In this article we will discuss about the management of a banking company in India. A banking company must have a whole-time chairman appointed for five years at a time. He may become a director of a subsidiary of the banking company or of a guarantee company registered under Section 25 of the Companies Act but cannot take up any [...]
Section 11 lays down the following minimum limit of paid up capital and reserves: (a) Banking Companies Incorporated Outside India: If it has a place of business in Mumbai or Kolkata or both ............... Rs. 20 lakhs If it does not have a place of business in Mumbai or Kolkata ............... Rs. 15 lakhs Further, every year 20% of the [...]
The most important asset for banks is “loans and advances” comprising cash credits and overdrafts, bills discounted and purchased and term loans. The banks have to classify their advances as follows in order to arrive at the amount of the provision to be made against them, into the following groups:- 1. Standard Assets 2. Sub-Standard Assets 3. Doubtful Assets and [...]