You are on page 1of 12

Amity College of

Commerce and

Emerging Challenges in Indian Bank.

Submitted to: Submitted by:-

Preeti garg


(Nominated faculty)
(Hons.) 2013-2016


I, Akshit Chauhan, hereby declare that the Term Paper Report titled
Emerging Challenges in Indian Banks that I have submitted is original. I
was in regular contact with the nominated faculty and contacted her for
discussing the project.

Date of Project submission: - 2nd Feb, 2015

Signature of Student


Faculty Comments
Signature of Faculty




Management is a profession wherein no work can be accomplished without the help

and assistance of a large number of people, be it your supervisors or subordinates. A
good manager is one who knows how to get the work accomplished with the help of his
colleagues. As future managers, we are taught to practice such behavior at every step.
This project is also a part of it.
I would like to thank Amity College of Commerce and Finance for providing me with this
great opportunity to work on this report and choosing my own topic of interest.
Further I would also like to thank everyone in my department with whom I have come in
contact during the preparation of this report.

I wish to express my sincere gratitude to

DR Preeti Garg
for her extended support during the study and preparation of the report. All have been
profoundly instrumental in making the project undertaken, the source of knowledge
providing all the support and necessary guidance.


1. Introduction
2. Review paper 1
3. Review paper 2
4. Review paper 3
5. References

Objective of my project

The objective of my project is to know about the challenges faced by the

Indian banks. As I am keenly interested in banking sector. As after
completing my studies, I wat to do job in bank. So that is the reason I choose
this topic, as there is a great scope in this field.


Indian saving money is at cross streets today. Treat as it may sound, this
characterization is maybe, more legitimate today then even in the recent past. The
keeping money area constitutes the center of the Indian monetary framework, which
has been liable to extensive changes. Budgetary part changes system is as of now in
progress in perspective of the way that money related intermediation is an imperative
variable helping both to adjustment and financial development -and advancement.
As you are mindful, worldwide monetary prospects turned strongly unfavorable since
September 2001 after the terrorist assaults on the US. The potential outcomes of a
recuperation in the worldwide economy have ended up very indeterminate, belying the
beginning desires of a V-formed recuperation and also the resulting any expectations of
a U-molded recuperation.

Notwithstanding the generally internal looking nature of the Indian economy, it can't
stay protected from these global advancements. The direct impacts of these
outer advancements on our saving money framework are relied upon to be constrained.
particularly through fares and curbed mechanical action could, notwithstanding, effect

the advantage nature of our saving money framework and different sections of the
need to continually screen worldwide advancements and take fitting and frequently,
preemptive activity add an altogether new measurement to the advancement of our
saving money framework towards its more extended term vision.

Review paper 1

Indian Banking and Finance Managing New Challenges

(AUTHOR: Bimal Jalan)

1. As you are mindful, worldwide monetary prospects turned strongly

unfriendly since September 2001 after the terrorist assaults on the US.
The potential outcomes of a recuperation in the worldwide economy
have ended up very questionable, belying the beginning desires of avformed recuperation and in addition the ensuing any expectations of a
U-molded recuperation. As of now,the agreement of gauges settles
around 2.4 every penny for world GDP development for 2001. World
exchange volume development could ease off to around 1.3 every
penny and net capital outpourings from creating nations might now be
bigger than expected prior. Despite the fact that the sharp spurt in
universal oil costs has decreased, their future conduct remains misty.
Macroeconomic shortcomings have additionally been connected with a
disintegration of business certainty. Protection, aerial transports,
tourism and lodging commercial enterprises have been hit hard what's
more the introduction of budgetary establishments to these
commercial ventures can be a potential wellspring of powerlessness.
Late Macroeconomic Developments and the Banking System For a
larger piece of the twentieth century, the part of the money related
framework was seen as preparing the huge asset necessities for
development. Since the 1970s furthermore 1980s, advancement
financial matters experienced an ideal model transformation. The
monetary framework is no more saw as a latent mobiliser of trusts.
Effectiveness in money related intermediation i.e., the capacity of

