College Sadhana – Journal for Bloomers of Research
COLLEGE SADHANA – Journal for Bloomers of Research,
Vol. 2,
No. 2,
FEBRUARY 2010
Recent Trends in Indian Financial Services Industry
R.Neelamegam
Emeritus Professor- AICTE, Department of Management Studies, V.H.N.S.N. College, Virudhunagar
Abstract - 'Finance is the life blood of business ' and 'Finance is the wheel of industry ' - go the rhetoric emphasizing the key role of finance. In fact, finance pervades into other areas of business like production and marketing - to keep the business going: such is the importance of finance. Amid this backdrop, the present paper brings to focus recent trends in financial services sector in India.
1. INTRODUCTION In India, the onset of globalization in July1991, changed the financial scenes in the realms of banking, insurance and Mutual fund. 1.1 Commercial banks A landmark was registered in the Indian banking sector when the major banks were nationalized in 1969.Though nationalization was enforced as a flashy political gimmickry by the then government at the centre, its real gain was reaped by the citizens of India only in 2009-when the banks of developed nations tumbled down, the Indian banks stood strong- there was no public panic at all at the time of global financial crisis which shook the world during 2008-2009. 1.2 Banks ' technology driven services Marketing is an essential economic factor not only for production but also for research and development. Peter Drucker has aptly remarked a business firm has really two functions only, namely, marketing and innovation. It is very relevant for banking industry, which in India has undergone sea changes, thanks to the advent of technology, competition brought through foreign banks, emergence of new private banks and changes in regulations. With more and more players expected in the field, banks have to adapt to the new trend. Concerted efforts have been made by banks to improve customer service. The most important
196
ones relate to the advent of
Vol. 2,
No. 2,
FEBRUARY 2010
Recent Trends in Indian Financial Services Industry
R.Neelamegam
Emeritus Professor- AICTE, Department of Management Studies, V.H.N.S.N. College, Virudhunagar
Abstract - 'Finance is the life blood of business ' and 'Finance is the wheel of industry ' - go the rhetoric emphasizing the key role of finance. In fact, finance pervades into other areas of business like production and marketing - to keep the business going: such is the importance of finance. Amid this backdrop, the present paper brings to focus recent trends in financial services sector in India.
1. INTRODUCTION In India, the onset of globalization in July1991, changed the financial scenes in the realms of banking, insurance and Mutual fund. 1.1 Commercial banks A landmark was registered in the Indian banking sector when the major banks were nationalized in 1969.Though nationalization was enforced as a flashy political gimmickry by the then government at the centre, its real gain was reaped by the citizens of India only in 2009-when the banks of developed nations tumbled down, the Indian banks stood strong- there was no public panic at all at the time of global financial crisis which shook the world during 2008-2009. 1.2 Banks ' technology driven services Marketing is an essential economic factor not only for production but also for research and development. Peter Drucker has aptly remarked a business firm has really two functions only, namely, marketing and innovation. It is very relevant for banking industry, which in India has undergone sea changes, thanks to the advent of technology, competition brought through foreign banks, emergence of new private banks and changes in regulations. With more and more players expected in the field, banks have to adapt to the new trend. Concerted efforts have been made by banks to improve customer service. The most important
196
ones relate to the advent of
References: [1] [2] [3] [4] SEBI Annual report upto 2007- 2008 The Hindu, August 30, 2009, P.12 The Hindu, September 1, 2009, P.16 The Hindu, September 4, 2009, P.1 198