A

RESEARCH REPORT
ON
IMPACT OF REFORMS
ON
PUBLIC SECTOR BANKS IN INDIA
SUBMITTED TO:
SRM UNIVERSITY, MODINAGAR(UP)

IN THE PARTIAL FULFILLMENT FOR THE DEGREE OF
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Ms, N"%." A!'!a K$&a!
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SRM UNIVERSITY
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SRM UNIVERSITY
INTRODUCTION
OB<ECTIVES OF
THE STUDY
LITRATURE
REVIE=
RESEARCH
METHODOLOGY
LIMITATIONS
OF THE
STUDY
CONCLUSION
BIBLIOGRAPHY
ANNE>URES
//DECLARATION//
I hereby certify that the work which is presented in this project report entitled
I!"ACT O# RE#OR!$ ON "%&LIC $ECTOR &AN'$ IN INDIA( in
partial f)lfill*ent of the re+)ire*ent for the award of the de,ree of !asters
in &)siness Ad*inistration -!&A./ $R! %ni01ersity/ $R!/ is an a)thentic
record of *y ori,inal work carried o)t d)rin, the 2
th
se*ester0
I ha1e not s)b*itted the *atter e*bodied in the project report for the award
of any other de,ree0
"lace3 !odina,ar Na*e3 "awan ')*ar "andey
Date3 / / Re,0 No0 4566747787

