IMPACT OF ELECTRONIC BANKING ON RURAL ECONOMY

INTERNET BANKING

Internet banking is a Self-service channel through which the customer will be interesting with the branch for Transacting business and seeking information. The channel is an extremely comprehensive product for both retail and corporate customers. It has acquired real-time transaction processing capability and has been supporting the business initiatives of the bank in the area of bill payments, IT application money receipts, railway ticket bookings, credit card payments, insurance premium payments etc.

 

IMPACT OF E-BANKING ON RURAL ECONOMY

In underdeveloped countries like India, there was a tendency on the part of people to invest their savings in unproductive channels like real estate, gold and silver etc. The socio-economic setup was responsible for this. The reason why people invested in hoarded wealth was that they could be converted into money whenever required. The savings of the land owners or rent earners were directed into unproductive expenditure and conspicuous consumption. This class of people had the power to save but lacked the will to save. The savings of peasants were invested in bullion or in lending money to other peasants. Some of them invested their savings in cattle. But cattle die and become dry. The savings of middleclass people (wage earners and salaried persons) were used for the education of their children, for building residential houses and for meeting unexpected circumstances. The above people were not aware how to utilize their savings for socially useful purposes. To discourage such hoarding and unproductive expenditure, rural branches of banks were opened to mobilize the savings of rural people. First, they were only engaged in their traditional banking of accepting and lending of money. Then only they were diversified their activities into new fields of operations like merchant banking, leasing, housing finance, mutual funds, venture capital etc. They had introduced a number of innovative schemes for mobilizing deposits. In addition to the above, they were providing valuable services to the rural customers by way of collecting cheques, bills, purchasing securities on behalf of customers, issuing drafts, travellers cheques, gift cheques, accepting valuable for safe custody. Now the rural customers are encouraged to move from the current paper based system of notes, cheques, statements and bank-tellers to the complete impersonal electronic banking system.

 

CONCLUSION

 

E-banking is a successful strategic weapon for banks to remain profitable in a volatile, and competitive marketplace of today. Clearly, despite the threats posed by non-bank financial intermediaries, there is enormous opportunity for far-sighted banks to reap the rewards available from e-banking. If banks are to retain their competitiveness, they must focus on customer retention and relationship management, upgrade and offer integration and value added services, especially in the consumer-banking sector. Technology has indeed transformed the Indian banking sector, but the technology itself has undergone a sea-change. It has been an arduous yet learning journey for the Indian banking system which has passed the milestones of Automated Ledger Posting Machines, the mainframes, the minicomputers, microcomputers and PCs. In fact, the banking system has mirrored the developments in the computer Industry. Delivery channel developments came next, with the ATM changing banking rules and forming the base for innovative channel developments such as Internet banking and the recent ones to enter the field-call centres and mobile banking. Now, the current and infact lasting trend will be that of centralization through implementation of centralized banking solutions which will integrate all banking applications, processes and delivery channels. This has in turn, led to a surfeit of backend developments such as security tools, networking, data warehousing and CRM. Put simply, a bank has come to rely on technology like never before. In the past, banking was influenced by technology, now it seems technology is influenced by banking.

Article Source:http://www.articlesbase.com/banking-articles/impact-of-electronic-banking-on-rural-economy-1284717.html

PROBLEMS AND RECOVERY OF NPA AT BRANCH BANKS

The Banks in India Face the problems of swelling non-performing assets (NPAs) and the issue is becoming more and more unmanageable.  The NPAs have direct impact on banks profitability, liquidity and equity.  The NPAs of Indian Banks are relatively huge by international standard.  Therefore the biggest ever challenge that the banking industry now faces is management of NPAs.  It is true that banks have to restrict their lending operations to secured advances only with adequate collateral securities.

 

 In this connection banks must aware of the problems and recovery legislations of NPAs Non performing assets means an advance where payment of interest or repayment of installments of principal or both remains for a period of more than 180 days. 

