Done very easily because they use one brand name

done very easily because they use one brand name (ICICI) for all their financial products and services.
One-stop Shopping
Universal banking offers all financial products and services under one roof. One-stop shopping saves a lot of
time and transaction costs. It also increases the speed or flow of work. So, one-stop shopping gives benefits to
both banks and their clients.

DISADVANTAGES OF UNIVERSAL
BANKING
Different Rules and Regulations
Effect of failure on Banking System
Monopoly
Conflict of Interest

DISADVANTAGES OF UNIVERSAL
BANKING
Different Rules and Regulations :
Universal banking offers all financial products and services under one roof. However, all these products and
services have to follow different rules and regulations. This creates many problems. For e.g. Mutual Funds,
Insurance, Home Loans, etc. have to follow different sets of rules and regulations, but they are provided by the
same bank.
Effect of failure on Banking System:
Universal banking is done by very large banks. If these huge banks fail, then it will have a very big and bad effect
on the banking system and the confidence of the public. For e.g. When Lehman Brothers a very large universal
bank failed. It had very bad effects in the USA, Europe and even in India.
Monopoly :
Universal banks are very large. So, they can easily get monopoly power in the market. This will have many harmful
effects on the other banks and the public. This is also harmful to economic development of the country.
Conflict of Interest :
Combining commercial and investment banking can result in conflict of interest. That is, Commercial banking
versus Investment banking. Some banks may give more importance to one type of banking and give less
importance to the other type of banking. However, this does not make commercial sense.

NON PERFORMING ASSETS
• An asset of a bank (such as a loan given by the
bank) turns into a non-performing asset (NPA)
• when it ceases to generate regular income
such as interest etc for the bank.
• In other words, when a bank which lends a
loan does not get back its principal and
interest on time,
• the loan is said to have turned into an NPA

NON PERFORMING ASSETS
• Banks have to classify their assets as performing and non-
performing in accordance with RBI's guidelines.
• Under these guidelines, an asset is classified as non-
performing if any amount of interest or principal
installments remains overdue for more than 90 days, in
respect of term loans.
• In respect of overdraft or cash credit, an asset is classified
as non-performing if the account remains out of order for a
period of 90 days
• and in respect of bills purchased and discounted
account, if the bill remains overdue for a period of
more than 90 days.

CLASSIFICATION OF ASSETS
• Standard assets :
• Standard assets service their interest and principal
installments on time although they occasionally default up
to a period of 90 days
• Standard assets are also called performing assets
• They yield regular interest to the banks and return the due
principal on time and thereby help the banks earn profit
and recycle the repaid part of the loans for further lending.