CHAPTER-1 "DEVELOPMENT OF THE BANKING INDUSTRY"

1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9

Emergence of Banking Industry Historical Perspective of Bank: Global Scenario Historical Perspective of Bank: Indian Scenario Structure of Indian Money Market Emergence of State Bank of India Challenges of Indian Banking Sector Achievements of Indian Banks Future Banking Indian Banks: Going Innovative Historical Perspective: State Bank of India and Other Banks Trends and Progress Profile of State Bank of India and Other Banks

1.11

1.12 Refences

1 .1

E e g n e o B n in In u y: mr e c f a k g d str

E o tio o b n in b sin ss tra e to th b rte sy mo v lu n f a k g u e cd e a r ste f th h m n c ilisa n In th b g n g o th h m n e u a iv tio . e e in in f e u a c ilisa n m n y w s n t in e iste c . T e re u m n o iv tio o e a o x n e h q ire e ts f th c m o itie a d se ic s w re fu e o md s n rv e e lfille th u h b rte d ro g a r sy m It's im o le fo a p rso top d c a th se th g ste . p ssib r e n ro u e ll o in s a d se ic s, w ic h re u s fo h c n m tio , a h n rv e h h e q ire r is o su p n s is a titu e a d a ility a n t v rsa . E e if, e e p rso in p d n b re o e tile v n v ry e n th c m u ity g d w v rsa e o mn ifte ith e tility it w u b a v b , o ld e d isa le fo h r im to e g g th re u e in p d c n o th n a e e so rc s ro u tio f e c m o itie o se ic s m re th n o e re u m n a d to o m d s r rv e o a n 's q ire e t n e c a g o b rte th su lu a o n o c m o itie o x h n e r a r e rp s m u t f o m d s r se ic s sop d c da a st th se rv e ro u e g in o c m o itie o se ic s w ic w re p d c d b o e a d o m d s r rv e h h e ro u e y th rs n w ren e e e edd b h . y im B t th b rte sy msu re fro m n sh rtc m g lik : u is a r ste ffe d m a y o o in s e L c o u it o a c u t ak f n f con L c o d u le c in id n eo w n a k f o b o c e c f a ts L c o m d mo e c a g a k f e iu f x h n e L c o e ie t sto o v lu a k f ffic n re f a e

F r o e o in th a o e e tio e sh rtc m g m n y o v rc m g e b v -m n n d o o in s, o e w s in e te a dp t in p c e a v n d n u to ra tic . Mn a o g th m st sig ific n a d u fu in e tio s e e a mn e o n a t n se l v n n v r m k s m n y In e tio o m n y is a m ltifo b ssin to a e o e . vn n f o e u ld le g m n in . It is a sig ific n a d e n l fa to fo th ak d n a t n sse tia c r r e d v lo m n o a y e o o y M n y fu c n a th e e p e t f n c n m. o e n tio s s e g n ra a c p d m d mo e c a g fo g o s, se ic s, e e lly c e te e iu f x h n e r o d rv e a ts a d re a m n o d b M n y is th c n a u d sse n p y e t f e ts. o e e e tre ro n w ic h h sc le a . a ll a tiv s c itie c ste d lu re a s mn y oe is th e o e c n e ie t n o vn n m a s o m a rin h m nm tiv s o a la e e n f e su g u a o e n rg

1 S ssin th fa t th t a o a e o o ic a tiv s a p se t tre g e c a lm st ll c n m c itie t re n tim a m n y rie te . P o sta d th t " m d rn w rld e re o e -o n d ig u te a in o e o 'in u ' is c se e fo e inag rm n o m n y d stry lo ly n ld d a e t f o e ." 2 M n y a c th m rk t b t d e n t p y a p d c e ro o e ffe ts e a e u o s o la ro u tiv le itse F a c l in tio s p y th ro o b g g th g p lf. in n ia stitu n la e le f rid in e a b tw e th sew oh v sa in s a dth sew on e it. e en o h ae v g n o h ed B n is o e o th m st sig ific n fin n ia in tio w ic ak n f e o n a t a c l stitu n h h c m a d la e fin n ia re u e a d p y a v l ro in o m n s rg a c l so rc s n la ita le sh p g th e o o y o a y c u try b ju ic u d p y g a in e c n m f n o n y d io sly e lo in th ir fu d fo a tiv s a w u le d to a o e ll e o o ic e n s r c itie s o ld a n v ra c n m g w . ro th

1.2

H r a P r e tiv isto ic l e sp c e

o Bn f ak

: G bl lo a

S e a io cnr :
B n in inits m st n iv fo , is a o a a th n h ry A ak g o a e rm s ld s u e tic isto . s e rly a 2 0 B ., B b lo ia s h d d v lo e a sy m o a s 0 0 .C a y n n a e e p d ste f b n s. T e N wT sta e t m n n a o t th a tiv s o th a k h e e m n e tio s b u e c itie f e m n y h n e in th te p s o Je sa m In a c n G e e o e c a g rs e m le f ru le . n ie t re c a d R m th p c e o g n g c d w s w e p v le t. n o e e ra tic f ra tin re it a id ly re a n T c s o c d b c m e sa n a d b tra sfe o e a ra e f re it y o p n tio n y n r rd rs re fo n in A ria P o n ia a d E y t. C ristia s a to k to ud ssy , h e ic n g p h n lso o th lu ra e b sin ss o m n y n in a d e te g in k e e c tiv u e f o e -le d g n n rin to e n c m e n w th Je s w o h d h e m n p lise th o p titio ith e w h a ith rto o o o d e b sin ss o le d g o in re T e m st a c n p b b n in u e f n in n te st. h o n ie t u lic a k g in tio " h B n o V n e w s fo n e in 1 5 A . stitu n T e a k f e ic " a u d d 1 7 .D a u d th m d o th 1 th (tw lfth c n ry in Ita . A ro n e id le f e 2 e ) e tu ly 'M n ' (-a sta d g b n o m u t o m n y w s in e iste c o te n in a k r o n f o e ) a x ne in F re c in 1 3 . T e B n o B rc lo a a d B n o G n a lo n e 36 h ak f a e n n ak f eo w s e b e in 1 0 a d 1 0 re e tiv ly T e fa o s a sta lish d 4 1 n 4 7 sp c e . h m u p b b n , B n o A ste a w s fo n e in 1 0 . T e u lic a k a k f m rd m a u d d 69 h B n o E g n c m in e iste c in 1 9 in th p a a k f n la d a e to x n e 64 e riv te se to b n in . It w s S h m e r w o first e b e o c r ak g a c u p te h sta lish d n e p it lin a e b tw e fin n ia in tio s a d e o o ic x lic k g e e n a c l stitu n n c n m d v lo m n in a fu c n l se se C m ro a d o e h v ee p et n tio a n . a e n n th rs a e d n a c n e b a o n o su sta tiv re a h in a oe o sid ra le m u t f b n e se rc n h ric l p rsp c e re a in b n in in th e rly sta e o isto a e e tiv g rd g a k g e a g f in u lisa n in se e l e o o ie w ic a n w in th d stria tio v ra c n m s, h h re o e d v lo e c te o .'' e e p d a g ry T u th e o m d rnjo t sto kc m e ia b n in sy m h s, e ra f o e in c o m rc l a k g ste c m e c dinth le d gc u trie o th w rld o mn e e a in o n s f e o .

