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Studying Banking Sector

Content
Introduction
Overview of Banking Industry
Market Segmentation
Budget 2008-09 and Bank
Products and participants
Evolving role of the Reserve Bank of India – recent developments
Introduction
Banking in India can be categorized into non scheduled and scheduled banks. Scheduled banks constitutes of commercial banks and co operative banks. There are about 67,000 branches of scheduled banks spread across India. During the first phase of financial reforms there was nationalization of 14 banks in 1969 .This crucial step lead to a shift of class banking to mass banking .Banking industry is in the transition phase it is considered as fairly mature in terms of supply, product range and reach-even though reach in rural India still remains a challenge for the private sector and foreign banks. Even in terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets-as compared to other banks in comparable economies in its region. Public sector bank which constitute 78 percent of the total banking assets ,but the private sector bank are making an immense progress they are leaders in mobile ,internet and phone banking. The Public Sector Banks (PSBs), which are the base of the Banking sector in India account for more than 78 per cent of the total banking industry assets. Unfortunately they are burdened with excessive Non Performing assets (NPAs), massive manpower and lack of modern technology. On the other hand the Private Sector Banks are making tremendous progress. They are leaders in Internet banking, mobile banking, phone banking, ATMs. As far as foreign banks are concerned they are likely to succeed in the Indian Banking Industry.
The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The growth in the Indian Banking Industry has been more qualitative than quantitative and it is expected to remain the same...