ACKNO=LEDGEMENT
9ratit)de is not a thin, of e:pression; it is *ore a *atter of feelin,0(
There is always a sense of ,ratit)de which one e:press for others for their help and
s)per1ision in achie1in, the ,oals0 I too e:press *y deep ,ratit)de to each and e1eryone
who has been helpf)l to *e in co*pletin, the project report s)ccessf)lly0
I wo)ld also like to thank al*i,hty 9od for blessin, showered on *e d)rin, the
co*pletion of Dissertation Report0
#irst of all/ I a* hi,hly thankf)l to for allowin, *e to p)rs)e *y Dissertation Report on
I&/a2t R1'!&s O# P$53"2 s2t'! Ba#?s "# I#%"a,0
I ,i1e *y re,ards and sincere thanks to Ms, N"%." A!'!a K$&a! (P!'@2t 7$"%)who
has de1oted her precio)s ti*e in ,)idin, *e < helpin, *e co*plete it within ti*e0
I feel self=short of words to thanks &4 /a!#ts a#% 1!"#%s who had directly or
indirectly instr)*ental in the co*pletion of the project0 I a* indebted to all respondents
for their ti*e passion d)rin, the lon, con1ersations0
(Pa6a# K$&a! Pa#%4)
E>ECUTIVE SUMMARY
T. 2'! /!'2sss '1 a 2'&/a#4 &a4 2.a#7 '0! t"& "# a22'!%a#2 6"t. t. s."1t"#7
!A$"!&#ts '1 5$s"#ss 2'&/t"t"0#ss,
T. 1"#a#2"a3 %03'/&#t was ,i1en i*pet)s with the adoption of social control o1er
banks in 6>8? and s)bse+)ently nationali@ation of 62*ajor sched)led banks in A)ly in 6>8>0
$ince then the bankin, syste* has for*ed the core of the Indian financial syste*0 In the three
decades followin, the first ro)nd of nationali@ation/ a,,re,ate deposits of sched)led banks ha1e
increased at a co*po)nd ann)al ,rowth rate of 6?0BCd)rin the period of -6>8>=>>. while bank
credit e:panded at the rate of 6804C "A0 with the branches of *ore than 8?777 of which 2B0?C
bein, r)ral/ to)chin, the li1es of *illions of people e1eryday/ the Indian bankin, sector
constit)tes the *ost si,nificant se,*ent of the financial syste* of India0
It is a,ainst the back,ro)nd of these circ)*stances/ that the de1elop*ent of a so)nd
bankin, syste* was considered essential for the f)t)re ,rowth of the financial syste*0 #inancial
sector refor*s were initiated in the co)ntry in 6>>D with a 1iew to i*pro1in, the efficiency in
the process of financial inter*ediation/ enhancin, the effecti1eness in the cond)ct of *onetary
policy and creatin, cond)cti1e en1iron*ent for the inte,ration of do*estic financial sector with
the ,lobal syste*0
The bankin, syste* is/ by far/ the *ost do*inant se,*ent of the financial sector/
acco)ntin, as it does/ for o1er B7 per cent of the f)nds flowin, thro),h the financial sector0 The
a,,re,ate deposits of the sched)led co**ercial banks -$C&s. rose fro* Rs05/75/5>> crore in
!arch 6>>? to Rs066/74/487 crore in !arch D77D representin, a rise of 6? per cent0 D)rin, the
sa*e period/ the credit portfolio -food and non=food. of $C&s ,rew fro* Rs0D/?B/276 crore to
Rs0 5/B>/?D4 crore/ i0e0 by 68 per cent0 The net profits of $C&s witnessed a noticeable )pt)rn
fro* Rs08/274 crore in D777=76 to Rs066/ 5?D crore in D776= 7D0 The e:tent and co1era,e of the
bankin, syste* can be ,a),ed fro* the fact that the n)*ber of branches of $C&s ,rew fro*
B725 in 6>8> to 88/6B8 in A)ne D77D0 Ehile r)ral branches constit)ted 2> per cent of the total in
D77D/ se*i=)rban branches acco)nted for DD per cent/ )rban branches acco)nted for 68 per cent
and *etropolitan branches acco)nted for 64 per cent0
#inancial sector refor*s introd)ced in the early 6>>7s as a part of the str)ct)ral refor*s
ha1e to)ched )pon al*ost all aspects of bankin, operations0 #or a few decades precedin, the
onset of bankin, and financial sector refor*s in India/ banks operated in an en1iron*ent that
was hea1ily re,)lated and characterised by s)fficient barriers to entry/ which protected the*
a,ainst too *)ch co*petition0 This re,)lated en1iron*ent set in co*placency in the *anner in
which banks operated and responded to the c)sto*er needs0 The ad*inistered interest rate
str)ct)re/ both on the liability and the assets sides/ allowed banks to earn reasonable spread
witho)t *)ch efforts0 Despite this/ howe1er/ banksF profitability was low and N"Ls le1el was
hi,h/ reflectin, lack of efficiency0 Altho),h banks operated )nder re,)latory constraints in the
for* of stat)tory holdin, of 9o1ern*ent sec)rities -stat)tory li+)idity ratio or $LR. and the cash
reser1e ratio -CRR. and lacked f)nctional a)tono*y and operational efficiency/ the fact was that
*ost banks did not operate efficiently0
Ehile the broad objecti1es of the financial sector refor*s/ th)s/ were to enhance
efficiency and prod)cti1ity/ the process of refor*s were initiated in a ,rad)al and properly
se+)enced *anner so as to ha1e a reinforcin, effect0 The approach has been to consistently
)p,rade the financial sector by adoptin, the international best practices thro),h a cons)ltati1e
process0 #inancial sector refor*s were carried o)t in two phases0 The first phase of refor*s was
ai*ed at creatin, prod)cti1e and profitable financial instit)tions operatin, within the
en1iron*ent of operational fle:ibility and f)nctional a)tono*y0 The foc)s of the second phase of
financial sector refor*s startin, fro* the second=half of 6>>7s has been on stren,thenin, of the
financial syste* consistent with the *o1e*ent towards ,lobal inte,ration of financial ser1ices0
CONTENTS
INTRODUCTION
PROFILE OF STUDY
RATIONAL OF STUDY
LITERATURE REVIE=
OB<ECTIVE OF THE STUDY
RESEARCH METHODOLOGY
SAMPLING AND SAMPLING DESIGN
ANALYTICAL TOOLS
STATISTICAL TOOLS
DATA COLLECTION
HYPOTHESIS TESTING
CONCLUSION AND RECOMMENDATION
LIMITATIONS OF THE STUD
BIBLIOGRAPHY
ANNE>URES
INTRODUCTION
#inancial sector refor*s introd)ced in the early 6>>7s as a part of the str)ct)ral
refor*s ha1e to)ched )pon al*ost all aspects of bankin, operations0 #or a few decades
precedin, the onset of bankin, and financial sector refor*s in India/ banks operated in an
en1iron*ent that was hea1ily re,)lated and characterised by s)fficient barriers to entry/
which protected the* a,ainst too *)ch co*petition0 This re,)lated en1iron*ent set in
co*placency in the *anner in which banks operated and responded to the c)sto*er
needs0 The ad*inistered interest rate str)ct)re/ both on the liability and the assets sides/
allowed banks to earn reasonable spread witho)t *)ch efforts0 Despite this/ howe1er/
banksF profitability was low and N"Ls le1el was hi,h/ reflectin, lack of efficiency0
Altho),h banks operated )nder re,)latory constraints in the for* of stat)tory holdin, of
9o1ern*ent sec)rities -stat)tory li+)idity ratio or $LR. and the cash reser1e ratio -CRR.
and lacked f)nctional a)tono*y and operational efficiency/ the fact was that *ost banks
did not operate efficiently0
Indian bankin, syste* operated for a lon, ti*e with hi,h reser1e re+)ire*ents
both in the for* of Cash Reser1e Ratio -CRR. and $tat)tory Li+)idity Ratio -$LR.0 This
was *ainly to acco**odate the hi,h fiscal deficit and its *onetisation0 The efforts in the
recent period ha1e been to lower both the CRR and $LR0 The $LR has been ,rad)ally
red)ced fro* a peak of 4B05 per cent to D5 per cent0 The CRR was red)ced fro* its peak
le1el of 6507 per cent *aintained d)rin, 6>B> to 6>>D to 205 per cent of NDTL in A)ne
D7740 Altho),h the Reser1e &ank contin)es to p)rs)e its *edi)*=ter* objecti1e of
red)cin, the CRR/ in recent years/ on a re1iew of *acroecono*ic and *onetary
conditions/ the CRR has been re1ised )pwards to 807 per cent -to be effecti1e fro* !arch
4/ D77?.0
IMPACT OF REFORMS ON THE BANKING SECTOR
These refor* *eas)res ha1e had *ajor i*pact on the o1erall efficiency and
stability of the bankin, syste* in India0 The present capital ade+)acy of Indian banks is
co*parable to those at international le1el0 There has been a *arked i*pro1e*ent in the
asset +)ality with the percenta,e of ,ross non=perfor*in, assets -N"As. to ,ross
ad1ances for the bankin, syste* red)ced fro* 6202 per cent in 6>>B to ?0D per cent in
D7720
Eith the co**ence*ent of the New Econo*ic "olicy/ a few new ,eneration
techno=sa11y banks s)ch as ICICI bank and GD#C bank ca*e into operation and
chan,ed the whole bankin, concept in India was considered fairly *at)re in ter*s of
1ariety of ser1ices pro1ided assets +)ality00 Ee can *eas)re the perfor*ance of Indian
p)blic sector banks by )sin, the so*e si,nificant indicators s)ch as Non=perfor*in,
assets/ profitability/ capital position and assets +)ality0
It is diffic)lt to obtain per*issions to start a bank0 #orei,n banks are practically banned
fro* openin, new branches0 E1en do*estic banks ha1e to take per*ission fro* the R&I/
to open one branch at a ti*e0 !any r)les ha1e been desi,ned to fa1o)r p)blic sector
banks0 These weaknesses in policy ha1e led to poor co*petition in bankin,0 Table 8
co*pares the bi,,est 67 banks in the co)ntry in D772=75 a,ainst the sit)ation 64 years
earlier/ in 6>>6=>D0 The 67=fir* concentration ratio did drop si,nificantly/ fro* >D0B8C
to 8D0>>C0 This s),,ests hi,h ,rowth on the part of s*aller banks0 Gowe1er/ the na*es
of the bi,,est banks are re*arkably alike0 The new na*es of D772=75 are shown in
boldface0 Of these/ ICICI was always a bi, bank/ and is not in the list for 6>>6=>D p)rely
on acco)nt of not bein, classified as a bank0 Apart fro* this/ there are only two new
na*es in D772=750 The do*ination of the p)blic sector is also hi,hly 1isible0 There are no
pri1ate or forei,n banks in the D772=75 list/ other than ICICI &ank
PUBLIC SECTORE REFORMS
Co**ercial bankin, constit)tes the lar,est se,*ent of the Indian financial
syste*0 Despite the ,eneral approach of the financial sector refor* process to establish
re,)latory con1er,ence a*on, instit)tions in1ol1ed in broadly si*ilar acti1ities/
,i1en the lar,e syste*ic i*plications of the co**ercial banks/ *any of the
re,)latory and s)per1isory nor*s were initiated first for co**ercial banks and were later
e:tended to other types of financial inter*ediaries0 After the nationalisation of *ajor
banks in two wa1es/ startin, in 6>8>/ the Indian bankin, syste* beca*e
predo*inantly ,o1ern*ent owned by the early 6>>7s0 &ankin, sector refor*
essentially consisted of a two pron,ed approach0 Ehile n)d,in, the Indian bankin,
syste* to better health thro),h the introd)ction of international best practices in
pr)dential re,)lation and s)per1ision early in the refor* cycle/ the idea was to increase
co*petition in the syste* ,rad)ally0 The i*ple*entation periods for s)ch nor*s were/
howe1er/ chosen to s)it the Indian sit)ation0 $pecial e*phasis was placed on b)ildin, )p
the risk *ana,e*ent capabilities of the Indian banks0 !eas)res were also initiated to
ens)re fle:ibility/ operational a)tono*y and co*petition in the bankin, sector0 Acti1e
steps ha1e been taken to i*pro1e the instit)tional arran,e*ents incl)din, the le,al
fra*ework and technolo,ical syste* within which the financial instit)tions and
*arkets operate0 'eepin, in 1iew the cr)cial role of effecti1e s)per1ision in the creation
of an efficient and stable bankin, syste*/ the s)per1isory syste* has been re1a*ped0
F$!t.! R1'!& A!as
EBt#s"'# '1 R"s? &a#a7&#t /!a2t"2s3 &anks )se statistical *odels to
*eas)re and *ana,e the financial risks to which they are e:posed0 $ince *odels
cannot incorporate all possible risk o)tco*es and ,enerally are not capable of
capt)rin, e1ent risks and s)dden/dra*atic chan,es/ banks need to s)pple*ent
*odels with stress test0
Bas3 II "&/3&#tat"'#3 The R&I intended to i*ple*ent &asel II
reco**endations with effect fro* *arch46/ D77B0 All $C&s are enco)ra,ed to
adopt it not later than !arch 46/ D77>0 The &asel co**ittee on &ankin,
$)per1ision had )ndertaken the fifth +)antitati1e i*pact st)dy to assess the
i*pact of adoption of the re1ised fra*ework0
M'!t7a7 G$a!a#t C'&/a#"s3 As a*o)nted in the b)d,et/ the R&I has now
placed in p)blic do*ain draft ,)idelines on *ort,a,e ,)arantee co*panies0 This
will be a new cate,ory )nder the N&#C sector and the acti1ities will ne in
thenat)re of *ort,a,e ,)arantees and not *ort,a,e ins)rance0 !ort,a,e
ins)rance falls with in the j)risdiction of the ins)rance re,)lator0
FSAP;S31 Asss&#t3 a co**it*ent on financial sector assess*ent to )ndertake
a self=asses*ent of financial sector stability and de1elop*ent has been
constit)ted0 #or the p)rpose of carryin, o)t the task )nder the ter*s of reference/
the co**ittee has decided to set )p fo)r ad1isory panels which will be assistin,
the co**ittee in its assess*ent e:ercise and will be drawn fro* non official
e:perts rele1ant areas related to financial stability assess*ent and stress testin,
transparency standards/ financial re,)lation and s)per1ision and instit)tions and
*arket str)ct)re respecti1ely0
D!a1t G$"%3"#s '# A22'$#t"#7 As/2ts3 Reco,ni@in, the i*portance of a
rob)st acco)ntin, fra*ework in the bankin, sector/ the R&I had )ndertaken an
e:ercise a few years back to assess the ,aps in co*pliance by banks with the
acco)ntin, standards iss)ed by the Instit)te of Chartered Acco)ntants Of India0
PERFORMANCE OF THE PUBLIC SECTOR UNDER
THE REFORM PROCESS
BANKING SECTOR
&ankin, sector refor* has established a co*petiti1e syste* dri1en by *arket
forces0 The process/ howe1er/ has not res)lted in disre,ard of social objecti1es s)ch as
*aintenance of the wide reach of the bankin, syste* or channelisation of credit towards
disad1anta,ed b)t socially i*portant sectors0 At the sa*e ti*e/ the refor* period
e:perienced stron, balance sheet ,rowth of the banks in an en1iron*ent of operational
fle:ibility0 A key achie1e*ent of the bankin, sector refor* has been the sharp
i*pro1e*ent in the financial health of banks/ reflected in si,nificant i*pro1e*ent in
capital ade+)acy and i*pro1ed asset +)ality0 This has been achie1ed despite
con1er,ence of the pr)dential nor*s with the international best practices0 D There ha1e
also been s)bstantial i*pro1e*ents in the co*petiti1eness of the Indian bankin,
sector reflected in the chan,in, co*position of assets and liabilities of the bankin, sector
across bank ,ro)ps0 In line with increased co*petiti1eness/ there has been i*pro1e*ent
in efficiency of the bankin, syste* reflected inter alias in the red)ction in interest
spread/ operatin, e:pendit)re and cost of inter*ediation in ,eneral 0
Conte*poraneo)sly there ha1e been i*pro1e*ents in other areas as well
incl)din, technolo,ical deepenin, and fle:ible h)*an reso)rce *ana,e*ent 0 A
*ore detailed disc)ssion on the perfor*ance analysis of the bankin, sector )nder
the refor* process is ,i1en below0
S/2"a3 1at$!s '1 t. !1'!&s "# t. 1"#a#2"a3 s2t'!
The refor*s were not dri1en by any bankin, crisis nor were they an o)tco*e of
any e:ternal s)pport packa,e0 They were )ndertaken *)ch before the i*portance
of the financial sector to pre1ent crisis was reco,ni@ed by international a,encies
and other co)ntries in early 6>>7s before the Asian financial crisis0
The refor*s were caref)lly se+)enced in ter*s of instr)*ents and objecti1es0
Th)s/ pr)dential nor*s and s)per1isory stren,thenin, were introd)ced early in
the refor* cycle/ followed by interest rate dere,)lation and ,rad)ally lowerin, of
stat)tory pree*ptions0 The *ore co*ple: aspects of le,al and acco)ntin,
*eas)res were )shered in s)bse+)ently when the basic tenets of the refor*s were
already in place0 !ore recently/ the re,)latory fra*ework has also foc)sed on
ens)rin, ,ood ,o1ernance thro),h fit and proper( owners/ directors and senior
*ana,ers of the banks0 The preference has been for di1ersified ownership0
Ehile the foc)s of the first ,eneration of refor*s was to create an efficient/
prod)cti1e and profitable financial ser1ices ind)stry/ the second phase of
financial sector refor*s/ be,innin, fro* the second=half of the 6>>7s/ was ai*ed
at stren,thenin, of the financial syste* and introd)ction of str)ct)ral
i*pro1e*ents0
The need to prepare the financial syste* in a *ore ,lobalised en1iron*ent
and to pro*ote financial stability in the face of do*estic and e:ternal shocks was
on top of a,enda of refor*s0 Eith increasin, ,lobalisation of the Indian econo*y/
the refor* process witnessed a si,nificant *o1e towards adoption of international
best practices in se1eral cr)cial areas of i*portance s)ch as pr)dential nor*s/
bankin, s)per1ision/ data disse*ination and corporate ,o1ernance0
Eith a 1iew to increasin, co*petition in the bankin, sector new pri1ate sector
banks were licensed0 A prere+)isite for ,rant of the licence was that these banks
had to be f)lly a)to*ated fro* day one0 The res)lts are self=e1ident as these
banks ha1e beco*e hi,h=tech banks0 This has had a de*onstration( effect on the
entire syste*0 The 9o1ern*ent ownership in nationali@ed and $tate &ank of India
was bro),ht down by allowin, the* to raise capital fro* the e+)ity *arket )p to
2>/25 per cent of paid=)p capital0
A )ni+)e feat)re of the refor* of p)blic sector banks/ which do*inated the Indian
bankin, sector/ was the process of financial restr)ct)rin,0 &anks were
recapitalised by the ,o1ern*ent to *eet pr)dential nor*s thro),h recapitalisation
bonds0 The *echanis* of hi1in, off bad loans to a separate ,o1ern*ent asset
*ana,e*ent co*pany was not considered appropriate in 1iew of the *oral
ha@ard0 The o1erhan, of non=perfor*in, loans had to be *ana,ed by the banks
the*sel1es0
The s)bse+)ent di1est*ent of e+)ity and offer to pri1ate shareholders was
)ndertaken thro),h a p)blic offer and not by sale to strate,ic in1estors0
Conse+)ently/ all the p)blic sector banks/ which iss)ed shares to pri1ate
shareholders/ ha1e been listed on the e:chan,es and are s)bject to the sa*e
disclos)re and *arket discipline standards as other listed entities0
The cost of recapitali@ation to 9D" has been low relati1e to e:perience in other
co)ntries0 On a c)*)lati1e basis it worked o)t to abo)t one percent of the 9D"0
#)rther*ore/ the *arket 1al)e of e+)ity held by 9o1ern*ent now far e:ceeds the
recapitali@ation cost0 Eith a 1iew to carry the refor* process f)rther/ as
anno)nced in the &)d,et last year the 9o1ern*ent decided to con1ert the recap
bonds iss)ed as special sec)rities -basically non=ne,otiable. to *arketable
sec)rities indistin,)ishable fro* other 9o1ern*ent sec)rities 0 The process has
already started and in D778=7? the 9o1ern*ent con1erted nearly Rs B7 billion to
$LR sec)rities0 The balance special sec)rities will be phased o)t o1er a period0
&anks were also allowed to di1ersify into 1ario)s financial ser1ices and are now
offerin, a whole ran,e of financial prod)cts like )ni1ersal banks0
RATIONAL OF THE STUDY
The Refor*s in the Indian &ankin, syste* ha1e ass)*ed lar,e proportions and
are a contin)in, deterrent to the s*ooth flow of credit to the prod)cti1e sector of ind)stry
and a,ric)lt)re0
The hi,h le1el co**ittee on financial syste* constit)ted by R&I to *ake
reco**endation on financial sector refor*s also obser1ed that serio)s proble* are
pla,)in, the financial sector which is reflected in decline in prod)cti1ity and efficiency
and erosion of profitability d)e to deterioration in the +)ality of loan portfolio restrictin,
inco*e ,eneration and enhance*ent of capital f)nds/ acco*panied by inade+)ate loan
loss pro1isions0
A hi,h fi,)re of loan defa)lts p)t +)estion *arks on the credit appraisal0 Alon,
with other ca)ses/ i*proper e1al)ation of the credit re+)ire*ents or repayin, capacity of
the borrowers res)lts in )nder financin, or o1er financin, and affects the cost and
re1en)e str)ct)re of the acti1ity and *ay render the acti1ity )n1iable0 Non=reco1ery
affect the profitability of banks0