1.3

H r a P r e tiv o B n : In ia isto ic l e sp c e f a k d n

S e a io cnr :
B n in sy m w s in e iste c , in th c d st fo d rin a k g ste a x ne e ru e rm u g v d p rio in In ia D rin th R m y n a d th e ic e d d . u g e a aaa n e Mh b a ta e s, b n in h d b c m a fu fle g d b sin ss a a h ra ra a k g a e o e ll d e u e a tiv . T e m m e o th V ish C m u ity c rrie o th c ity h e b rs f e a o mn a d n e b sin ss o b n in . Mn sm a d K u a A a a u e f a k g a u riti n a tily 's rth sh stra b a te e r stim n to th e iste c a d e c e w rk g o a oy e x n e n ffe tiv o in f b n in sy m in In ia e rly in h ry L ra re o th a k g ste d a isto . ite tu f e B d h p rio su p s g o e id n e o th e iste c o u d ist e d p lie o d v e c f e x n e f " re is" o B n e 5H n is o in ig n u b o e c a g S sth r a k rs.1 u d r d e o s ills f x h n e c m in u a o t th 1 th c n ry A . D rin th M g l a e to se b u e 2 e tu .D u g e o u p rio , m ta m n y w s issu d a d th in ig n u b n e e d e llic o e a e n e d e o s a k rs a d d o e m re lin o m n y c a g g to th ir a a y de n o e f o e h n in e lre d p fita le b sin ss. F n h tra e r J.B T v rn r w te in th ro b u e re c v lle . a e ie ro e 1 th c n ry th t e e v g in In ia h d a m n y c a g r 7 e tu a v ry illa e d a o e hn e c lle th " h ff, w oa c rd gtoh , w s c lle a a b n e a d e S ro h c o in im a a d s a k r tom k re itta c s o m n ya dissu le rs o e c a g . T e a e m ne f o e n e tte f x h n e h e p y e o th E st In ia C m a y sta d c m e ia b n s m lo e s f e a d o pn rte o m rc l a k in C lc tta a d B m a , w ic w re k o n a " g n y a u n o by h h e n w s Ae c H u s" T e A e c H u s w re sim r to th in ig n u o se . h se g n y o se e ila e d eos b n e ' T e B n o H d sta ', th first jo t sto kb n , w s a k rs. h a k f in u n e in c a k a fo n e in In ia in 1 7 b th A x n e a d C m a y T e u dd d 7 0 y e le a d r n o p n . h B n a B n a d th G n ra B n o In ia w re e b e in e gl a k n e e e l a k f d e sta lish d 18. 75 A o g th e rlie b n s e b e in In ia w re th B n o m n e a st a k sta lish d d e e ak f B n a (1 0 ), th B n o B m a (1 4 ) a d th B n o e gl 85 e a k f o by 8 0 n e a k f Md s (1 4 ). T e th e b n s w re a a ra 83 h se re ak e lso k o n a nw s

" re e c B n s." U to th p rio , th re w s n b n in P sid n y a k p e e d e a o ak g le isla n in In ia b t th in ig n u b n e w re w rk g o g tio d u e d e o s a k rs e o in n n rm a d ta o s o th c m u ity T e p c le o lim d o s n b o f e o m n . h rin ip f ite lia ility w s in d c d in 1 6 , w ic e c u g d th b a tro u e 80 h h n o ra e e e b m n o m n c m e ia b n s in th c u try T e sta lish e t f a y o m rc l a k e on . h P sid n y B n s a t w s p sse in 1 7 a d o e tio s o th re e c a k c a a d 8 6 n p ra n f e th e P sid n y B n s w re b u h u d r th u iq e sta te re re e c a k e ro g t n e is n u tu . T e S a e M v m n g v a fillip to In ia Jo t S c h w d si o e e t a e d n in to k B n in a d se e l le d g b n s w re e b e a u d th a k g n v ra a in a k e sta lish d ro n is tim . e T e O d C m e ia B n w s th first p re In ia b n , h u h o m rc l a k a e u ly d n a k e b e in1 8 . T e , fo w dth P n bN tio a B n in sta lish d 8 1 h n llo e e u ja a n l a k 1 9 a d th P o le B n in 1 0 . D rin th p rio fro 8 4 n e e p 's a k 91 u g e e d m 1 0 to1 1 , th n m e o sm ll b n s w refo e /fo n e . 96 93 e u br f a a k e rm d u d d

1.4

S u tu e o In ia Mn yMr e tr c r f d n o e a k t:

S u tu eo In ia M n yMr e tr c r f d n o e a k t

O a iz d rg n e Sc r e to

U o a iz d n rg n e Sc r e to

C -O e tiv o p ra e Sc r e to

Og n e S c r r a iz d e to

RBI

Commercial Banks

DFHI Primary Dealers

Development Banks IDBI IFCI ICICI NABARD SFC EXIM Bank LIC GIC UTI

Public Sector

Private Sector

SBIs Co-Operative Banks

Other Nationalised Banks

Indian Banks

Foreign Banks

Unorganized Sector

Indigenous Banks

Money Lenders

Chits

Nidhis

Co-Operative Sector

State Co-Operative Banks Central Co-Operative Banks

State Land Development Banks Central Land Development Banks

Primary Agriculture Credit Society

Primary Urban Co-Operative Banks Primary Land Development Banks

1 .5

E e g n e o S teB n o In ia: mr e c f ta a k f d

T e ro ts o th S te B n o In ia re in th first d c d o h o f e ta ak f d st e eae f 1 thc n ry w e th 9 e tu , h n e o Bn a f e gl o B ma f o by Md s a ra Bn o ak f C lc tta a u , la r re a e th te n m d e Bn ak Bn ak Bn o ak f a d w re th n e e , w s e b e o 2 Ju e 1 0 . T e B n o B n a a sta lish d n n 86 h a k f e gl (in o o te o 1 A ril 1 4 ) a d th c rp ra d n 5 p 80 n e (in o o te o 1 Ju 1 4 ). A th e P sid n y c rp ra d n ly 8 3 ll re re e c jo t sto k c m a ie in c o pn s ro a c a rs y l h rte . T e th e b n s re e e th h se re a k c iv d e

w s o e o th e P sid n yb n s, th o e tw b in th a n f re re e c a k e th r o e g e

