The financial sector reforms have brought about significant changes and had
positive impact in the financial strength and the competitiveness of the Indian
banking system. The prudential norms, accounting and disclosure standards,
risk management practices, etc are keeping pace with global standards,
making the banking system resilient to global shocks.
3. CONCLUSION
The financial sector reforms have brought about significant changes and had
positive impact in the financial strength and the competitiveness of the Indian
banking system. The prudential norms, accounting and disclosure standards,
risk management practices, etc are keeping pace with global standards,
making the banking system resilient to global shocks.
4. CONCLUSION
Recently, the Indian Banks have undergone significant developments and in
vestments. In this sector, there are huge opportunities and numerous
challenges. Challenges include, financial inclusion, deregulation of interest rates
on saving deposits, slow industrial growth, management of asset quality,
increased stress on some sectors, transition to the International Financial
Reporting System, implementation of Basel III & so on.
5.
6. CONCLUSION
The Indian Banks have managed to grow with resilience during the post
reform era. However the Indian banking sector still has a large market
unexplored. With the Indian households being one of the highest savers in the
world accounting for 69% of India’s gross national saving of which only 47% is
accessed by the banks.
7. CONCLUSION
More than half of the Indian population is still unbanked with only 55% of the
population having a deposit account and 9% having credit accounts with banks.
India has the highest number of households (145 million) excluded from
Banking & has only one bank branch per 14,000 people. This kind of statistics
shows that there is huge unexplored market for Indian Banking System.
8. CONCLUSION
Under the guidelines of the RBI, with regards to Basel III, minimum tier 1 capital
ratio has been fixed at 7% of risk weighted assets (RWAs), of which 5.5% is
common equity. The unique features of Basel III is that all non‐common tier I and
tier II instruments issued by banks will have a provision that requires such
instruments, to be either written off or converted into common equity upon the
bank which has solvency issues.