LITERATURE REVIE=
Literat)re Re1iew is the way to e:press back,ro)nd of ideas that co*e to *ind
d)rin, the research for*)lation0 I asked 1ario)s e*ployees of the bank abo)t the new
technolo,ical initiati1e taken by the banks0
The research bein, cond)cted was Ct' 0a3$at t. "&/a2t '1 !1'!&s '# /$53"2 s2t'!
D 2'&&!2"a3 5a#?s,C
Once the proble* is for*)lated/ the researcher )ndertakes an e:tensi1e literat)re re1iew
connected with the proble*0
BOOKS
6. C,R K't.a!"
-
: The infor*ation re,ardin, the basics of research and research
*ethodolo,y/ what are the different types of research desi,ns/ proble* state*ent/
so)rces of data collection and *ethods of data collection are ,i1en in this
section08
D. S,P G$/ta
:
: The infor*ation re,ardin, the statistical tools and their li*itations
in different fields the research is ,i1en in this section0 This section e:plains/ why
to )se correlation and the sit)ations in which correlation can be )sed/ and
*eanin, of correlation 0 This section also e:plains the Trend Analysis Techni+)e00
4. S,C, G$/ta
8
: Infor*ation re,ardin, 1ario)s statistical < analytical tools is ,i1en
in this section0
2. ="3?"#s'# D B.a#%a!?a!
9
: In this section 1ario)s parts of research and research
*ethodolo,y is ,i1en which tells abo)t the techni+)es of doin, research0
5. T!"/at." P,C
*
: this book helped *e in knowin, abo)t the chan,e0
8. G$/ta C,B,=
?,
H!ana,e*ent theory and practice(3 this book helped *e in
findin, the factors affectin, the or,ani@ationFs chan,e0
OB<ECTIVES OF THE STUDY
The *ajor objecti1e of the st)dy is to assess the i*pact of refor* *eas)res on the
efficiency/ profitability and o1erall perfor*ance of banks 1is=I=1is bank ,ro)ps in
p)blic and pri1ate sector0
To *ake a co*parati1e analysis of the perfor*ance of p)blic and pri1ate sector
co**ercial banks d)rin, the co)rse of i*ple*entation of bankin, sector refor*s0
RESEARCH METHODOLOGY

