THE CHANGING CONTOURS OF INDIAN BANKING : INTERNATIONAL BENCHMARKING AND AGENDA OF REFORMS

ABSTRACT

                             The world is in the midst of several financial crisis.  Over the past 20 years major financial disruptions have taken place roughly every three years, starting with the savings and loans collapse and credit crunch of the late 1980s and the early 1990s down to the unfolding developments in the global financial markets following the US subprime mortgage crisis in August 2007 and deepened as stock markets worldwide crashed in September 2008.  Indian financial sector and the banking industry would not have escape in face of any global financial crisis because our economy has became more integrated with the rest of world financial markets.. In fact, India is going forward of its agenda for second generation financial sector  reforms which goes much beyond the adherence to the ensuring international standards and into meeting the requirements of a high growth economy as well as providing development, both in the short term and over the medium term.

                In this given perspective of the changing landscape of banking industry in India’s financial system, an attempt has been made in this paper to overview the growth and structure of Indian banking system in India’s economic development particularly after financial sector liberalisation that has led to  transformation of Indian banking sector over the past two decades with the observations to find out the relevant answers to the strength, weakness, opportunities and the threat to Indian banking sector in the midst of dislocation in global market both in the present and in future.

Key words: Benchmarking, liberalisation, Indian banking sector,