b n s w re in o o te a ak e c rp ra d s re lt o th su f e

e c siv rig t to issu p p r c rre c in 1 6 w th P p r x lu e h e a e u ny 8 1 ith e a e C rre c A t, a rig t th y re in d u til th fo a n o th u ny c h e ta e n e rm tio f e R se e B n o In ia e rv a k f d n m: a e . T e P sid n y b n s a a a a d o h re e c a k m lg m te n . T e Im e l B n o In ia h p ria a k f d 2 Ja u ry 1 2 , a d th re rg n e b n in e tity to k a its 7 n a 9 1 n e o a iz d a k g n o s Im e l B n o In ia p ria a k f d re a e ajo t sto kc m a y m in d in c o p n P rsu n toth p v n o th S te B n o In ia A t (1 5 ), u at e ro isio s f e ta a k f d c 9 5 th e R se e B n o In ia e rv a k f d , w ic is h h In ia c n l b n d 's e tra a k , a q ire a c n llin in re in th Im e l B n o In ia O c u d o tro g te st e p ria a k f d . n 3 A ril 1 5 , th Im e l B n o In ia b c m th S te 0 p 9 5 e p ria a k f d e a e e ta B n o In ia T e ak f d . h g v rn e t o In ia o e mn f d re e tly a q ire th cn cu d e R se e B n o In ia sta e in S I so a to re o e a y e rv a k f d 's k B s mv n c n t o in re t b c u th R I is th c u try b n in o flic f te s e a se e B e o n 's a k g re u to a th rity g la ry u o . In 1 5 , th g v rn e t p sse th S te B n o In ia 9 9 e o e m n a d e ta ak f d (S b ia B n s) A t, e a lin th S te B n o In ia tota e u sid ry a k c n b g e ta a k f d k o e e h fo e sta -a c te b n s a its su sid rie O v r ig t rm r te sso ia d a k s b ia s. n 1 S p m e 2 0 , th 3 e te b r 0 8 e S te B n o S u sh ta a k f a ra tra , o e o its n f

a c teb n s, m rg dw th S teB n o In ia sso ia a k e e ith e ta a k f d . S I h s a q ire lo a b n s inre u s. F r in n e in1 8 , it B a cu d cl ak sc e o sta c , 95 a q ire th B n o C c inin c u d e a k f oh S I w s th a q ire a its a B a e cu r s ffilia , th te e T vno ra a c re , a a yh da e te siv n tw rkinK ra . lre d a n x n e e o e la K ra e la , w ic h d1 0b n h s. h h a 2 ra c e S te B n o ta ak f

A o 3 D c m e 2 0 , th b n h d 1 7 o e a o e s f 1 e e b r 0 9 e a k a 5 v rse s ffic s sp a o e 3 c u trie It h s b n h s o th p re t in re d v r 2 o n s. a ra c e f e a n C lo b o mo N wY rk e o , u its in th n e re re n tiv o e in p se ta e ffic s A BinB sto , U A D o n S . S I o e te se e l fo ig su sid rie o a B p ra s v ra re n b ia s r ffilia s. In1 9 , it te 90 e b e a o h re b n : S teB n o In ia (Mu s). sta lish d n ffs o a k ta a k f d a ritiu In 1 8 , th b n e b e a su sid ry S te B n o In ia 9 2 e a k sta lish d b ia , ta ak f d (C lifo ia w ic n wh s te b n h s n e b n h s in th a rn ), h h o a n ra c e in ra c e e sta o C lifo iaa do e inWsh g n D . T e 1 thb n h te f a rn n n a in to , .C h 0 ra c w s o e e inF m n C lifo ia o 2 Mrc 2 1 . T e o e a pnd re o t, a rn n 8 a h 0 1 h th r e h b n h s inC lifo ia a lo a d in L s A g le A sia ig t ra c e a rn re c te o n e s, rte , S n Jo , C n g P rk F sn , S n D g , T stin a d a se a o a a , re o a ie o u n B k rsfie . ae ld T e C n d n su sid ry S te B n o In ia (C n d ) a h a a ia b ia , ta ak f d a a a lso d te to 1 8 . It h s se e b n h s, fo r in th a s 92 a v n ra c e u e a dth ein n re In N e ig ria B ritishC lu b o m ia . T ro to o n a a re , Da a hk O k sa a , F n fu H n K n , ra k rt, o g o g , S d e , a d T k o It h s y ny n o y . a B h ms aa a , B h in a d a ra , n Bu n h ta ad n Cp T w ae o n Th n e ra Mld e a iv s , Jo a n sb rg hne u , D b i, ua , ad n o o b n in ffsh re a k g S g p re in a o . It a h s a lso a n , L n o , L s A g le Mle in th o d n o n e s, a e , M sc t u a

, S I o e te a IN B B n . T is b n b g n in B p ra s s M a k h a k e a

1 8 a th In o ig ria Mrc a t B n a d re e e 9 1 s e d -N e n e h n a k n c iv d

p rm n in 2 0 to c m e c re il b n in . It n wh s fiv e issio 02 o m n e ta a k g o a e b n h s inN e . ra c e ig ria In Np l ea , S I o n 5 % o N p l S I B n , w ic h s B ws 5 f ea B ak h h a ,w ith C n ra B n aa ak o n g th re w in e st.

b n h s th u h u th c u try In M sc w S I o n 6 %o ra c e ro g o t e o n . o o , B ws 0 f C m e ia B n o In ia o m rc l a k f d In In o e d n sia , it o n 7 %o P B n In oM n x ws 6 f T a k d o e .

T e S te B n o In ia a a y h s a b n h in S a g a a d h ta a k f d lre d a ra c hn hi n p n too e o ein la s pn n In K n a ey T n ia jin . G C m e ia iro o m rc l m ninO to e 2 0 . illio c br 05

, S te B n o In ia o n 7 %o ta a k f d ws 6 f

B n , w ic it a q ire fo U $ ak h h cu d r S8 MinB n ho S I inM m a a ra c f B u b i.

S I h s fiv a c te b n s; a u th sa e lo o o a b e B a e sso ia a k ll se e m g f lu c le a d a th a c te u th " ta B n o n m , irc n ll e sso ia s se e S te a k f" a e fo w db th re io a h a q a rs' n m ; llo e y e g n l e d u rte a e

S teB n o B a e &Ja u ta a k f ik n r ip r S teB n o H d ra a ta a k f y e b d S teB n o M so ta a k f y re S teB n o P tia ta a k f a la S teB n o T v n o ta a k f ra a c re