 

The magnitude of NPAs have a direct impact on banks profitability as legally they are not allowed to book income on such accounts and at the same time banks are forced to make provision on such assets as per the RBI guidelines.  The Indian Banking sector is facing a serious situation in view of the mounting NPAs which are the tune of Rs.56,000 crores in March 2002.NPAs is an important parameter in the analysis of financial performance of banks.  The reduction of NPAs is necessary to improve profitability of the banks and comply with capital adequacy norms. 

 

Therefore, to solve the problems of existing NPAs, quality of appraisal supervision and follow up should be improved.  The NPAs can be avoided at the initial stage of credit consideration by putting rigorous and appropriate credit appraisal mechanism.  This is in order to recover the NPA debt, the judicial systems should revamped and is essential to enforce the SARFAESI Act with more stringent provisions to realize the securities and personal assets of the defaulters.

Article Source:http://www.articlesbase.com/banking-articles/problems-and-recovery-of-npa-at-branch-banks-1284736.html

Performance measurement of Banks -NPA analysis & credentials of Parameters

Over the last few years Indian Banking, in its attempt to integrate itself with the global banking has been facing lots of hurdles in its way due to its inherent weaknesses, despite its high sounding claims and lofty achievements. In a developing country like ours, banking is seen as an important instrument of development, while with the strenuous NPAs, banks have become helpless burden on the economy. Looking to the changing scenario at the world level, the problem becomes more ironical because Indian banking, cannot afford to remain unresponsive to the global requirements. The banks are, however, aware of the grim situation and are trying their level best to reduce the NPAs ever since the regulatory authorities i.e., Reserve Bank of India and the Government of India are seriously chasing up the issue. Banks are exposed to credit risk, liquidity risk, interest risk, market risk, operational risk and management/ownership risk. It is the credit risk which stands out as the most dreaded one. Though often associated with lending, credit risk arises whenever a party enters into an obligation to make payment or deliver value to the bank. The nature and extent of credit risk, therefore, depend on the quality of loan assets and soundness of investments. Based on the income, expenditure, net interest income, NPAs and capital adequacy one can comment on the profitability and the long run sustenance of the bank. Further, a comparative study on the performance of various banks can be done using a ratio analysis of these parameters. There are a number of ratios that can be used to comment on the different aspects :

 The essential ratios that can be used for assessing the banks’ profitability and sustenance are

Profitability

Intermediation Costs/Total Assets

Assets

Net Interest Income/Total Assets

Other Income/Total Assets

Asset Quality

NPAs/Total Assets

NPAs/Advances

Staff Productivity

Net Profit/ Total Number of Employee

Sustenance

Capital/RWAs

 For commenting on the Bank’s performance, a comparison to the total assets of the bank will give a true picture.

    Controlled Expenses

The intermediation costs of a bank refer to the operating cost of the bank and include all the administration and operational costs incurred while offering its services. The ratio of the intermediation costs of the bank to the total assets should be kept low to ensure greater profitability. As mentioned earlier, a technology savvy bank will always be in a better position to reduce its operating costs. Consider the operating expenses of the various banking sectors and the industry average for the year 1999-2000. The costs for the entire SCBs rose by 9.1 percent. The maximum rise of 25.1 percent has been witnessed in the new private sector banks while the foreign banks experienced a decline in the operating costs by 3.3 percent. The ratio of the intermediation costs to the total assets indicates a decline. The maximum decline was in the case of new private sector banks and the foreign banks.

    Margins – Lowered by Subdued Interest Rates

The ratio of the net interest income (Spread) to the total assets gives the net interest margin of the bank. This ratio is the actual measure of the bank’s performance as an intermediary, as it examines the bank’s ability in mobilizing lower cost funds and investing them at a reasonably higher interest. By borrowing short and lending long, banks can earn higher spreads nevertheless by doing so they will be exposed to greater risks. Hence banks need to be cautious and should not accept risks beyond their ability to control/manage them. Product innovation using the right technology is one approach, which can be followed by the banks to mobilize cheaper funds.

