scholarly journals Banking Sector Reforms: Policy Implications and Fresh Outlook

2011 ◽  
Vol 2 (2) ◽  
pp. 55-64
Author(s):  
R. K. Uppal
Keyword(s):  
Public Sector ◽  
Banking Sector ◽  
Banking Industry ◽  
Banking System ◽  
Policy Implications ◽  
Foreign Banks ◽  
Public Sector Banks ◽  
Global Challenges ◽  
The Future ◽  
Global Banks

Various reform measures introduced in India have indeed strengthened the Indian banking system in preparation for the fresh global challenges ahead. The present paper reviews the banking sector reforms policy, crucial issues and agenda for the future. On the basis of certain parameters, like productivity, profitability and NPAs’ management, the paper concludes that foreign banks and new private sector banks are much better in performance as compared to our nationalized banks in the post-banking sector reforms period. The paper ends with the future agenda for the Indian banking industry, particularly for public sector banks to make them efficient and strong, to compete with the global banks.

scholarly journals Reforms, Productivity, and Efficiency in Banking: The Indian Experience (Distinguished Lecture)

2005 ◽  
Vol 44 (4I) ◽  
pp. 505-538 ◽  
Author(s):  
Rakesh Mohan
Keyword(s):  
Public Sector ◽  
Banking Sector ◽  
Banking System ◽  
Peer Pressure ◽  
Market Discipline ◽  
Foreign Banks ◽  
Public Sector Banks ◽  
Reform Period ◽  
Indian Banks ◽  
Interest Expense

India embarked on a strategy of economic reforms in the wake of a serious balance-ofpayments crisis in 1991. A central plank of the reforms was reform in the financial sector and, with banks being the mainstay of financial intermediation, the banking sector. The objective of the banking sector reforms was to promote a diversified, efficient and competitive financial system with the ultimate objective of improving the allocative efficiency of resources through operational flexibility, improved financial viability and institutional strengthening. Beginning from 1992, Indian banks were gradually exposed to greater domestic and international competition. India’s approach to banking reforms has been somewhat different from many other countries. Whereas there has not been privatisation of public sector banks, through a process of partial disinvestment a number of public sector banks have been listed in Stock Exchanges and have become subject to market discipline and greater transparency in this manner. Besides, newly opened banks from the private sector and entry and expansion of several foreign banks resulted in greater competition. Consequent to these developments, there has been a consistent decline in the share of public sector banks in total assets of commercial banks and a declining trend of Herfindahl’s concentration index. Improvements in efficiency of the banking system were reflected in a number of indicators, such as, a gradual reduction in cost of intermediation (defined as the ratio of operating expense to total assets) in the post reform period across various bank groups (barring foreign banks), and decline in the non-performing loans. As a result of these changes, there has been an all-around productivity improvement in the Indian banking sector. While the cost income-ratio (i.e., the ratio of operating expenses to total income less interest expense) as well as net interest margin (i.e., the excess of interest income over interest expense, scaled by total bank assets) of Indian banks showed a declining trend during the post-reform period, the business per employee of Indian banks increased over three-fold in real terms exhibiting an annual compound growth rate of nearly 9 percent. At the same time, the profit per employee increased more than five-fold, implying a compound growth of around 17 percent. Branch productivity also recorded concomitant improvements. Such productivity improvements in the banking sector could be driven by two factors: technological improvements, which expands the range of production possibilities and a catching up effect, as peer pressure amongst banks compels them to raise productivity levels. As far as the future of Indian banking is concerned, a number of issues, such as the credit to small and medium enterprises, customers’ interests and financial inclusion, reducing procedural formalities, listing of the public sector banks in the stock exchange and related market discipline are of paramount importance.

scholarly journals E-Age Technology–New Face of Indian Banking Industry: Emerging Challenges and New Potentials