E rlie S I h d o ly se e a c te b n s th t c n te th a r B a n v n sso ia a k a o stitu d e S te B n G u . O in lly th th n se e b n s th t b c m ta a k ro p rig a , e e v n a k a e a e th a c te b n s b lo g d to e sso ia ak e ne p c ly sta s rin e te u til th n e g v rn e t n tio a d th mb tw e O to e 1 5 a d My o e m n a n lise e e e n c b r 9 9 n a 1 6 . In tu e w th first F e Y a P n e p a 90 n ith e iv e r la , m h sisin th g e d v lo m n o ru l In ia th g v rn e t in g te th se e e p e t f ra d , e o e m n te ra d e b n s in th S te B n o In ia sy m to e p n its ru l a k to e ta ak f d ste xad ra o tre c . T e h s b e a p p sa to m rg a th a c te u a h h re a e n ro o l e e ll e sso ia

b n s in S I to c a a " e a b n " a d stre m e ak to B re te mg a k n a lin o e tio s. p ra n T e first ste to a s u ific tio o c rre o 1 A g st 2 0 h p w rd n a n c u d n 3 u u 0 8 we hn S te B n o S u sh ta a k f a ra tra m rg d w S I, re u in th e e ith B d c g e S te B n ta a k n m e o sta b n s fro se e to six T e o 1 Ju e 2 0 u b r f te a k m vn . hn n 9 n 0 9 th S I b a a p v d th m rg r o its su sid ry e B o rd p ro e e e e f b ia , o In o f d re , w itse S I h ld 9 .3 in S te B n o In o . ith lf. B o s 8 % ta a k f d re (In iv u ls w o h ld th sh re p r to its ta e v r b th d id a h e e a s rio ko e y e g v rn e t h ldth b la c o 1 7 .) o e mn o e a n e f .7 % T e a q isitio o S te B n o In o a d d 4 0 b n h s to h cu n f ta a k f d re d e 7 ra c e S I's e istin n tw rk o 1 ,4 8 a d o e 2 ,0 0 A M A , B x g e o f 2 4 n v r 1 0 T s. lso fo w g th a q isitio , S I's to l a ts w in h v ry c se llo in e c u n B ta sse ill c e lo to th R 1 -la h c re m rk T ta a ts o S I a d th e s 0 k ro a . o l sse f B n e B n o In o a k f d re sto d a R 9 8 1 c re a o Mrc 2 0 . o t s 9 ,1 9 ro s n a h 0 9 T e p c ss o m rg g o S te B n o In o w s c m le d h ro e f e in f ta a k f d re a o p te b A ril 2 1 , a d th S I In o B n h s sta d fu c n g y p 0 0 n e B d re ra c e rte n tio in a S I b n h s o 2 A g st 2 1 . s B ra c e n 6 u u 0 0 A a fro its fiv a c te b n s, S I a h s th fo w g p rt m e sso ia a k B lso a e llo in n n a k gsu sid rie o -b n in b ia s: 1 B C p l Mrk ts L .S I a ita a e td 2 B F n s Mn g m n P t L .S I u d a a e e t v td 3 B F c rs &C m e ia S rv e P t L .S I a to o m rc l e ic s v td 4 B C rd &P y e ts S rv e P t. L . (S IC S ) .S I a s a m n e ic s v td B P L 5 B DHL .S I F I td A r th e d o fte e n f O P Ba . . h tt 's re n a S I C a a o 3 st ig s B h irm n n 1 S te ta

Mrc , 2 1 , th p st w s ta e o e b a h 0 1 e o a kn vr y

P tip C a d u ra h u h ri

,wo h

is th fo e D p ty Mn g g D c r o th In rn tio a e rm r e u a a in ire to f e te a n l D isio o S I. A o 4 A g st, 2 1 , th re a tw lv iv n f B s n th u u 01 e re e e m m e inth S I B a o D c rs, in lu in e b rs e B o rd f ire to c d g w o is a o e o th fo r D p ty G v rn rs o th h lso n f e u e u oe o f e B n o In ia ak f d

S b G k rn u ir o a R se e e rv

. T e c m le list o th B a m m e a : h o p te f e o rd e b rs re

P tipC a d u (C a a ) ra h u h ri h irm n H m n G C n c r (Mn g gD c r) e a t . o tra to a a in ire to D a a G p (Mn g gD c r) iw k r u ta a a in ire to AK n K m r (Mn g gD c r) rish a u a a a in ire to D e CC o si (D c r) ile p hk ire to S V n a c a m(D c r) . e k ta h la ire to D S n a m(D c r) . u d ra ire to P rth sa th Iy n a (D c r) a a ra y e g r ire to G D N d f (O e E p y eD c r) . . a a ffic r m lo e ire to R sh a Mlh tra (D c r) a pl a o ire to D K M l (D c r) . . itta ire to S b V G k rn(D c r) u ir . o a ire to

1. 0 1. 1 1. 2

Ba c e o S I r nhs f B

S te B n o In ia h s 1 2 fo ig o e in 3 c u trie ta a k f d a 7 re n ffic s 7 on s a ro th g b . c ss e lo e S I h s a o t 2 ,0 0 A M (2 ,0 0 A M w s B a bu 5 0 T s 5 0 th T a in u u te b th th n C a a o S te B n S ri O . a g ra d y e e h irm n f ta a k h .P B a o 3 Mrc 2 1 , th d y o h re m n a d h tt n 1 a h 0 1 e a f is tire e t); n S I g u (in lu in a c te b n s) h s a o t 4 ,0 0 B ro p c d g sso ia ak a bu 5 0 AM T s.

S I h s 2 ,5 0 b n h s, in lu in b n h s th t b lo g to B a 1 0 ra c e c d g ra c e a e n its a c te b n s. sso ia a k S I in lu e 9 3 5o e inIn ia B c d s 9 4 ffic s d . In ia n m e o e A B is in b lla i e S te b n o d 's u b r n D e ry ta a k f In ia b lla A B d e ry D S m o a dslo a y bl n gn

T e sy b l o th S te B n o In ia is a c le a d n t h m o f e ta ak f d irc n o k y h le a d a sm ll m n a th c n o th c le A e o n a a t e e tre f e irc . c le d p ts p rfe tio a d th c m o m n b in th irc e ic e c n n e o m n a e g e c n o th b n 's b sin ss. e tre f e a k u e

S gn lo a s

: " u b n in n th ge " P re a k g o in lse

L a toN P on TC

O 8 Ju , 2 1 , S I a re d to g e a lo n o R 1 ,0 0 n th ly 0 1 B g e iv a f s 0 0 c re to N P ( ro TC N tio a T e a P w r C rp ra n a n l h rm l o e o o tio ), m k g it th la e lo n S I h d e e g e to a y sin le a in e rg st a B a v r iv n n g c sto e in its e tire 2 0 y a h ry T e lo n h d a u mr n 0 e r isto . h a a " o r-to o r" m tu d o -d o a rity p rio o 1 y a a c m a ie e d f 2 e rs, c o p n d b a d w o n p rio o fo r y a A N P p ss y ra d w e d f u e rs. n T C re re a sa a th tim o th d c ra n o th lo n th t le se id t e e f e e la tio f e a a " h lo n sh ll b u e fo fin n in th c p l Te a a e tiliz d r a c g e a ita e p n itu o o g in a dn wp je ts." x e d re f n o g n e ro c

