Summary |
Banking sector in India has undergone remarkable changes since the nationalization of 14 major commercial banks in 1969. The geographical and functional coverage of banks has surged at a rate that is unprecedented in the world. Similarly, services rendered by banks witnessed major changes after liberalization of the financial sector carried out from the early 1990s. Banking system has now transformed itself into a vibrant financial service sector with many innovative and technology-driven services at their end.
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 (Charman: 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 (Charman: 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 as 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 related to the development of commercial banks in India, with particular focus on post-liberalisation (1991 onwards) developments.
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