commercial banking sector in india
COMMERCIAL BANKING SECTOR
SUMMARY:
Banking industry is the blood vascular system of our economy. The banks have played substantial role in the growth of Indian economy. From the meagre start in 1860 the banks have come to long way. The total shape of banking system was changed in 1991 due to the introduction of financial sector reforms as part of the liberalisation process. These reforms were aimed at enhancing the viability and efficiency of our banking system. Although there is a sustainable increase in deposits of SCB (Schedule Commercial Banks) at an annual average rate of 20.86% during FY09-FY13 there are lot of challenges faced by commercial banks. The challenges are capital adequacy, quality of assets, entry of new banks, regulations and soon.
INTRODUCTION:
Banking industry is the blood vascular system of our economy. It has a positive role to play in the economic development of the country as repositories of people’s savings and purveyors of credit, especially as the success of economic development depends on the mobilisation of resources and their investment in an appropriate manner. Till 1991, the banking industry as a whole had given emphasis on deposit mobilisation, credit deployment and branch expansion. The rapid growth of banks, especially since nationalisation of major commercial banks in 1969, brought in both quantitative and qualitative changes in their functioning and also approach towards socio-economic development of the country.
In the light of liberalization, privatization and globalization a lot of challenges were faced by the commercial banks. After the nationalization and till the early 1990s, the main thrust of banking operations was on social banking and accordingly the emphasis was placed on enhancing the branch network in rural and semi-urban areas.
From the 1990s onwards, the Indian economy has really evolved and the banking sector has evolved as well and lot of investments taking place with new sectors emerging like the
SUMMARY:
Banking industry is the blood vascular system of our economy. The banks have played substantial role in the growth of Indian economy. From the meagre start in 1860 the banks have come to long way. The total shape of banking system was changed in 1991 due to the introduction of financial sector reforms as part of the liberalisation process. These reforms were aimed at enhancing the viability and efficiency of our banking system. Although there is a sustainable increase in deposits of SCB (Schedule Commercial Banks) at an annual average rate of 20.86% during FY09-FY13 there are lot of challenges faced by commercial banks. The challenges are capital adequacy, quality of assets, entry of new banks, regulations and soon.
INTRODUCTION:
Banking industry is the blood vascular system of our economy. It has a positive role to play in the economic development of the country as repositories of people’s savings and purveyors of credit, especially as the success of economic development depends on the mobilisation of resources and their investment in an appropriate manner. Till 1991, the banking industry as a whole had given emphasis on deposit mobilisation, credit deployment and branch expansion. The rapid growth of banks, especially since nationalisation of major commercial banks in 1969, brought in both quantitative and qualitative changes in their functioning and also approach towards socio-economic development of the country.
In the light of liberalization, privatization and globalization a lot of challenges were faced by the commercial banks. After the nationalization and till the early 1990s, the main thrust of banking operations was on social banking and accordingly the emphasis was placed on enhancing the branch network in rural and semi-urban areas.
From the 1990s onwards, the Indian economy has really evolved and the banking sector has evolved as well and lot of investments taking place with new sectors emerging like the
References: 1. Dr. Anurag. B. Singh, MS. Priyanka Tandon (2012), “A study of financial performance: a comparative analysis of SBI and ICICI bank”, November http://indianresearchjournals.com/pdf/IJMFSMR/2012/November/5.pdf 2. Dr. M. Syed Ibrahim (2011), “Operational Performance of Indian Scheduled Commercial Banks-An Analysis” , May. http://www.euroasiapub.org/IJRFM/mar2013/3.pdf 4. Satyananda Sahoo, RBI (2013), “Financial Structures and Economic Development in India: An Empirical Evaluation”. http://rbidocs.rbi.org.in/rdocs/Publications/PDFs/2WPSN140313.pdf 5. RBI (2012), “Report on trend and progress of banking in India 2011-12”, June 30.