Contribution of Indian Financial Institution Towards Economy
Contribution of Indian Financial Institution towards Economy
Abstract:
Banks over the year play an significant role in development of Indian economy. After liberalization, the financial depression, the position of banks have become all the more important in the course of working of the money market and hence the economy of a nation.. The economic reforms totally have changed the banking sector. RBI permitted new banks to be started in the private sector as per the recommendation of Narasimham committee. The Indian banking industry was dominated by public sector banks. But now the situations have changed. New generation banks with used of technology and professional management has gained a reasonable position in the banking industry. In this paper we look at the type of banks , their role and functioning and contribution towards economy .
We perform a comparative data analysis between GDP and total advances & deposits .
We also check whether the Credit Deposit Ratio has any relationship with the GDP . We then perform a regression analysis to check whether there is any relationship between GDP and Bank lending interest rates. We also compare the Flow of credit to Agricultural Sector with the Growth of Agriculture Sector. We conclude the analysis by an overview and analysis of the sectorial deployment of gross bank credit over the last two financial years.
Introduction of Banking The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions.The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through
Abstract:
Banks over the year play an significant role in development of Indian economy. After liberalization, the financial depression, the position of banks have become all the more important in the course of working of the money market and hence the economy of a nation.. The economic reforms totally have changed the banking sector. RBI permitted new banks to be started in the private sector as per the recommendation of Narasimham committee. The Indian banking industry was dominated by public sector banks. But now the situations have changed. New generation banks with used of technology and professional management has gained a reasonable position in the banking industry. In this paper we look at the type of banks , their role and functioning and contribution towards economy .
We perform a comparative data analysis between GDP and total advances & deposits .
We also check whether the Credit Deposit Ratio has any relationship with the GDP . We then perform a regression analysis to check whether there is any relationship between GDP and Bank lending interest rates. We also compare the Flow of credit to Agricultural Sector with the Growth of Agriculture Sector. We conclude the analysis by an overview and analysis of the sectorial deployment of gross bank credit over the last two financial years.
Introduction of Banking The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions.The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through