Banking sector in India has undergone remarkable changes since the nationalisatin of 14 major commercial banks in 1969. The geographical and functional coverage of banks world. Similarly, services rendered by banks witnessed major changes after liberalization of the financial sector carried out from the early 1990s. banking system has not transformed itself into a vibrant financial service sector with many innovative and technology-driven services at their end. Nationalisation of commercial banks in 1969 and 1980 was a mixed blessing. After nationalization there was a shift of emphasis from industry to agriculture. The country witnessed rapid expansion in bank branches, even in rural areas. However, bank nationalization created its own problems like excessive bureaucratization, red-tapism and disruptive tactics of trade unions of bank employees. Reforms in the commercial banking sector had two distinct phases. The first phase of reforms introduced subsequent to the release of the report of the Committee on Financial System (Chairman: M. narasimham, 1992 focussed mainly on enabling and strengthening measures. The second phase of reforms, introduced subsequent to the recommendations of the Committee on banking sector reforms (Chairman: M. Narasimham), 1998 placed greater emphasis on structural measures and improvement in standards of disclosure and levels of transparency in order to align the Indian standards with international best practices. Reforms have brought about considerable improvements are reflected in various parameters relating to capital adequacy, asset quality, profitability and operational efficiency. Unfortunately, commercial banks continue to face the problem of non-performing assets (NPAs). The present volume deals with various aspects related to the development of commercial banks in India, with particular focus on post-liberalisation (1991 Onwards) developments.
There are no reviews yet.