budgetary organizations to middle in the middle of savers and

speculators, to set monetary costs for capital and to allot assets
among contending requests is presently underscored. Advancements
in endogenous development hypothesis since the late 1980s show that
effectiveness in monetary intermediation is a wellspring of specialized
advancement to be abused for creating expanding returns and
maintaining high development. These progressions have given the
reason to numerous creating nations to attempt far reaching changes
of their budgetary frameworks to set them up for their actual asset
designation capacity. As vital money related middle people, banks have
an extraordinary part to play in this new administration. The sharp
downturn in worldwide macroeconomic prospects and the proceeding
laziness in residential modern movement have required a correction in
the figure for India's genuine GDP development in 2001-02 from 6.06.5 every penny expected at the time of the April 2001 Monetary and
Credit Policy Statement to 5.0-6.0 every penny in the mid-term audit of
the arrangement. The descending amendment is principally predicated
on the viewpoint for the modern segment which developed by scarcely
2.2 every penny in April-October 2001 as against .9 every penny in the
relating time of a year ago, basically by virtue of the log jam in
assembling and mining and quarrying. Capital merchandise generation
declined by as much as 6.6 every penny and a few parts recorded a
back off in development rate or an total decay. Then again, horticulture
division, backed by sensible storm, recorded a bounce back in
development. The kharif yield is relied upon to cross another top of
105.6 million tons and prospects for the rabicrop are additionally great.
On the outside front, stock fares expanded barely by 0.5 every penny
in the initial eight months of 2001-02. While oil imports fell by 13.4
every penny, the non-oil imports indicated an increment of 8.4 every
penny. In spite of a moderate broadening of the exchange deficiency,
proceeding lightness in net undetectable receipts has kept the current
record deficiency low. As indicated by accessible information, net
capital streams are likewise liable to be of a higher request than in the
former year. Outside trade holds rose to US $ 48.0 billion as on
December 28, 2001 recording a growth of the request of the US $ 5.8
billion over the end-March 2001 level.

Review paper 2
Emerging Challenges in Indian Banking
(AUTHOR: Dr. Mohan S. RODE).

To keep up high service quality, banks need to come closer to their clients to screen and
to respond to the pace of progress in their needs and desires what's more devise
successful approaches to meet or surpass them. Consequently, to discover the
administrations given by the bank which in turns helps the bank to enhance and the
bank can give the client's the best administrations. The Peak Performance projects
will demonstrate to you and your group how to attain to the way of life change, as well
as additionally the steps to take in place to turn into an association which values and
displays "Clients Service Excellence". Administration quality. To keep up high service
quality, banks need to come closer to their clients to screen and to respond to the
pace of progress in their needs and desires also devise viable approaches to meet or
surpass them. In this manner, keeping in mind the end goal to discover the
administrations given by the bank which in turns helps the bank to enhance and the
bank can give the client's the best administrations. The Peak Performance projects
will reveal to you and your group how to accomplish the way of life change, as well as
likewise the steps to take in place to turn into an association which values and shows
"Clients Service Excellence".
Banks now a day's arrangement to lay more prominent weight on shopper saving
money in the impending years, with a perspective to attain to higher business sector
infiltration and productivity. Innovation has cleared way for extending the skyline of
shopper saving money and has tidied up the said business of keeping money. In the
pre-liberalization days, keeping money was co sneered as a task you might want
to complete off as fast as could be allowed. Today, the situation is entirely unexpected.
Banks determined by the ever- developing rivalry have ad lobbed on existing gimmicks
and made new offices that are more clients friendly . Developing Indian white collar
class today has a disposable surplus pay and seeks for a superior way of life. The
occupied business official needs money at at whatever time, at all spots and is eager to
pay additional for this administration. .New type of monetary administrations brand viz.
Accommodation saving money, anyplace managing an account, tell - saving money,

branchless saving money and on - line saving money have showed up on the managing
an account scene. The majority of the private and remote banks have connected up
their limbs empowering a client to work his record
All the private banks are giving different administrations to their accountholders. They
have diverse administration charges and distinctive sorts of records to coddle the needs
of their clients. Regularly, customer will expects more elevated amount of
administrations from bank's staff, since they are paying for that. The explanation behind
selecting this theme is subsequently to look at the rate of all the distinctive level
administration gave in the bank, to offer proposal to progress the administration level to
keep up records of client with same banks. Not to redirect their record to other bank.
Furthermore to welcome proposal from client to enhance client administration
&customer cordial air. This helps the bank to keep up also to expand the quantity of
records in their bank. This can be conceivable just when changes in their items in
request to contend even with other complex private bank.