2011 ◽  
Vol 1 (3) ◽  
pp. 115-129 ◽  
Author(s):  
R. K. Uppal
Keyword(s):  
Public Sector ◽  
Human Resource Development ◽  
Banking Sector ◽  
Banking Industry ◽  
Foreign Banks ◽  
Work Culture ◽  
The Public ◽  
Public Sector Banks ◽  
Banking Structure ◽  
Process Work

The present paper analyzes the performance of major banks in terms of productivity and profitability in the pre and post e-banking period. Under the regime of banking sector reforms, IT Act of 1999 gave new dimensions to the Indian banking sector. IT has created transformation in banking structure, business process, work culture and human resource development. It has affected the productivity, profitability and efficiency of the banks to a large extent. The paper concludes that performance of all the banks under study is much better in post-e-banking period and further foreign banks are at the top position, whereas the performance of the public sector banks is comparatively very poor. The paper suggests some measures to tackle the challenges faced by the banks particularly public sector banks. At the end, paper suggests how public sector banks can convert the emerging challenges into opportunities.

EMERGING TRENDS IN BANKING SECTOR - ITS CHALLENGES AND OPPORTUNITIES

2018 ◽  
Vol 6 (26) ◽  
Author(s):  
Karigoleshwar .
Keyword(s):  
Banking Sector ◽  
Banking Industry ◽  
Banking System ◽  
Major Change ◽  
Commercial Banking ◽  
Foreign Banks ◽  
Emerging Trends ◽  
Reserve Bank ◽  
Challenges And Opportunities ◽  
Multiple Regions

In financial sector the banking industry is the largest player, has also been undergoing a major change. Today the banking industry is stronger and capable of withstanding the pressures of competition. Today, we are having a fairly well developed banking system with different classes of banks – public sector banks, foreign banks, private sector banks – both old and new generation, regional rural banks and co-operative banks with the Reserve Bank of India as the fountain Head of the system. In the banking field, there has been an unprecedented growth and diversification of banking industry has been so stupendous that it has no parallel in the annals of banking anywhere in the world. The banking industry has experienced a series of significant transformations in the last few decades. Among the most important of them is the change in the type of organizations that dominate the landscape. Since the eighties, banks have increased the scope and scale of their activities and several banks have become very large institutions with a presence in multiple regions of the country.' The paper examines the new trends in commercial banking. The present era the cashless transactions, E-cheques, mobile wallets. The paper attempts to present the emerging trends and its challenges that recently emerged in the banking sector with special emphasis on digitization. It will be useful to the academicians, banking and insurance personnel, students and researchers. Common readers also know the latest innovations in banking sector

scholarly journals Customer Engagement with Social Media Bank Pages with Reference to Facebook

2019 ◽  
Vol 8 (2S11) ◽  
pp. 3089-3095
Keyword(s):  
Social Media ◽  
Public Sector ◽  
Private Sector ◽  
Banking Sector ◽  
Banking System ◽  
Customer Engagement ◽  
Public And Private ◽  
Public Sector Banks ◽  
Social Media Platforms ◽  
Public And Private Sector

Indian banking sector is going through a massive transformation day by day with the advancement of Information and communication Technology and impact of digitization in the banking industry. After the core banking system, banks have moved further to reap the benefits of internet and mobile banking. In order to engage more customers anywhere and anytime without visiting the brick and mortar branches, the banks have now introduced the social media banking. Most of the people are already active in different social media platforms, so banks have grabbed that opportunity to reach people easily and provide services through social media. This paper has made an attempt to analyze the engagement of social media customers in different banks including public and private sector with reference to facebook bank page. The results show that most of the banks have presence on popular social media platforms. With respect to the engagement of customer to all facebook posts during the study period, public sector banks are posting more on their respective facebook page but the customers’ likes as well as dislikes are more for SBI, ICICI and AXIS. In case of shares and comments, SBI and PNB have more and are increasing continuously as these two banks post more on their respective facebook pages. But with respect to customer engagement per facebook post during the study period, customers are engaged more with private sector banks. And it can be said that regarding overall customer engagement people are more engaged with private sector over public sector banks.