N P c a a a th tim , A p R yC o d u c rifie T C h irm n t e e ru o h u h ry la d th t th lo n a o n w u b u d to a d 1 8 0 M a e a m u t o ld e se d 2 ,0 0 W c p c b th e d o y a 2 3 (N P 'c c p c a th a a ity y e n f e r 0 2 T C a a ity t e tim o th d c ra no th lo nw s 3 ,5 4M ). e f e e la tio f e a a 4 8 W

T is lo n w s o re a id d c in fin n e fo p w r h a a ffe d m st e lin g a c r o e p je ts in In ia w ic w re a d c re lt o th le d g ro c d , h h e ire t su f e n in c n in p c d b th o stra ts la e y e R se e B n o In ia e rv a k f d a d th n e in re se riska a n ss o p w r p je ts. It w a h lp c a d w re e f o e ro c ill lso e m im e th sh rtfa o a u d R 4 1 T in iz e o ll f ro n s .5 rillio th t th n a e P w r M istry o In ia e p c d to in u in a h v g th o e in f d x e te cr c ie in e o je tiv s o th E v n F e Y a P n (T is p n b c e f e le e th iv e r la h la ta e d a a d n o 7 ,5 7 M o p w r g n ra n rg te n d itio f 8 7 W r o e e e tio c p c w ic w u re u a in e e t o R 1 .3 a a ity h h o ld q ire n v stm n f s 0 T rillio ). n

1.7

Challenges of Indian Banking Sector:

T e e h n e ro o th b n in se to in th In ia h n a c d le f e a k g c r e d n e o o y th in re sin le e o d re u tio a d th c n m , e c a g v ls f e g la n n e in re sin le e o c m e n h v p c d n m ro s c a g v ls f o p titio a e la e u e u d m n s o b n s O e tin in th d m n in e v n e t e a d n a k . p ra g is e a d g n iro m n h s e p se b n s tov rio s c a n e a xo d ak a u h lle g s.

C sto e se ic u m r rv e

: It is n lo g r a e u te fo b n s to o n e dq a r ak

p v e o ly tra itio a b n in se ic s. A a fro ro id n d n l a k g rv e p rt m p v in th c n e tio a b n in se ic s, b n s h v ro id g e o v n n l a k g rv e ak ae b g n o rin a b u u t o fin n ia se ic s to th ir c n e u ffe g o q e f a c l rv e e lie ts, in lu in c ss se go fin n ia p d c T e u a a c d g ro llin f a c l ro u ts. h ltim te im is to o r a o e p o fo m e g v rie c sto e ffe n -sto -sh p r e tin a d u m rs' fin n ia n e s. S m b n s h v b g n e p y g c sto e a c l e d o e a k a e e u m lo in u m r re tio sh m n g m n sy m to n t o ly re in th la n ip a a e e t ste s o n ta e e istin c sto e b t a to a c n w c sto e T e x g u m rs u lso ttra t e u m rs. h e b m n o n wp a se to b n s a d fo ig b n s sta lish e t f e riv te c r a k n re n a k h s ra id c a g d th c m e e la d a e in th In ia a p ly h n e e o p titiv n sc p e d n c n m r b n in in u o su e a k g d stry a d p c d g a r d m n s o n la e re te e a d n b n s to g a th m lv s u to m e th in re sin n e s o ak e r e se e p et e c a g ed f c sto e F r th d e in c rre t d y b n c sto e it u m rs. o e isc rn g u n a a k u m rs, is n t o ly re v n to o r a w e m n o se ic s b t a o n le a t ffe id e u f rv e u lso p v e th se in a in re sin ly e ie t m n e in te s o ro id e n c a g ffic n a n r rm f c st, tim a dc n e ie c . o e n ovn ne F rth r, u e e p rie c h s sh w th t c n m rs in re x e n e a o n a o su e te sts

a a tim s n t a c rd d fu p te tio a d th ir re t e o co e ll ro c n n e g v n e a n t p p rly a n e to F e b c rie a c s re o ro e tte d d . e d a k

re e e re e ls re e t tre d o le y g u re so a ly c iv d v a cn n s f v in n a n b h h se ic /u r c a e a d e h n e e t o u r ig rv e se h rg s n n a c m n f se c a e w o t p p r a d p r in a n It is in th h rg s ith u ro e n rio tim tio . is c n x th t th G v rn r, R se e B n o In ia h d o te t a e o e o e rv a k f d a m n n d in th A n a P lic S te e t 2 0 -0 th t e tio e e n u l o y ta m n 0 5 6 a R I w ta e in tiv s toe c u g B ill k itia e n o ra e
-

Gre te d g e o fin n ia in lu ninth c u try a r e re f a c l c sio e on ; S ttin u o a m c a ism fo e su g fa e g p f ehn r n rin ir E c ere re l o c sto e g v n e ffe tiv d ssa f u m r rie a c s. It w u , th re re b re so a le to e p c b n s to o ld e fo , e a n b xet ak fo u o th a o e a e ts w ile d sig in th ir c s n e b v sp c h e n g e p d c fo c sto e ro u ts r u m rs.

tre tm n o c n m rs; a d a e t f o su e n
-

ii)

B n h b n in : ra c a k g

T d n lly b n s h v b e lo k g ra itio a a k a e e n o in

to e p n n o th ir b n h n tw rk to in re se th ir x a sio f e ra c e o c a e b sin ss. A a st th b c g u d it is in re g to o se e u e g in is a k ro n te stin b rv th t th n wp a se to b n s a w ll a th fo ig b n s a e e riv te c r a k s e s e re n a k h v b e a le to a h v b sin ss e p n n th u h o e ae en b c ie e u e x a sio ro g th r m a s. It h s b e re liz d th t it m h n t b en a en a e a ig t o e e b sta lish a w e b k a d m rta n tw rk to re c a w e id r ric n o r e o ah id r p p la n B n s a , th re re e a in g th p te tia o u tio . a k re e fo , x m in e o n l b n fits th t m y a c e b ta p g th a e c a n e e t ee a a c ru y p in e g n y rra g m n ro te a d th o tso rc g ro te Wile p c e in in th u n e u u in u . h ro e d g is d c n b n s o g t n t to lo sig t o th n wrisk th t ire tio a k u h o se h f e e s a th y m h b a m g a d h n e p t in p c a p p te e ig t e ssu in n e c u la e p ro ria stra g s a dsy m fo m n g gth se n wrisk te ie n ste s r a a in e e s.
iii)

n c ssa to e e ry

C me n o p titio :

W th e e in re sin p c a de te t o ith e v r c a g a e n x n f

g b lisa n o th In ia e o o y a d th sy m tic lo a tio f e d n c n m n e ste a o e in u o th In ia b n in sy m to g b l p n g p f e d n a k g ste lo a

c m e n b n s n e to e u th m lv s too e te in th o p titio , a k e d q ip e se e p ra e in re sin ly c m e e e v n e t. T is w m k it c a g o p titiv n iro m n h ill a e im e tiv fo b n s to e h n e th ir sy m a d p c d re p ra e r a k nac e ste s n ro e u s toin rn tio a sta d rd a da sim lta e u fo te a n l n a s n lso u n o sly rtifyth ir e fin n ia p sitio s a c l o n.
iv)

