The main theme of the book is to present a systematic analysis of the impact of Banking Sector Reforms in the areas of efficiency and profitability of commercial banks, both in public and private sector over a period of 11 years since the initiation of reforms measures in 1992-93. It starts with a historical review of the development of Indian Commercial Banking in the pre-reform period and the circumstances and conditions necessitated initiation of reforms. It also reviews the main recommendations of the ‘Committee on the Financial System’ (1991) and the ‘Committee on the Banking Sector Reforms’ (1998), both presided over by Shri M. Narasimham and their implications for the banking sector. The focus of the analysis is on the evaluation of response of banks in public and private sector individually and as a group to reform measures in the areas of efficiency and profitability during the study period. It also makes a study of comparative performance of public and private sector banks as a group in each area of indicators selected relating to the areas of efficiency and profitability. The implementation of Prudential Norms relating to Asset Classification and Capital Adequacy by banks is assessed. In addition to quantitative analysis, the study examines the customers’ perceptions regarding Service Quality of Public and Private Sector Banks. The performance of banks groups are analyzed in two ways: (i) Time-Series, and (ii) Period-wise using principal component analysis.The book thus provides a comprehensive review of banking reforms and shifts that have taken place in the perceptions, policies and practices of commercial banks. It concludes with major findings of the study and the suggestions that emanate to improve operational and financial performance of commercial banks. The book will be highly useful not only to the academicians and researchers but also to practical bankers.
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