounts. |
Amount. |
No. of Accounts. |
Amount. | |
|
A. Fixed Deposits. |
|
|
|
| |
1. |
Business |
2 |
17,300 |
6 |
11,800 | |
2. |
Personal |
184 |
10,44,200 |
522 |
8,93,901 | |
3. |
Public Institutions and Trusts |
1 |
5,501 |
2 |
4,000 | |
4. |
Others |
1 |
8,000 |
8 |
20,500 | |
Total |
188 |
10,75,001 |
538 |
9,30,201 | |
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B. Current Account Deposits. |
|
|
|
| |
1. |
Manufacturing Concerns |
-- |
8,800 |
14 |
25,400 | |
2. |
Trading Concerns |
10 |
50,700 |
17 |
24,800 | |
3. |
Personal |
9 |
60,874 |
105 |
1,70,207 | |
4. |
Banking Companies |
3 |
20,300 |
2 |
2,700 | |
5. |
Others |
6 |
52,600 |
19 |
42,365 | |
Total |
29 |
1,93,274 |
157 |
2,65,472 | |
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C. Savings Account Deposits. |
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|
|
| |
1. |
Business |
9 |
54,700 |
12 |
36,200 |
|
2. |
Personal |
86 |
5,88,948 |
503 |
7,15,693 | |
3. |
Banking Companies |
-- |
-- |
-- |
-- | |
4. |
Others |
-- |
-- |
42 |
99,272 |
|
Total |
95 |
6,43,648 |
557 |
8,51,165 |
TABLE No. 9-contd. |
Deposits of |
Rs. 50,000 and above- |
Between Rs. 10,000 and Rs. 50,000. |
|
No. of Accounts. |
Amount. |
No. of Accounts |
Amount. |
|
|
D. Other Deposits. |
|
|
|
| |
1. |
Manufacturing Concerns |
-- |
-- |
-- |
-- |
|
2. |
Trading Concerns |
-- |
-- |
-- |
-- |
|
3. |
Personal |
-- |
-- |
-- |
-- |
|
4. |
Banking Companies |
-- |
-- |
-- |
-- |
|
5. |
Others |
1 |
3,80,000 |
-- |
-- | |
Total |
1 |
3,80,000 |
-- |
-- |
|
|
Total Deposits. |
-- |
-- |
-- |
-- |
|
1. |
Manufacturing Concerns |
2 |
3,74,000 |
-- |
-- |
|
2. |
Trading Concerns |
-- |
-- |
7 |
83,900 |
|
3. |
Personal |
-- |
-- |
81 |
12,38,770 |
|
4. |
Banking Companies |
-- |
-- |
8 |
1,74,300 |
|
5. |
Business |
-- |
-- |
13 |
2,26,413 |
|
6. |
Public Institutions and Trusts |
4 |
55,000 |
1 |
37,000 |
|
7. |
Others |
7 |
5,75,000 |
18 |
3,93,128 |
|
Total |
7 |
10.04,000 |
128 |
21,53,511 |
TABLE No. 9-contd.
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Deposits of |
Between Rs. 5,000 and Rs. 10,000. |
Between Rs. 1,000 and Rs. 5,000. | |
No. of Accounts. |
Amount. |
No. of Accounts. |
Amount. | |
|
D. Other Deposits. |
|
|
|
| |
1. |
Manufacturing Concerns |
-- |
-- |
-- |
-- | |
2. |
Trading Concerns |
-- |
-- |
-- |
-- | |
3. |
Personal |
-- |
-- |
-- |
-- | |
4. |
Banking Companies |
-- |
-- |
-- |
-- | |
5. |
Others |
-- |
-- |
-- |
-- | |
Total |
-- |
-- |
-- |
-- | |
|
Total Deposits. |
-- |
-- |
-- |
-- | |
1. |
Manufacturing Concerns |
1 |
8,800 |
14 |
25,400 | |
2. |
Trading Concerns |
10 |
50,700 |
17 |
24,800 | |
3. |
Personal |
279 |
16,94,022 |
1,130 |
17,79,801 | |
4. |
Banking Companies |
3 |
20,300 |
2 |
2,700 | |
5. |
Business |
11 |
72,000 |
18 |
48,000 | |
6. |
Public Institutions and Trusts |
1 |
5,501 |
2 |
4,000 | |
7. |
Others |
7 |
60,600 |
69 |
1,62,137 |
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Total |
312 |
19,11,923 |
1,252 |
20,46,838 |
TABLE No. 9-contd. |
Deposits of |
Between Rs. 500 and Rs. 1,000 |
Rs. 500 and below. |
Total. |
|
No. of Accounts |
Amount |
No. of Accounts. |
Amount |
No. of Accounts. |
Amount. |
|
A. Fixed Deposits. |
|
|
|
|
|
|
1. |
Business |
-- |
-- |
24 |
