Volume : III, Issue : I, January - 2013

Changing Paradigms of Banking Sector

P. Manivannan

Abstract :

Indian Banking sector is at this time passing through an exciting and challenging phase. Sooner than nationalization of banks, their activities were constrained to the urban areas and uncared for in the rural and semi–urban areas. The most important portion of the credit facilities was enjoyed by the large industries and big business houses. The priority sectors like agriculture, small scale industries are totally neglected. So the nationalization was necessitated. At the same time as a result of this, tremendous and rapid expansion was made in this field. By 1991, our financial system was saddled with an incompetent and financially unsound banking sector. In the year 1992 the banking sector reform package was introduced, based on the recommendations, which are proposed by the Naramimham committee. The Government has established rules to recapitalized public sector banks in order to give banks sufficient financial strength and to enable them to gain access to capital market. RBI permitted private entry in to the banking sectors, provided that new banks were well capitalized and technologically advanced and at the same time prohibited cross holding practices with industrial groups. Moreover banks are also permitted to do the non–traditional banking activities. In this background an attempt has

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

P. Manivannan Changing Paradigms of Banking Sector Indian Journal of Applied Research, Vol.III, Issue.I January 2013

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