Analysis of Banking Industry by Using Camel Model with Special Emphasis on Selected Indian Public Sector Banks

2016 ◽  
Vol 11 (02) ◽  
Author(s):  
Mamta Shah ◽  
Mahua Dutta
Keyword(s):  
Public Sector ◽  
Banking Sector ◽  
Banking Industry ◽  
Financial Sector ◽  
High Rate ◽  
Public Sector Banks ◽  
The Face ◽  
Growing Economy ◽  
Domestic Inflation ◽  
Model Approach

India is among the fastest growing economy in the world. The growth of any economy is largely depending on its financial sector. One of the components of financial sector is the banking sector. The growth of banking industry plays a major role in the development of that economy. If we go to past we can see that over the couple of years the Indian Banking sector has shown a high rate of buoyancy in the face of high domestic inflation, rupee depreciation, and due to fiscal uncertainty. Even our central bank has adopted various measures to stimulate growth and overall development of the sector. The present paper discuss the analysis of banking industry specially our public sector banks by using CAMEL model approach.

Decoding the Paradox of Dividend Policy: An Empirical Study on Indian Banking Sector

2018 ◽  
Vol 4 (2) ◽  
pp. 113-128
Author(s):  
B. Chandra Mohan Patnaik ◽  
Chandrabhanu Das
Keyword(s):  
Public Sector ◽  
Dividend Policy ◽  
Banking Sector ◽  
Banking Industry ◽  
Liquidity Constraints ◽  
Managerial Efficiency ◽  
Public Sector Banks ◽  
Dividend Payments ◽  
The Government ◽  
High Level

The dividend policy has often been treated as the most complicated and intriguing aspects in corporate finance. Profitability was always cited as the main source of confidence for dividend payments. Numerous articles written on the dividend policy explored several of its other determinants. The most popular Lintner’s Dividend Model has been assessed and applied by researchers in different sectors including the banking sector in India. The results from the banking sector also confirmed to a greater extent the accuracy of Lintner’s Dividend Model. Although Lintner’s Dividend Model had its firm footing in the Indian banking industry, the model has not much explored about liquidity constraints, ownership and managerial efficiency. The above-mentioned predictors are important in the present scenario where many public sector banks paid dividends while having high nonperforming assets. Recently the government has announced a dividend cut for 16 public sector banks due to high level of stressed assets. Hence, profitability and stressed assets are the paradoxical aspects in the dividend policy for the banking industry. Findings from this study have evidence of substantial influence of liquidity constraints, ownership and managerial efficiency and their influence on the dividend policy.

scholarly journals Digital Finance and the Future of Nigerian Banking System: A Review

2020 ◽  
Vol 6 (16) ◽  
pp. 24-35
Author(s):  
Gbenga F. Babarinde ◽  
◽  
Matthew O. Gidigbi ◽  
Julius T. Ndaghu ◽  
Idera T. Abdulmajeed ◽  
...  
Keyword(s):  
Financial Services ◽  
Banking Sector ◽  
Banking Industry ◽  
Banking System ◽  
Financial Service ◽  
Digital World ◽  
Services Delivery ◽  
The Future ◽  
The Impact ◽  
Nigerian Banking

Digital finance is a type of financial service that employs digital products like personal computers, the internet, mobile phones, cards linked to a digital payment system. Innovations in the digital world cannot be divorced from Nigerian financial services most notably the banking sector. Therefore, it means that banking industry cannot but embrace digital innovations in their services delivery. Hence, there is a need to review the impact of digital finance in the Nigerian banking sector. Desk research method was used to examine how innovations in the digital world could impact the future financial service delivery in the Nigerian banking sector. From the review, it was that the digital world is quickly changing and this impacts banking in all ramification. It is recommended that the banking industry should try to keep pace with the digital innovations, for them to be able to meet up the demands of their digitally-savvy customers.

scholarly journals Excellency in banking services - A new road map for banks in the emerging new competition