T c n lo y eho g

A fe b n s w ic h v im re e w ak h h ae p ssiv

b n h n tw rk h v n t b e a le to m e th ir c sto e ra c e o s a e o e n b e t e u m rs e p c tio s d e to in ffic n ie a x e ta n u e ie c s risin o t o in d q a g u f a e u te in e e t in te h o g a d c n q e tly fa e a e sio v stm n c n lo y n o se u n c d n ro n o th ir m rk t sh re T e b n fic rie a th se b n s f e a e a s. h e e ia s re o ak w ic h v in e d in te h o g . A o e d c h h a e v ste c n lo y n th r istin t a v n g o u o te h o g is th a ilitytoe c e u d a ta e f se f c n lo y e b ffe tiv ly se q a tita e te h iq e a d m d ls w ic c n e h n e th u n tiv c n u s n o e h h a nac e qa u lity o th ir risk m n g m n sy m R c g isin th f e a a e e t ste s. e o n g e b n fits o m d rn g th ir te h o g in stru tu b n s ee f o e isin e c n lo y fra c re a k a ta in th rig t in tiv s. T e c a n e in th re a re k g e h itia e h h lle g is g rd w b fo b n s to e su th t th y d riv m x u ill e r a k n re a e e e a im m a v n g o t o th ir in e e ts in te h o g a dtoa o d a ta e u f e v stm n c n lo y n v id w ste l e p n itu w ic m h a o a c u t o a fu x e d re h h ig t rise n c o n f
a.

Un o rd a d a d p c m a a o tio o c o in te n ie e e l d p n f te h o g ; c n lo y

b.

Ad p n o tio

o f

in p ro ria / a p p te

in o siste t cn n

te h o g a d c n lo y n
c.

Ad p no o so tete h o g . o tio f b le c n lo y

A c se in p in is th im le e ta n o c re b n in a o t e p m n tio f o a k g so tio s b so e b n s w o t a ssin its sc la ility lu n y m a k ith u sse g a b o a a ta ilitytom e B se II re u m n r dp b et a l q ire e ts.

v)

Im ro in R Mn g m n S ste s: p v g isk a a e e t y m

W th in re sin ith e c a g

d g e o d re u tio a d e p su o b n s to v rio s e re f e g la n n x o re f a k a u ty e o risk e ie t risk m n g m n sy m h v ps f s, ffic n a a e e t ste s a e b c m e n l. A y u a a a , a a ste to a s e o e sse tia s o re w re s p w rd fu e e h n in a d fin -tu in risk m n g m n rth r n a c g n e n g aae et sy m in b n s, R se e B n h s issu d g id lin s o ste s a k e rv a k a e u e e n a t-lia ility m n g m n a d risk m n g m n sy m sse b aae et n a a e e t ste s in b n s in 1 9 a d G id n e N te o C d R ak 9 9 n u a c o s n re it isk Mn g m n a d Mrk t R Mn g m n in O to e aae et n a e isk a a e e t c br 2 0 a d th G id n e N te o O e tio a risk 02 n e u ac o n p ra n l m n g m n in 2 0 . T o g B se II fo u s aae et 05 huh a l c se sig ific n o risk its im le e ta n sh u n t b n a tly n s p m n tio o ld o e se n a a e d in itse It sh u b se n a a m d m e s n n lf. o ld e e s e iu w e b th risk m n g m n sy m in b n s a h re y e a a e e t ste s a k re c n n u g d dtoa d ss th c a g ge v n e t. o sta tly p ra e d re e h n in n iro m n A th in l sta e o d v lo m n o th risk t e itia gs f e e p e t f e m n g m n sy m b n s w re m n g g e c risk in a a e e t ste s, a k e a a in a h iso tio . T e c rre t b sin ss e v n e t d m n s a la n h u n u e n iro m n e a d m re in g te a p a h to risk m n g m n It is n o te ra d p ro c a a e e t. o lo g r su ie t to m n g e c risk in e e d n o in n e ffic n aae ah d p n e tly r fu c n l silo E te rise w rld id a , th re re n tio a s. n rp s o w e re e fo , n w p ttin in p c a in g te fra e o fo risk o u g la e n te ra d m w rk r m n g m n w ic is p a tiv , sy m tic a d sp n aae et h h ro c e ste a n as a ro th e tire o a isa n B n s in In ia a a c ss e n rg n tio . a k d re lso m v g fro th in iv u l silo sy mto a e te rise o in m e d id a ste n n rp w e risk m n g m n sy m T is is p c g g a r id a a e e t ste . h la in re te d m n s o th risk m n g m n sk in b n s a d h s e ad n e a a e e t ills ak n a b u h to th fo fro t th n e fo c p c b ild g ro g t e re n e e d r a a ity u in . Wile th first m sto e w u b risk in g tio a ro h e ile n o ld e te ra n c ss th e tity b n s a a a a o th d sira ility o risk e n , a k re lso w re f e e b f

a g g tio a ro th g u b th in th sp c g re a n c ss e ro p o e e ific risk a a a a a ro th risk B n s w u b re u dto re s s lso c ss e s. a k o ld e q ire a c te sig ific n re u e to a s th o je tiv o e llo a n a t so rc s w rd is b c e v r th n x fe y a e e t w e rs.
vi)

Im le e ta n o n wa c u tin sta d rd p m n tio f e c o n g n a s:

D riv tiv e a e

a tiv in b n s h s b e in re sin a a b c ity ak a en c a g t risk p c . Wile ae h th risk m n g m n fra e o fo d riv tiv tra in , w ic e a a e e t m w rk r e a e d g h h is a re tiv ly n wa a fo In ia b n s (p rtic la in th la e e re r d n a k a u rly e m re stru tu d p d c is a e n l p -re u , th o c re ro u ts), n sse tia re q isite e a se c o c a a c u tin g id lin s inth a ais m tte o b n e f le r c o n g u e e is re a r f sig ific n c n e . It is w e a c p d th t a th v lu e n a t o c rn id ly c e te a s e o m o tra sa tio s in re se w ic is h p e in in th In ia f n c n c a s, h h a pn g e d n b n in sy m th n e to u g d th a c u tin a k g ste , e e d p ra e e c o n g fra e o n e s n e p a m w rk e d o m h sis. T h Wrld B n s R S o e o a k OC n A c u tin a d A d g in In ia h s c m e te o th c o n g n u itin d a o mn d n e a se c o a a c u tin sta d rd w ic d a w b ne f n con g na h h e ls ith re o n n m a re e t a d d lo re p rta in to c g itio , e su m n n isc su s e in g fin n ia in m n T e A c u tin S n a s B a o th a c l stru e ts. h c o n g ta d rd o rd f e In te o C a re A c u ta ts o In ia (IC I) is stitu f h rte d c o n n f d A c n e g issu o A c u tin S n a s o th a o e o sid rin e f c o n g ta d rd n e b v a e ts p rta in to fin n ia In m n T e w b th sp c e in g a c l stru e ts. h se ill e e In ia p ra l to In rn tio a A c u tin S n a s 3 a d d n a lle te a n l c o n g ta d rd 2 n 3 . T e p p se A c u tin S n a s w b o 9 h ro o d c o n g ta d rd ill e f c n e b sig ific n e fo fin n ia e titie a d c u o sid ra le n ac r a c l n s n o ld th re re h v im lic tio s fo th fin n ia se to T e e fo ae p a n r e a c l c r. h fo a in d c n o th se A c u tin S n a s b th rm l tro u tio f e c o n g ta d rd y e IC I is lik ly to ta e so e tim in v w o th p c sse A e k m e ie f e ro e s in o e . In th m a w ile th R se e B n is c n e g v lv d e e n h , e e rv a k o sid rin th n e fo b n s a d fin n ia e titie a o tin th b a e ed r ak n a c l n s d p g e ro d u d rly g p c le o IA 3 . S c th is lik ly to g e n e in rin ip s f S 9 in e is e iv

