A banking institution is indispensable in a modern society. It plays a pivotal role in economic development of a country. According to definition of banking as given in the Banking Regulation Act, 1949, the essence of banking lies in the performance of twin functions of the acceptance of deposits from the public and employing the funds thus mobilised in lending or investing in securities. Banking Companies are however permitted to undertake a number of other functions and render a variety of services also to their customers and the public in general. Banking in India has undergone a tremendous transformation during the past few years. It is considered to be of strategic importance for guaranteeing the success of our planning targets and priorities. It is an effective agency for economic transformation of modern societies. In the past banking institution were subsidiary organizations of big industrial houses or profit oriented vested interests. These banks were designed to mobilise social resources for personal and group gains. There was an atmosphere of anarchy and failure of banks in those days.