SECONDARY DATA
The secondary data on the other hand/ are those which ha1e already been collected by
so*eone else and which ha1e already been passed thro),h the statistical processes0 Ehen
the researcher )tili@es secondary data then he has to look into 1ario)s so)rces fro* where
he can obtain the*0 #or e0,0 &ooks/ *a,a@ine/ newspaper/ Internet/ p)blications and
reports0 In the present st)dy I ha1e *ade )se of secondary data collected fro* 1ario)s
websites/ Ao)rnals < Jario)s R&IFs &)lletins etc000
STATISTICAL TOOLS
I#t!'%$2t"'#:;
An ed)cated citi@en needs an )nderstandin, of basic statistical tool to
f)nction in a world that is beco*in, increasin,ly dependant on +)antitati1e
infor*ation0 $tatistics *eans n)*erical description to *ost people0 In fact the ter*
statistics is ,enerally )sed to *ean n)*erical facts and fi,)res s)ch as a,ric)lt)re
prod)ction d)rin, a year/ rate of inflation and so on0 Gowe1er as a s)bject of st)dy/
statistics refers to the body of principles and proced)res de1eloped for the collection/
classification/ s)**ari@ation and interpretation of n)*erical data and for the )se of
s)ch data0
MEANING:;
&roadly speakin,/ the ter* statistics has been ,enerally )sed in two senses3=
P3$!a3 S#s
S"#7$3a! S#s
P3$!a3 s#s refers to the #$&!"2a3 %ata0 S"#7$3a! S#s refers to a S2"#2 in
which we deals with the techni+)es of collectin,/ classifyin,/ presentin,/ analy@in,
and interpretin, the data/ the concept in its sin,)lar sense/ refers to Stat"st"2a3
Mt.'%,
PURPOSE:;