rise to so e re u to / p d n l issu s a re v n a e ts m g la ry ru e tia e ll le a t sp c a b in c m re e siv ly e a in d T e p p sa in th re e g o p h n e x m e . h ro o ls is re a w u , a is n rm l, b d u d w th m rk t g rd o ld s o a e isc sse ith e a e p rtic a ts a ip n b fo e re in d c n tro u tio . A o tio dp n ad n im le e ta n o th se p c le a lik ly to p se a g a p m n tio f e rin ip s re e o re t c a n etob thth b n s a dth R se eB n . h lle g o e a k n e e rv a k

vii)

T n a n y a d D lo re ra sp re c n isc su s:

In p rsu n e o th u ac f e

F a c l S c r R fo s in d c d sin e 1 9 a d in o e in n ia e to e rm tro u e c 91 n rd r to b g a o t m a in fu d lo re o th tru fin n ia rin b u e n g l isc su f e e ac l p sitio o b n s toe a le th u rs o fin n ia sta m n to o n f ak n b e se f a c l te e ts stu y a d h v a m a in fu c m a n o th ir p sitio s, a d n ae e n g l o p riso f e o n se s o m a re w re in te . T e d lo re re u m n rie f e su s e itia d h isc su q ire e ts b a lyc v re th fo w ga e ts: ro d o e d e llo in sp c Cp la e u c a ita d q a y A tq a sse u lity Mtu a rity d istrib tio o se c ite s o a ts a d u n f le t m f sse n lia ilitie b s P fita ility ro b C u tryriske p su on x o re R e p su s ind riv tiv s isk x o re e a e S g e t re o g e m n p rtin R la dP rtyd lo re e te a isc su s W a v wto m v g c se to a s in rn tio a ith ie o in lo r w rd te a n l b st p c e in lu in In rn tio a A c u tin e ra tic s c d g te a n l con g S n a s (IA ) a d th d lo re re u m n u d r ta d rd S n e isc su q ire e ts n e P r 3 o B se II, R se e B n h s p p se illa f a l e rv a k a ro o d e h n e d lo re w ic la a g a r e p a o n a c d isc su s h h y re te m h sis n d lo re o c rta q a tiv a e ts. isc su f e in u lita e sp c T n a ny ra sp re c

a dd lo re sta d rd a a re o n da im o n n isc su n a s re lso c g ise s p rta t c n e ts o stitu n o f a so n c rp ra u d o o te g v rn n e oe ac a k a re u d to fo u te a fo a n s re q ire rm la rm l m c a ism B ehn .

d lo re p lic a p v db th B a o d c rs th t isc su o y p ro e y e o rd f ire to a a d sse th b n s a p a h fo d te in g w a d re s e a k p ro c r e rm in ht d lo re it w m k a dth in rn l c n ls o e th isc su s ill a e n e te a o tro v r e d lo re p c ss. In a d n b n s sh u im le e t isc su ro e d itio , a k o ld p m n a p c ss fo a ssin th a p p te e o th ir ro e r sse g e p ro ria n ss f e d lo re in lu in v lid tio a dfre u n y isc su s, c d g a a n n qec.

viii)

S p rv n o fin n ia c n lo e te u e isio f a c l o g m ra s:

In v w o ie f

in re se fo u o e p w rin su e iso to u d rta e c a d c s n m o e g p rv rs ne k c n lid te su e isio o b n g u s a d sin e th C re o so a d p rv n f a k ro p n c e o P c le fo E c e B n in S p rv n issu d b th rin ip s r ffe tiv a k g u e isio e y e B se C m itte o B n in S p rv n h v u d rsc re a l o m e n a k g u e isio a e n e o d c n lid te su e isio a a in e e d n p c le th o so a d p rv n s n d p n e t rin ip , e R se e B n h d in d c d a a in l ste , c n lid te e rv a k a tro u e , s n itia p o so a d a c u tin a d o e q a tita e m th d to fa ilita con g n th r u n tiv e os c te c n lid te su e isio . T e c m o e ts o c n lid te o so a d p rv n h o p n n f o so a d su e isio in lu e c n lid te fin n ia sta m n p rv n c d , o so a d ac l te e ts in n e fo p b d lo re c n lid te p d n l re o te d d r u lic isc su , o so a d ru e tia p rts in n e fo su e iso a ssm n o risk a d a p a n te d d r p rv ry sse e t f s n p lic tio o c rta p d n l re u tio s o g u b sis. In d e f e in ru e tia g la n n ro p a u c u , c n lid te su e isio a in d c d a o e w u o rse o so a d p rv n s tro u e b v o ld e o e to c v r b n s in m e c n lo e te w e th v lv oe ak ix d o g m ra s, h re e p re t m y b n n a c l e titie o p re ts m y b a n a e o -fin n ia n s r a n a e fin n ia e titie c m g u d r th ju ic n o o e a c l n s o in n e e risd tio f th r re u to g la rs.

ix)

'K o Y u C sto e (K C G id lin s A ti M n y n w o r u m r' Y ) u e e n oe : B n s w re a v d in 2 0 to fo w a k e d ise 02 llo