2011 ◽  
Vol 1 (1) ◽  
pp. 32-40 ◽  
Author(s):  
R. K. Uppal
Keyword(s):  
Public Sector ◽  
Private Sector ◽  
Banking Sector ◽  
Quality Parameters ◽  
Foreign Banks ◽  
Survey Study ◽  
Banking Services ◽  
Empirical Survey ◽  
Public Sector Banks ◽  
Road Map

The widening gap between desirability and availability is becoming a major cause of dissatisfaction in the banking industry. The bridging of this gap is one of the solutions to make the customers delight. The present study analyzes the widening gap between desirability and availability regarding reliability, accuracy, confidentiality, flexibility, e-channels, high attention to customers, low service charges and overall satisfaction of customers in three bank groups i.e. public sector banks, Indian private sector banks and foreign banks. The survey was conducted in Chandigarh in the month of October, 2008. Three banks have been selected one each from three bank groups; PNB from public sector banks, HDFC bank from Indian Private Sector banks and Amro bank from foreign banks have been taken for consideration. On the basis of five point Likert type scale, survey concludes that desirability regarding all the parameters is very high as compared to availability of banking services and on the basis of this empirical survey, study recommends some measures to bridge this gap between the D/A of service quality parameters in the banking sector in the emerging competition.

Assessing the Inter Bank Disparity in Non-Performing Assets (NPAs) Management in Indian Public Sector Banks

GIS Business ◽  
2017 ◽  
Vol 12 (5) ◽  
pp. 49-59
Author(s):  
Dhananjaya K. ◽  
Krishna Raj
Keyword(s):  
Public Sector ◽  
Financial Stability ◽  
Banking Sector ◽  
Global Financial Crisis ◽  
Banking System ◽  
Financial System ◽  
Public Sector Banks ◽  
Recovery Mechanisms ◽  
The Stability ◽  
The Global Financial Crisis

In a bank-dominated financial system like India, the strength of the overall financial system or financial stability highly depends on the soundness of banks. Indian Banking system proved to be strong and resilient during the global financial crisis of 2008. But of late, there has been increased concerns about the continued deterioration in the stability of the banking sector. Financial stability report of RBI confesses to the fact that the risks to Indian banking sector have been increasing in the post-recession period particularly the risk of accumulating NPAs. This study attempts to analyse the trend in profitability, NPAs, and the effectiveness of recovery mechanisms and interbank disparity in NPA management with respect to public sector banks. We found that the profitability of public sector banks is declining in the post-crisis period and the amount of NPA has been on the rise. Further, the recovery mechanisms have proved to be ineffective in containing the problem of bad debts.

scholarly journals Macroeconomic and Bank Specific Determinants of Non-Performing Loans (NPLs) in the Indian Banking Sector

2017 ◽  
Vol 12 (2) ◽  
pp. 125-135
Author(s):  
Laila Memdani
Keyword(s):  
Public Sector ◽  
Fixed Effects ◽  
Banking Sector ◽  
Foreign Banks ◽  
Fixed Effects Model ◽  
Ownership Structures ◽  
Public Sector Banks ◽  
Reserve Bank ◽  
Private Banks ◽  
Econometric Technique

Abstract The main objective of the paper is to find out the determinants of NPAs in the Indian Banking sector and to study if these determinants vary across the three different ownership structures viz., public sector banks (PSBs), private banks (PBs) and foreign banks (FBs), of banks in India. The panel data for all the banks from 2005 to 2014 is collected from the official website of Reserve Bank of India (RBI), the Central Bank of the country. The econometric technique of Fixed Effects model and Random Effects model is used for the purpose. The results reveal that Macro economic factors, like log of percapita income (LPCY) and Inflation (INFN), are significantly affecting NPLs in Public Sector Banks (PSBs). In case of private banks (PBs) LPCY is highly significant while bank specific variables like size and total loans to total loans of the banking sector (TLTLBS) are significant at 10% level. For FBs none of the variables were significant.

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