Eitho)t the assistance of $tatistical !ethod/ an or,ani@ation wo)ld find it
i*possible to *ake sense of the h),e data0 The p)rpose of statistics is to3=
!anip)late
$)**ari@e
in1esti,ate
the data so that )sef)l decision *akin, infor*ation res)lts co)ld be fo)nd o)t0 In fact/
e1ery b)siness *ana,er needs a so)nd back,ro)nd of statistics0 $tatistics is a set of
Decision !akin, techni+)es which aids b)siness*an in drawin, inferences fro* the
a1ailable data0
STATISTICAL TOOLS:;
$tatistical tools are the basic *eas)res/ which helps in definin, the relation
between different ite*s/ present/ past and f)t)re trend of the f)t)re trend of the
partic)lar b)siness etc0 A wide 1ariety of statistical tools are a1ailable and any of
the* can be )sed by any b)siness*an dependin, )pon the nat)re of his trade0 Jario)s
statistical tools are3=
60 Correlation
D0 Re,ression
40 Inde: N)*bers
20 "robability Distrib)tion
50 Gypothesis Testin,
DATA COLLECTION
P!1'!&a#2 A#a34s"s +Ba#?"#7
(a) Ra2. D D/#"#7
="% !a2. '1 5a#?"#7 s4st& &a"#ta"#%
a1t! !1'!&s,
Ds/"t s3"7.t %23"# s.a! '1 %"!2t 13'6
t'6a!%s %"sa%0a#ta7% s2t'!s 2'#t"#$%
C'#s"%!a53 "#2!as "# /! 5!a#2. 5$s"#ss
s"#2 t. "#"t"at"'# '1 !1'!&s
S$5sta#t"a3 %/#"#7 '1 1"#a#2"a3 s2t'!
P!1'!&a#2 A#a34s"s +Ba#?"#7 +
(5) Ba3a#2 S.t
K Deposits re*ained stable and predo*inant so)rce of f)nds0
K $hare of loans in total liabilities declined in *id=6>>7s/ b)t re1i1ed in recent
years
K $tron, increase in in1est*ent acti1ities
K Despite sharp decline in $LR lar,e 9ilt holdin,s
K Despite so*e increase non=$LR in1est*ent re*ains low
P!1'!&a#2 A#a34s"s +Ba#?"#7 +
(2) Ca/"ta3 St!$2t$! (*)
RESEARCH
METHODOLOGY
K Distinct i*pro1e*ent in CRAR of banks
K In p)blic sector banks recapitalisation by ,o1ern*ent initially -abo)t 6C of 9D".
Ca/"ta3 St!$2t$! (()
(%) Asst E$a3"t4
K !arked i*pro1e*ents in asset +)ality
K ")blic sector banks showed *ore credible perfor*ance in N"L *ana,e*ent than
pri1ate sector banks
() C'&/t"t"'#
(1) E11"2"#24
K Clear i*pro1e*ent in profitability in the post=refor* period
K Red)ction in spread and operatin, e:pendit)re
K I*pro1e*ent in efficiency across the bank ,ro)ps
R7!ss"'#
Linear re,ression is witho)t do)bt the *ost fre+)ently )sed statistical *ethod0 A
distinction is )s)ally *ade between si*ple re,ression -with only one e:planatory
1ariable. and *)ltiple re,ression -se1eral e:planatory 1ariables. altho),h the o1erall
concept and calc)lation *ethods are identical0
The principle of linear re,ression is to *odel a +)antitati1e dependent 1ariable L tho),h
a linear co*bination of p +)antitati1e e:planatory 1ariables/ M6/ MD/ N/ Mp0 The
deter*inist *odel -not takin, rando*ness into acco)nt. is written for obser1ation i as
follows3
Deposits TotalINJE$T!ENT
Non=$LR
INJE$T!ENT
Loans and
ADJANCE$
6>>6=>D ??0? DB0> 0 0 280B
6>>D=>4 ?B02 4705 0 0 25
6>>4=>2 B704 4502 5 4B0?
6>>2=>5 ?B0> 4408 208 2705
6>>5=>8 ?802 46 405 2D06
6>>8=>? ?>0> 4404 5 26
6>>?=>B B6 420D ?06 270B
6>>B=>> B606 450? B08 4B0B
6>>>=77 B606 4?04 >06 270D
D777=76 B605 4B B0> 2708
D776=7D ?B05 4B0D B0? 2D
D77D=74 ?>0B 270B B06 2408
D774=
72O B705 260? ?0D 25
Gere in this table deposits are independent 1ariables and In1est*ent and Loans and
ad1ances are dependant on deposits therefore we can )se Re,ression analysis for this data
with the help of ML$TAT0
TotalINJE$T!ENT Deposits
6>>6=>D DB0> ??0?
6>>D=>4 4705 ?B02
6>>4=>2 4502 B704
6>>2=>5 4408 ?B0>
6>>5=>8 46 ?802
6>>8=>? 4404 ?>0>
6>>?=>B 420D B6
6>>B=>> 450? B606
6>>>=77 4?04 B606
D777=76 4B B605
D776=7D 4B0D ?B05
D77D=74 270B ?>0B
D774=
72O 260? B705
E1al)atin,
the
infor*ation
bro),ht by
the 1ariables
-G7 P
LP!oy-L..
3

