Click here to return to the main window.
Trends in banking
    • India adopted a socialistic model of development with centralized plans for implementing the objectives of balanced growth. For this purpose, banks were nationalised to ensure that the flow of credit followed the pattern required for economic growth.
    • Nationalisation of banks led to the expansion of the banking network in the country with the banks recording a multifold growth in the mobilization and deployment of finance. However, with the growth of the network, there also arose concerns over the efficacy of such directed credit and the cost of operations in conducting banking in the public sector.
    • In line with the liberalization of the Indian economy in the 1990s, the financial sector was also liberalized in order to allow greater competition leading to efficiency in the banking system. This has led to developments such as:

      • - the entry of new private sector banks
      - greater leeway to foreign banks in operating in the country and
      - gradual sale of government equity in PSU Banks (without ceding government control)
Apart from the increasing competition, the banking sector in the country is currently in the throes of change being impacted by events such as economic recession leading to rising NPAs and problems of achieving capital adequacy. This has made banks extremely cautious about lending to industry (especially to the small and medium enterprises) restricting the growth of a number of these enterprises.
 

Introduction to banking
Leading commercial banks in India
Know more about bank financing to Industry

We would look forward to receiving your feedback and suggestions on this module at services@indiamarkets.com  

Disclaimer: IMO Communications Pvt. Ltd has taken due care and caution in taking information from reliable sources while designing this module and believes the information contained in this module to be reliable. However it shall not warrant its completeness or accuracy. The said information should not be treated as professional advice and the users are requested to seek professional advice for taking financial decisions. IMO Communications Pvt. Limited shall not be liable for any losses or damages on account of the usage of the said information.
Citibank Disclaimer: The content on this page has been created by indiamarkets.com. Citibank does not guarantee the authenticity of the content and cannot be held responsible for the same.