Review paper 3
Indian Banking Sector: Challenges and Opportunities
(AUTHOR: kV Kamath)

The greatest open door for the Indian keeping money framework today is the Indian consummer. Demographic moves regarding wage levels and social moves as far as way of life
yearnings are changing the profile of the Indian customer. This is and will be a key driver of
financial development going ahead.
The Indian managing an account part is at an energizing point in its development. The
opportune- binds are huge to enter new organizations and new markets, to create better
approaches for working, to im- demonstrate productivity, and to convey more elevated amounts
of client administration.

Gradualism, which was the sign of the Indian change procedure, was in- deed the result of the
fair country where well known accord is significant..That India did not get the "Asian
influenza" which distressed the South East Asian economies in the nineties can be to a great
extent ascribed to the effective usage of prudent- tail standards in the money related segment.
Banks will go under expanding weight to enhance their income streams. Since capital business
contends with the keeping money framework nearly, which generally is termed as
"disintermediation," the criticalness of bank giving could be required to decay.
A refinement between business banks as genius viders of working capital money and monetary
foundations as loan specialists of term-account has disappeared and both sorts of go-betweens
have res- pounded to the change by creating focused bundles of budgetary administrations
covering long- term venture financing, fleeting working capital credits alongside resource based
financing, prepare men renting, and expense based administrations.
Electronic managing an account serve- frosts, whether conveyed online or through different
components, have spread rapidly as of late... The risk of new participants has driven numerous
banks to offer e-account running from fundamental to completely integrand web administrations.
This pattern appears to have quickened in India too.
Significantly in the wake of preparing peon- plea with the most recent know- ledge, the results
won't begin streaming unless they are enabled to convey the vision of the organization. The
vision of the association ought to be energizing to the representatives and a source to unleash
their potential.
The fate of any organization relies on the efficiency and viability of its man administration
policies. A straightforward management with a high degree of corporate representance can alone
spur the workforce to continue performing at the most abnormal amounts of effectiveness over a
long peritonea last few years have seen numerous essential changes clearing through the Indian
retail keeping money area. Rather than just financing "profitable" pur- postures, Indian banks
have taken up subsidizing individual utilization in a huge manner to meet buyer de- mand


Accordingly, managing an account in the days to come will be a testing one,

which will be checked by elevated standards of clients, who are decently
educated and have the specialized information to direct saving money
exchange from home or office or while on move. Despite the fact that IT
assumes a vital part in keeping money business, yet customized
administration will keep on having pertinence in Indian managing an account
where a huge extent of the nation's populace is still uneducated. To total
up, it can be said that with expanded rivalry, Indian banks confront the test
of sustenance and for these they have to create proactive procedures with
spotlight on item advancement, reeling sheet exercises to expand their wage
from non-center movement, productivity in administration conveyance
process, powerful hazard administration and so forth and all the more
significantly on consumer loyalty through tailor- made item bundles. Also,
rivalry ought not so much be seen with anxiety. Actually it ought to be seen
by Indian banks as a chance to enter worldwide budgetary intermediation
and procurement of monetary administrations (Patel, 1997). As the financial
vitality of (money related) administrations increments regarding (worldwide)
worth included, global managing an account operations ought to be seen as
a (conceivably) lucrative benefit opportunity by Indian bank.


1. Indian Banking and Finance Managing New Challenges

(AUTHOR: Bimal Jalan)

2. Emerging Challenges in Indian Banking

(AUTHOR: Dr. Mohan S. RODE).

3. Indian Banking Sector: Challenges and Opportunities

(AUTHOR: kV Kamath)