$o)rce D#
$)* of
s+)ares
!ean
s+)are
#isherQs
# "r R #
!odel 6 85052D 85052D 80D7> 70747
Resid)als 66 66806D6 670558
Total 6D 6B60884
Loans and
ADJANCE$ Deposits
6>>6=>D 280B ??0?
6>>D=>4 25 ?B02
6>>4=>2 4B0? B704
6>>2=>5 2705 ?B0>
6>>5=>8 2D06 ?802
6>>8=>? 26 ?>0>
6>>?=>B 270B B6
6>>B=>> 4B0B B606
6>>>=77 270D B606
D777=76 2708 B605
D776=7D 2D ?B05
D77D=74 2408 ?>0B
D774=
72O 25 B705
E1al)atin,
the
infor*ation
bro),ht by
the 1ariables
-G7 P
LP!oy-L..
3

$o)rce D#
$)* of
s+)ares
!ean
s+)are
#isherQs
# "r R #
!odel 6 6>0DD4 6>0DD4 40BD6 707??
Resid)als 66 550425 50746
Total 6D ?2058B
T!#% A#a34s"s O1 NPAFs "# P$53"2 S2t'! Ba#?s D$!"#7 P!"'%
(*GG(;)()
*:G!'ss NPAs t' G!'ss A%0a#2s3
Lear 9ross N"As / 9ross Ad1ances Trend Line
60 6>>D=>4 D40D =
D0 6>>4=>2 D20B DD05
40 6>>2=>5 6>05 D70B
20 6>>5=>8 6B07 6B024
50 6>>8=>? 6?0B 6?0D8
80 6>>?=>B 6807 68058
?0 6>>B=>> 650> 65044
B0 6>>>=77 6207 6206
>0 D777=76 6D02 6D05
670 D776=7D 6606 =
Note3 $eries S 63 9ross N"As to 9ross Ad1ances
$eries S D3 Trend Line
ANALYSIS
D)rin, the year 6>>D=>4 to D776=7D/ there has been a sharp decline in 9ross N"As to
9ross Ad1ances0 The Trend Line also shows a contin)es decreasin, trend0 #ro* this/ it
can be concl)ded that o1er the ne:t three years -i0e D77D=74 to D772=75./ 9ross N"As to
9ross Ad1ances of p)blic sector banks wo)ld decrease0
(, G!'ss NPAs t' T'ta3 A%0a#2s:
Lear 9ross N"As / Total Ad1ances Trend Line
60 6>>D=>4 660B =
D0 6>>4=>2 670B 67024
40 6>>2=>5 B0? >0D4
20 6>>5=>8 B0D B0D4
50 6>>8=>? ?0B ?088
80 6>>?=>B ?07 ?068
?0 6>>B=>> 80? 8058
B0 6>>>=77 807 8077
>0 D777=76 504 502
670 D776=7D 20> =
FINDI
Note3 $eries S 63 9ross N"As to Total Ad1ances
$eries S D3 Trend Line
ANALYSIS
D)rin, the year 6>>D=>4 to D776=7D / there has been considerable decline in 9N"As to
Total Assets0 The Trend Line too says the sa*e story0 Therefore the 9N"As to Total
Assets of p)blic sector banks will decline in the ne:t three years to co*e -i0e D77D=74 to
D772=75.0
8, Nt NPAs t' Nt A%0a#2s:
Lear Net N"As / Net
Ad1ances
Trend Line
60 6>>D=>4 6604 =
D0 6>>4=>2 6D0B? 6608D
40 6>>2=>5 670? 670BD
20 6>>5=>8 B0> >08
50 6>>8=>? >0D B0?8
80 6>>?=>B B0D B05
?0 6>>B=>> B06 ?0>
B0 6>>>=77 ?02 ?02
>0 D777=76 80? 8084
670 D776=7D 50B =
Note3 $eries = 63 Net N"As to Net Ad1ances
$eries S D3 Trend Line
ANALYSIS
D)rin, the year 6>>D=>4 to D776=7D/ there has been a steady and considerable decrease in
percenta,e of Net N"As to Net Ad1ances0 The Trend Line also shows that there is a
decreasin, trend and Net N"As o1er ne:t three years -i0e D77D=74 to D772=75. wo)ld
decrease considerably0
-, Nt NPAs t' T'ta3 Assts:
Lear Net N"As / Total Assets Trend Line
60 6>>D=>4 208 =
D0 6>>4=>2 506 2058
40 6>>2=>5 2 20D4
20 6>>5=>8 408 40?8
50 6>>8=>? 40? 4054
80 6>>?=>B 404 4048
?0 6>>B=>> 406 406
B0 6>>>=77 D0> D0>
>0 D777=76 D0? D088
670 D776=7D D02 =
Note3 $eries =63 Net N"As to Total Assets
$eries S D3 Trend Line
A#a34s"s
D)rin, the year 6>>D=>4 to D776=7D/ there has been a *ar,inal decline in Net N"As to
Total Assets0 The Trend Line shows that there has been a steady decline and it can be
inferred that o1er ne:t three years -i0e D77D=74 to D772=75./ Net N"As to Total Assets of
p)blic sector banks wo)ld decrease b)t at a *ar,inal rate0
FINAL ANALYSIS
The f)t)re pict)re of Co**ercial banks *ore so the p)blic sector banks see* to be rosy0
As the Trend Line s),,ests that the N"As of p)blic sector banks will decline *ar,inally
both in ter*s of 9ross and Net fi,)res o1er ne:t three years0 This *ay be d)e to hi,her
pro1isions/ which the p)blic sector banks ha1e been pro1idin,0 The real iss)e to be
identified is tho),h the N"As/ as a percenta,e see*s to be declinin, o1er the years b)t
the absol)te fi,)res see*s to be increasin,0 In this 1ein it wo)ld be interestin, to see the
N"As both in ter*s of absol)te fi,)res and in ter*s of percenta,e of p)blic sector banks
in the co*in, three years0
ANCOVA
ANCOJA -ANalysis of COJAriance. can be seen as a *i: of ANOJA and linear
re,ression as the dependent 1ariable is of the sa*e type/ the *odel is linear and the
hypotheses are identical0 In reality it is *ore correct to consider ANOJA and linear
re,ression as special cases of ANCOJA0
I#t!a2t"'#s 5t6# A$a#t"tat"0 0a!"a53s a#% 1a2t'!s
One of the feat)res of ANCOJA is to enable interactions between +)antitati1e 1ariables
and factors to be taken into acco)nt0 The *ain application is to test if the le1el of a factor
-a +)alitati1e 1ariable. has an infl)ence on the coefficient -often called slope in this
conte:t. of a +)antitati1e 1ariable0 Co*parison tests are )sed to test if the slopes
correspondin, to the 1ario)s le1els of a factor differ si,nificantly or not0
Loans and
ADJANCE$ Deposits
6>>6=>D 280B ??0?
6>>D=>4 25 ?B02
6>>4=>2 4B0? B704
6>>2=>5 2705 ?B0>
6>>5=>8 2D06 ?802
6>>8=>? 26 ?>0>
6>>?=>B 270B B6
6>>B=>> 4B0B B606
6>>>=77 270D B606
D777=76 2708 B605
D776=7D 2D ?B05
D77D=74 2408 ?>0B
D774=
72O 25 B705
$)**ary for the
dependent
1ariable3