3,500 |
43 |
2,38,700 |
2. |
Personal |
162 |
1,00,100 |
198 |
43,030 |
1,123 |
29,53,131 |
3. |
Public Institutions and Trusts |
1 |
1,000 |
2 |
400 |
8 |
1,02,901 |
4. |
Others |
-- |
-- |
38 |
2,700 |
51 |
1,00,200 |
|
Total |
163 |
1,01,100 |
262 |
49,630 |
1,225 |
33,94,932 |
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B. Current Account Deposits. |
|
|
|
|
|
|
1. |
Manufacturing Concerns |
2 |
1,600 |
10 |
4,200 |
29 |
4,14,000 |
2. |
Trading concerns |
1 |
700 |
128 |
14,175 |
35 |
1,74,275 |
3. |
Personal |
59 |
51,706 |
1,497 |
79,218 |
1,676 |
4,49,401 |
4. |
Banking Companies |
-- |
-- |
-- |
-- |
13 |
1,97,300 |
5. |
Others |
2 |
1,500 |
33 |
2,469 |
74 |
5,56,362 |
|
Total |
64 |
55,506 |
1,668 |
1,00,062 |
1,827 |
17,91,338 |
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C. Savings Account Deposits. |
|
|
|
|
|
|
1 |
Business |
54 |
29,200 |
549 |
33,322 |
626 |
1,73,735 |
|
2 |
Personal |
223 |
1,84,088 |
5,068 |
3,62,350 |
5,898 |
21,30,553 |
3. |
Banking Companies |
-- |
-- |
-- |
-- |
-- |
-- |
4. |
Others |
-- |
2,511 |
120 |
20,481 |
168 |
1,83,964 |
|
Total |
280 |
2,15,799 |
5,737 |
4,16,153 |
6,692 |
24,88,252 |
TABLE No. 9—contd. |
Deposits of |
Between Rs. 500 and Rs. 1.000 |
Rs. 500 and below. |
Total. | |
No, of Accounts. |
Amount. |
No. of Accounts. |
Amount. |
No. of Accounts. |
Amount. | |
|
D. Other Deposits. |
|
|
|
|
|
| |
1. |
Manufacturing Concerns |
-- |
-- |
-- |
-- |
-- |
-- | |
2. |
Trading Concerns |
-- |
-- |
-- |
-- |
-- |
-- | |
3. |
Personal |
-- |
-- |
-- |
-- |
-- |
-- | |
4. |
Banking Companies |
-- |
-- |
-- |
-- |
-- |
-- | |
5. |
Others |
-- |
-- |
-- |
-- |
1 |
3,80,000 | |
Total |
-- |
-- |
-- |
-- |
1 |
3,80,000 | |
|
Total Deposits. |
|
|
|
|
|
| |
1. |
Manufacturing Concerns |
2 |
1,600 |
10 |
4,200 |
29 |
4,14,000 | |
2. |
Trading Concerns |
1 |
700 |
128 |
14,175 |
163 |
1,74,275 | |
3. |
Personal |
444 |
3,35,894 |
6,763 |
4,84,598 |
8,697 |
55,33,085 | |
4. |
Banking Companies |
-- |
-- |
-- |
-- |
13 |
1,97,300 | |
5. |
Business |
54 |
29,200 |
573 |
36,822 |
669 |
4,12,435 | |
6. |
Public Institutions and Trusts |
1 |
1,000 |
2 |
400 |
8 |
1,02.901 | |
7. |
Others |
5 |
4,011 |
191 |
25,650 |
294 |
12,20,526 |
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Total
|
507 |
3,72,405 |
7,667 |
5,65,845 |
9,873 |
80,54,522 |
TABLE No. 10.
ANALYSIS OF ADVANCES OF SCHEDULED AND NON-SCHEDULED BANKS ACCORDING TO PURPOSE. |
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Year ended 1955. |
Year ended 1957. | |
Number of Accounts. |
Amount Rs. |
percentage to total advances. |
Number of Accounts. |
Amount Rs. |
Percentage to total advances. | |
I. |
Industry |
35 |
11,06,400 |
34.97 |
36 |
13,04,000 |
36.44 | |
II. |
Commerce |
323 |
12,21,570 |
38.61 |
293 |
12,22,527 |
34.16 | |
III. |
Agriculture- |
10 |
19,558 |
0.61 |
8 |
20,298 |
0.56 | |
IV. |
Personal and Professional |
1,262 |
6,27,144 |
19.82 |
1,567 |
7,73,040 |
21.60 | |
V. |
All others |
459 |
1,89,517 |
5.99 |
845 |
2,59,049 |
7.24 |
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Total |
2,089 |
31,64,189 |
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2,749 |
35,78,914 |
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TABLE No. 11.