L u d rin S n a s a n e g ta d rd

c rta c sto e id n a n p c d re fo o e in o e in u m r e tific tio ro e u r pn g f a c u ts a d m n rin tra sa tio s o a su ic u n tu c o n n o ito g n c n f sp io s a re fo th p rp se o re o g it to a p p te a th rity T e r e u o f p rtin p ro ria u o . h se K o Y u C sto e g id lin s w re re isite in th n w o r u m r u e e e v d e c n x o th re o m n a n m d b th F a c l o te t f e c m e d tio s a e y e in n ia A tio T sk F rc o A ti M n y L u d rin sta d rd a d c n a o e n n oe ane g na s n o C m a g F a c g o T rro n o b tin in n in f e rism T e sta d rd h v . h se n a s a e b c m th in rn tio a b n h a fo fra in A ti M n y e o e e te a n l e c m rk r m g n o e L u d rin a d c m a g fin n in o te rismp lic s b a n e g n o b tin a c g f rro o ie y th re u to a th ritie C m lia c w th se sta d rd e g la ry u o s. o p n e ith e na s b th b th b n s/fin n ia in tio s a d th c u try h s o y e ak a c l stitu n n e o n a b c m n c ssa fo in rn tio a fin n ia re tio sh s. e o e e e ry r te a n l a c l la n ip D ta d g id lin s b se o th R c m e d tio s o th e ile u e e a d n e e o m n a n f e F a c l A tio T sk F rc a d th p p r issu d o in n ia c n a o e n e ae e n C sto e D e D e c fo b n s b th B se C m itte u m r u ilig n e r a k y e a l o m e o B n in S p rv n w n a k g u e isio , ith in ic tiv su g stio s d a e ge n w e v r c n e d n c ssa , w re issu d to b n s in h re e o sid re e e ry e e ak N v m e 2 0 . B n s w re re u d to e su th t a p p r oe br 04 a k e q ire n re a ro e p lic fra e o o K o Y u C sto e a d A tio y m w rk n n w o r u m r n n M n y L u d rin m a re is fo u te a d p t in p c o e a n e g e su s rm la d n u la e w th a p v l o th B a w in th e m n s a d b ith e p ro a f e o rd ith re o th n e fu c m lia t w th se g id lin s b fo D c m e 3 , lly o p n ith e u e e e re e e b r 1 2 0 . C m lia c w th a o e is a sig ific n c a n e to 0 5 o p n e ith e b v n a t h lle g th e tire b n in in u e n a k g d stry to fo rtify itse a a st m se b lf g in isu y a ti-so ia p rso s/ e titie a d th s p je t a p tu o n c l e n n s n u ro c ic re f so a a dfin n ia in g o th In ia b n in sy m lid rity n a c l te rity f e d n a k g ste toth in rn tio a c m u ity e te a n l o m n .

x)

C rp ra o o te

G v rn n e oe ac

: B n s a e ia a th y n t a k re sp c l s e o

o ly a c p a d d p y la e a o n o u c lla ra e n c e t n e lo rg m u t f n o te liz d p b fu d infid c ryc p c , b t th ya le e g su h u lic n s u ia a a ity u e lso v ra e c fu d th u h c d c a n B n s a a im o n fo n s ro g re it re tio . a k re lso p rta t r sm o fu c n g o th p y e t sy m In v w o th o th n tio in f e a m n ste . ie f e a o e le a p sc tio s fo o n rsh a d g v rn n e o b v , g l re rip n r w e ip n o e a c f b n s la d w in B n in R g la n A t, 1 4 h v b e a k id o n a k g e u tio c 9 9 a e e n su p m n d b re u to p sc tio s issu d b R I fro p le e te y g la ry re rip n e y B m tim to tim . In th c n x e e is o te t, o e m st re e b r th t p fit n u m m e a ro m tiv sh u n t b th so c rio fo b sin ss d c n o e o ld o e e le rite n r u e e isio s. F w o b n fin n e fo p d c e p rp se m st a a s lo f a k a c r ro u tiv u o s u lw y ta e p rity o e th g n g o c d fo sp c la e k rio v r e ra tin f re it r e u tiv in e e t n m tte h wp fita le th la r m yb . If b n v stm n o a r o ro b e tte a e ak fin n e flo s in re sin ly to fin n e sp c la e a tiv s, it ac w c a g a c e u tiv c itie w b to th d trim n o re l p d c e in e e t fo ill e e e e t f a ro u tiv v stm n r re a h d v lo m n a d th p d c n o re l g o s/ se rc , e e p e t n e ro u tio f a o d se ic s. O e m h c n lu e th t su h u c n lle flo rv e n ig t o c d a c n o tro d w w u u a ly a c e o o ic g w . H n e fu d g o o ld ltim te ffe t c n m ro th e c , n in f sp c la e a tiv s m st b su je t to p d n l lim e u tiv c itie u e b c ru e tia its, e e th u h it m h y ld a c e re rn T is w b a vn og ig t ie ttra tiv tu s. h ill e sig ific n c a n e to b n s w e th p ritie a d n a t h lle g ak h re e rio s n in e tiv s m h n t b w ll b la c d b th o e tio o c n e ig t o e e a n e y e p ra n f so n p c le o c rp ra g v rn n e If th in rn l u d rin ip s f o o te o e a c . e te a im a n e a n t re a n e im e ia ly th c rre tio b la c s re o -b la c d m d te , e o c n m y e o e th u h e te a fo e a d m y b p in l a d a v lv ro g x rn l rc s n a e a fu n c stly to a sta e o e T e fo u th re re sh u b o o ll k h ld rs. h c s, e fo , o ld e n e h n in a d fo in o e tio o th p c le o so n n a c g n rtify g p ra n f e rin ip s f u d c rp ra g v rn n e o o te o e a c .

C n lu n o c sio :

F n s, it is c c l fo th b n in in u rie d ru ia r e a k g d stry to m e th et e in re sin ly c m le sa in s a d fin n in n e s o th c a g o p x v g n ac g ed f e e o o y b o rin a w e a d fle ib ra g o fin n ia c n m y ffe g id r n x le n e f a c l p d c ta re fo a ty e o c sto e W th ro u ts ilo d r ll p s f u m rs. ith e in re sin le e o g b lisa n o th In ia b n in c a g v ls f lo a tio f e d n a k g in u , e o tio o u iv rsa b n s a d b n lin o d stry v lu n f n e l a k n u d g f fin n ia se ic s, c m e n in th b n in in u a c l rv e o p titio e a k g d stry w ill in n te sify fu e T e b n in in u rth r. h a k g d stry h s th p te tia a d a e o n l n th a ility to rise to th o c sio a d m n te b th e b e c a n s e o stra d y e ra id p c o a to a n w ic h s a a y h d a p fo n p a e f u m tio h h a lre d a ro u d im a t o ra g th sta d rd o b n in se ic s. T e p c n isin e na f a k g rv e h fin n ia stre g o in iv u l b n s, w ic a m jo ac l n th f d id a a k h h re a r p rtic a ts in th fin n ia sy m is th first lin o a ip n e a c l ste , e e f d fe c a a st fin n ia risk S n c p l p sitio s a d e n e g in ac l s. tro g a ita o n n b la c sh e p c b n s in a b tte p sitio to d a w a n e e ts la e a k e r o n e l ith a d a so th e o o ic sh c s. B n s n e to su p m n n b rb e c n m ok a k ed p le e t th w so h a da dro u risk m n g m n p c e is ith p istic te n b st a a e e t ra tic s a d th re lv to fa e n e so e c o e tin sta d rd p ra g n a s. c m e n w o t d tin th o p titio ith u ilu g e

1.7

Achievements of Indian Banks: