An abstract on

Indian Banking System

Authored by: Nikhil Shah1 (nbs1989@gmail.com)

India being the largest country in South Asia is also one of the fastest growing economies
in the world. It is now Asia’s third largest economy and has made its way into the global
top 10 in terms of GDP. This is because the banking sector has played a major role in the
good show of the economy.

The Indian banking sector can be broadly categorized into nationalized (government
owned), private banks and specialized banking institutions. India’s central bank Reserve
Bank of India (RBI) plays a balancing game in the monetary management of the
economy. The RBI is a centralized body monitoring any discrepancies and shortcoming
in the system.

The Indian banking system has come a long way since independence from
Nationalization to liberalization. It has witnessed from a slow business institution to a
highly proactive and dynamic entity. This transformation has been largely brought about
by the large dose of liberalization and economic reforms that allowed banks to explore
new business opportunities rather than generating revenues from conventional streams
(i.e. borrowing and lending).

Indian banking is constantly trying to achieve international benchmarks with best

practices. The demarcation between the private and public sector is fast hazing as all the
banks are improving their efficiency and adapting new technologies. As Indian banks are
venturing on global expansion and many foreign banks are looking at India, the banking
system is all set to further evolve to a higher level

To compete nationally and globally banks and financial institutions have to pull up their
socks, they have to financially strong and deliver quality service. Therefore this paper
tries to provide the framework to analyze the financial condition and performance of
banks and financial institutions to guide them in venturing further.

Keywords: Banking, Financial Institutions

1
MBA, MATS Institute of Management and Entrepreneurship, Bangalore-78