Jariable
Total no0 of
1al)es
No0 of
1al)es )sed
No0 of 1al)es
i,nored
$)* of
wei,hts !ean
$tandard
de1iation
Loans and
ADJANCE$ 64 64 7 64 260>46 D02>4
E1al)atin, the infor*ation bro),ht by the 1ariables -G7 P LP!oy-L..3
$o)rce D# $)* of s+)ares !ean s+)are
#isherQs
#
"r R
#
!odel 66 ?405BB 808>7 80BD8 70D>6
Resid)als 6 70>B7 70>B7
Total 6D ?2058B

CORRELATION
Three correlation coefficients are proposed to co*p)te the correlation between a set of
+)antitati1e 1ariables/ whether contin)o)s/ discrete or ordinal -in the latter case/ the
classes *)st be represented by 1al)es that respect the order.3
"earson correlation coefficient3 this coefficient corresponds to the classical linear
correlation coefficient0 This coefficient is well s)ited for contin)o)s data0 Its 1al)e ran,es
fro* =6 to 6/ and it *eas)re the de,ree of linear correlation between two 1ariables0 Note3
the s+)ared "earson correlation coefficient ,i1es an idea of how *)ch of the 1ariability
of a 1ariable is e:plained by the other 1ariable0 The p=1al)es that are co*p)ted for each
coefficient allow testin, the n)ll hypothesis that the coefficients are not si,nificantly
different fro* 70 Gowe1er/ one needs to be ca)tions when interpretin, these res)lts/ as if
two 1ariables are independent/ their correlation coefficient is @ero/ b)t the reciprocal is
not tr)e0
$pear*an correlation coefficient -rho.3 this coefficient is based on the ranks of the
obser1ations and not on their 1al)e0 This coefficient is adapted to ordinal data0 As for the
"earson correlation/ one can interpret this coefficient in ter*s of 1ariability e:plained/
b)t here we *ean the 1ariability of the ranks0
'endall correlation coefficient -ta).3 as for the $pear*an coefficient/ it is well s)ited for
ordinal 1ariables as it is also based on ranks0 Gowe1er/ this coefficient is concept)ally
1ery different0 It can be interpreted in ter*s of probability3 it is the difference between
the probabilities that the 1ariables 1ary in the sa*e direction and the probabilities that the
1ariables 1ary in the opposite direction0
C'!!3at"'# 5t6# Ea!#"#7s D EB/#ss '1 P$53"2 S2t'! Ba#?s
Lear Total
Earnin,s
Total
E:penses