ANALYSIS OF ADVANCES OF SCHEDULED AND NON-SCHEDULED BANKS ACCORDING TO SECURITY. |
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Year ended 1955. |
Year ended 1957. | |
Number of Accounts. |
Amount Rs. |
Percentage to total advances. |
Number of Accounts. |
Amount Rs. |
Percentage to total advances. | |
1. Secured Advances— | | | | | | | |
(1) Government and Trustee securities |
13 |
1,000 |
0.30 |
9 |
5,000 |
0.14 | |
(2) Shares and debentures of Joint-Stock Companies etc. |
32 |
44,300 |
1.40 |
29 |
64,000 |
1.79 | |
(3) Gold and Silver Bullion, Gold and Silver ornaments. |
1,416 |
5,06,573 |
16.00 |
2,067 |
7,52,784 |
21.03 | |
(4) Merchandise: | | | | | | | |
(a) Agricultural Commodities |
27 |
6,93,999 |
21.90 |
63 |
8,00,794 |
22.38 | |
(b) Non-agricultural Commodities |
38 |
5,95,870 |
18.80 |
37 |
4,54,800 |
12.70 | |
(5) Real Estate: | | | | | | | |
(a) Agricultural Land |
34 |
40,558 |
1.20 |
11 |
27,298 |
0.76 | |
(b) Other properties |
22 |
2,34,632 |
7.40 |
30 |
2,54,018 |
7.09 | |
(6) Fixed Deposits |
92 |
1,18,102 |
3.70 |
105 |
1,34,419 |
3.76 | |
(7) Other secured advances |
18 |
76,338 |
2.40 |
22 |
1,23,552 |
3.46 | |
Total |
1,672 |
23,11,372 |
|
2,373 |
26,16,665 |
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II. Unsecured Advances |
417 |
8,52,917 |
26.90 |
386 |
9,62,249 |
26.89 | |
Total of I and II |
2,089 |
31,64,289 |
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2,759 |
35,78,914 |
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The foregoing tables reveal some of the broad trends in the financial operations of banks in Satara district. Firstly, the banking habits of the people do not appear to be well developed. The total deposits held by these banks stood only at Rs. 80,54,522 by the end of 1957 and they consisted of fixed deposits, current deposits and savings deposits and were held by individuals, banking companies and business concerns. Of these deposits, fixed deposits amounted to Rs. 33,94,932, while only Rs. 3,80,000 were deposited in deposits classified as " Other Deposits ". Amounts involved in Current Deposits and Savings Deposits were Rs. 17,91,338 and Rs. 24,88,252 respectively. Secondly, the manufacturing and trading concerns were the largest single depositors followed closely by the banking companies.
Tables 10 and 11 give us an analysis of the advances made by the scheduled and non-scheduled banks according to purpose and security. Table No. 10 shows that by the end of 1958 these banks in all advanced Rs. 31,64,189 against 2,089 accounts. Most of the advances were for commercial and industrial purposes, while comparatively smaller amounts were advanced for personal and professional reasons. Agricultural sector received the smallest assistance from the banks. There are presumably two reasons for this. Firstly, most of the banks are located in the urban areas and are not quite willing to advance loans to people coming from rural areas. Secondly, agencies other than banking such as the co-operative societies and the Government are helping the agriculturists.
The securities against which loans are advanced are given in table No. 11. It shows that out of the total number of accounts, 417 accounts were unsecured. Among the secured advances, large sums were advanced against the securities of gold and silver bullion and gold and silver ornaments. As against this, very small amounts were advanced against the securities of real estate, especially the land. Small amounts were also advanced against Government and Trustee securities. It will be clear from table No. 10 that the total amount advanced by the banks has increased only a little. Industrial units and personal and professional concerns were benefited by this, as they received larger amounts.
The same table reveals further that the number of accounts as well as the sums advanced against them by the end of 1957 have fairly increased over those in 1955. In 1957, considerably larger loans were given against gold and silver bullion or ornaments as securities. On the contrary, the number of accounts and loans advanced against Government and Trustee securities have dropped down. There is also a tendency among the banks to meet the needs of those who cannot provide security or adequate security.
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