A study on the growth in the banking sector “with special reference to Tamil Nadu”

Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India and the Bank of Hindustan, both of which are defunct. The Reserve Bank of India, India Central banking authority, was nationalized on January 1^st, 1949, under the terms of Reserve Bank of India Act 1948. In 1949, the Banking Regulation Act was enacted which empowered the RBI “to regulate, control, and inspect the banks in India”. India's banking sector is constantly growing. Since the turn of the century, there has been a noticeable upsurge in transactions through ATMs, and also internet and mobile banking. The study conducted is an attempt to analyze the overall performance of the banks in the state of Tamil Nadu, the average annual growth of banks in Tamil Nadu and to identify the trend of banking penetration in Tamil Nadu. The tools used in the study include ratios, Trend Analysis and CAGR.