6>55 6
7
6>?5 2
2
6>>7 2D
2D
6>>5 472
D>?
D777 6/62>
67??
D77D 6/567
64>5
D774 6/?D2
6554
D772
D/425
6B>5
Decision3
At the le1el of si,nificance AlphaP70757 the decision is to reject the n)ll hypothesis of
absence of correlation0 Res)lt of correlation is hi,h De,ree "ositi1e Correlation
In other words/ the correlation is si,nificant0
CONCLUSION AND RECOMMENDATION
"earsonQs correlation coefficient test -para*etric test.3
Obser1ed 1al)e 70>>8
Two=tailed p=1al)e T 707776
Alpha 7075
$ince the financial refor*s of 6>>6/ there ha1e been si,nificant fa1o)rable
chan,es in IndiaFs hi,hly re,)lated bankin, sector0 This st)dy has assessed
the i*pact of the refor*s by e:a*inin, se1en hypotheses0
It concl)des that the financial refor*s ha1e had a *oderately positi1e i*pact on
red)cin, the concentration of the bankin, sector -at the lower end. and i*pro1in,
perfor*ance0
The e*pirical esti*ation showed that re,)lation lowered the profitability and cost
efficiency of p)blic=sector banks at the initial sta,e of the refor*s/ b)t s)ch a
ne,ati1e i*pact disappeared once they adj)sted to the new en1iron*ent0
!oreo1er/ allowin, banks to en,a,e in non=traditional acti1ities has contrib)ted
to i*pro1ed profitability and cost and earnin,s efficiency of the whole bankin,
sector/ incl)din, p)blic=sector banks0
Lendin, to priority sectors and the p)blic=sector has not had a ne,ati1e effect on
profitability and cost efficiency/ contrary to o)r e:pectations0
#)rther/ forei,n banks -and pri1ate do*estic banks in so*e cases. ha1e ,enerally
perfor*ed better than other banks in ter*s of profitability and inco*e efficiency0
This s),,ests that ownership *atters and forei,n entry has a positi1e i*pact on
bankin, sector restr)ct)rin,0
A f)rther red)ction of $LR and *ore enco)ra,e*ent for non=traditional acti1ities
-)nder the bank s)bsidiary for*. *ay also *ake the bankin, sector *ore resilient
to 1ario)s ad1erse shocks0
#or the contin)o)s ,rowth of the Indian econo*y/ contin)ation of the bankin,
and financial refor*s will always be a critical iss)e0
It boosts in1est*ent and ,rowth thro),ho)t the econo*y0
The response of the banks to the refor*s has been i*pressi1e0 The banks ha1e
been adj)stin, 1ery well to the new en1iron*ent0
The le1el of N"A of p)blic sector banks re*ained hi,h; a noteworthy
de1elop*ent has been their si,nificant red)ction in relation to net ad1ances in
recent years0
LIMITATIONS OF THE STUDY
As we all know that e1ery work that has to be perfor*ed by so*eone incl)des so*e
h)rdles or says li*itation0 There are always so*e proble*s in each and e1ery work0 If
there were no proble*s the perfor*in, each task is so easy that e1eryone that does not
ha1e any knowled,e abo)t the can also perfor*s that work witho)t and h)rdle0
$o the followin, are the so*e li*itations or proble*s that are faced d)rin, the
dissertation report0
60 La2? '1 ?#'63%7:; abo)t cond)ctin, the research *akes it 1ery diffic)lt for
)s to perfor* o)t task0 As it was o)r first ti*e that we ind)l,e in dissertation
report0 The lack of e:perience *ade the task diffic)lt0
D0 S.'!ta7 '1 t"&:;As the ti*e period that is ,i1en to )s for doin, dissertation
st)dy was also too less0 In a short ti*e period that is 1ery diffic)lt that we can
,et the knowled,e abo)t each and e1erythin, related to o)r project0
40 S2'#%a!4 %ata:;I )sed secondary data in *y st)dy that is not a reliable
so)rce of infor*ation for doin, research work0
20 L"&"t% A!a:= The st)dy is restricted to the li*ited areas of search0
50 Nat$!:= The st)dy is s),,esti1e in nat)re and not *)ch concl)si1e0
80 U#a0a"3a5"3"t4 '1 "#1'!&at"'#:= $o*e of the infor*ation in banks is not to be
disclosed to any reso)rce of infor*ation0 E1en I was )nable to access that
infor*ation0
BIBLIOGRAPHY
BOOKS
C,R K't.a!"
-
: The infor*ation re,ardin, the basics of research and
research *ethodolo,y/ what are the different types of research desi,ns/
proble* state*ent/ so)rces of data collection and *ethods of data
collection are ,i1en in this section08
S,P G$/ta
:
: The infor*ation re,ardin, the statistical tools and their
li*itations in different fields the research is ,i1en in this section0 This
section e:plains/ why to )se correlation and the sit)ations in which
correlation can be )sed/ and *eanin, of correlation 0 This section also
e:plains the Trend Analysis Techni+)e00
S,C, G$/ta
8
: Infor*ation re,ardin, 1ario)s statistical < analytical tools is
,i1en in this section0
="3?"#s'# D B.a#%a!?a!
9
: In this section 1ario)s parts of research and
research *ethodolo,y is ,i1en which tells abo)t the techni+)es of doin,
research0
T!"/at." P,C
*
: this book helped *e in knowin, abo)t the chan,e0
G$/ta C,B,=
?,
H!ana,e*ent theory and practice(3 this book
helped *e in findin, the factors affectin, the or,ani@ationFs chan,e0
<OURNALS
F"#a#2 I#%"a
*9
, S/t&5! ())9 //;G9H;G:*:; I*pact of N"As on strate,ic
bankin, 1ariables i0e0 i*pact on profitability/ "rod)cti1ity/ Capital Ade+)acy/
Credit Deploy*ent and !obilisation0
C.a!t!% F"#a#2"a3 A#a34s"s
*H
, D2&5! ())9 //;9(3= Concept of $AR#AE$I
Act0
S'$t.!# E2'#'&"st
()
, F5!$a!4 ()): //;*93= Details of Corporate Debt
Restr)ct)rin, $che*e0
Ma#a7&#t A22'$#ta#t
(-
, Ma4 ()): //; 89G:; Early Earnin, $yste*
C.a!t!% F"#a#2"a3 A#a34s"s
(G
, O2t'5! ())9 //;:-

3=Types of bankin, risk
C.a!t!% F"#a#2"a3 A#a34s"s
8(
, O2t'5! ())H //;8*;8*3=9rowth and str)ct)ral
chan,e in bankin, sector
C.a!t!% F"#a#2"a3 A#a34s"s
8-
, N'0&5! ())H //;I;G3=Concept of
&orrowerFs $pecial In1esti,ation A)dits
E2'#'&"2 a#% /'3"t"2a3 6?348), O2t'5! *:, ())- //;*)3=!eanin, and
concept of financial refor*s0
C.a!t!% S2!ta!4
(-
, F5$!a!4 ())8, V,S,Dat4 //;((;(-

:; I*portance of
credit ratin,
T!as$!4 Ma#a7&#t , D2&5! ())-, MPM V"#a4 K$&a! //;*-;*:
*)
:;
Ad1erse effect of #inancial nor*s0
C.a!t!% F"#a#2"a3 A#a34s"s, A$7$st ())-, B,P,D.a?a //;-H;9(
**
:; Reason
behind h),e le1el of N"As in the Indian &ankin, $yste*
Pa!a%"7&, <$34 ())9 //;*(;*-
*(
:; Indian econo*y and &ankin,
Ma#a7&#t A22'$#ta#t, S/t&5! ())H //;-I;9)
*8
:; Acco)nts which need
not be classified as N"As
B$s"#ss T'%a4, Ma4 ()): //;8-
*-
:; !eas)res in case of non pay*ent of N"As
C.a!t!% F"#a#2"a3 A#a34s"s;
(G
, D2&5! ())9 //;(9;(I

:; Nor*s for treatin,
1ario)s ad1ances as N"As
F"#a#2"a3 R"s? Ma#a7&#t, F5!$a!4 ()): //;9);99:; Narsi*han
Co**itteeFs reco**endation
Data A$st
89
, A/!"3 ())9 //;*G

9ross N"As e:pressed as C of ,ross ad1ances
RBI B$33t"#, <$34 *GGG //;8-;8:

:; R&I ,)idelines on inco*e ,eneration
IBA B$33t"#, <a#$a!4 ())- //;*H;*G:; !a,nit)de of ,ross N"As post and prior
to the refor*s0
C.a!t!% F"#a#2"a3 A#a34s"s, F5!$a!4 ())- //;*(;*-
)
3=U)alitati1e aspects
of the *icro le1el i*pact of refor*s0