  Asset Quality – NPA burden lowering

The asset quality of the banks can be examined by considering the NPAs. These NPAs should be considered against not just total assets but also against the advances, cause the NPAs primarily arise. When NPAs arise, banks have to make provision for the same as per the regulatory prescriptions. When the provisions are adjusted against the Gross NPAs it gives rise to the net NPAs. Provisions reduce the risk exposure arising due to the NPAs to a reasonable extent as they ensure that the banks sustain the possible loss arising from these assets.

   Capital Adequacy Ratio-Strengthening Further

The one important parameter that essentially relates to the bank’s ability to sustain the losses due to risk exposures is the bank’s capital. The intermediation activity exposes the bank to a variety of risks. Cases of big banks collapsing due to their bank’s inability to sustain the risk exposures is readily available. Considering this, it is highly essential to examine the capital vis-à-vis the risk weighted assets. This is the Capital to Risk Weighted Assets Ratio (CRAR) as given by the Basle Committee. The statutory prescription for CRAR is 9 percent, which has been well surpassed by most banks.

 

LIST of Ratios for Analysis of Performance of Banks

1. Profitability Ratios

• Interest Expenses/Total Income
• Non-Interest Expenses/Total Income
• Non-Interest Income/ Non-Interest Expenses
• Interest Income/ Total Assets
• Interest Expenses/ Total Assets
• Net Interest Margin (NIM) = NII/ Total Assets
• Profit Margin = Net Profit/ Total Income
• Asset Utilization = Total Income/Total Assets
• Equity Multiplier = Total Assets/ Equity
• Return on Assets = Net Profit/ Total Assets
• Return on Equity = Net Profit/ Equity

Sustenance:

• Capital to Risk Weighted Assets (CRAR) = Total Capital/ (RWAs)
• Core CRAR = Tier I Capital / RWAs
• Adjusted CRAR = (Total Capital – Net NPAs)/(RWAs – Net NPAs)

 

Staff Productivity

• Net Total Income/ Number of Employees
• Profit per Employee = Net Profit/Number of Employees
• Business per Employee = (Advances + Deposits)/Number of Employees
• Break-even Volume of Incremental Cost per Employee = Cost per Employee/ NIM

1. Asset Quality

• Gross NPAs/ Gross Advances
• Gross NPAs/Total Assets
• Net NPAs/ Net Advances
• Net NPAs/ Total Assets
• Provisions for loan losses/Gross Advances
• Incremental RWAs/ Incremental Total Assets

1. Total Assets

• Provisions for loans and investments/Total Assets

(RWA = Risk Weighted Assets)

    

 concepts used in the ratios are as follows:

1. Cash in cash-deposit ratio includes cash in hand and balances with RBI.

2. Investments in investment-deposit ratio represent total investments including investments in non-SLR  Securities.

3. Net interest margin is defined as the total interest earned less total interest paid.

4. Intermediation cost is defined as total operating expenses.

5. Wage bills is defined as payments to and provisions for employees (PPE).

6. Operating profit is defined as total earnings less total expenses, excluding provisions and   Contingencies.

7. Burden is defined as the total non-interest expenses less total non-interest income.

     Definitions of the ratios are as follows:

1. Cash-Deposit ratio = (Cash in hand + Balances with RBI) / Deposits

2. Ratio of secured advances to total advances = (Advances secured by tangible assets + Advances Covered by bank or Govt. guarantees) / Advances

3. Ratio of interest income to total assets = Interest earned / Total assets

4. Ratio of net interest margin to total assets = (Interest earned – Interest paid) / Total assets

5. Ratio of non-interest income to total assets = other income / Total assets

6. Ratio of intermediation cost to total assets = Operating expenses / Total assets

7. Ratio of wage bill to intermediation costs (Operating Expenses) = PPE / Operating Expenses

8. Ratio of wage bill to total expenses = PPE / Total expenses

9. Ratio of wage bill to total income = PPE / Total income

10. Ratio of burden to total assets = (Operating expenses – Other income) / Total assets.

11. Ratio of burden to interest income = (Operating expenses – Other income) / Interest income

12. Ratio of operating profits to total assets = Operating profit / Total assets

13. Return on assets = Net Profit / Total Assets

14. Return on Equity = Net Profit / (Capital + Reserves and Surplus)

15. Cost of Deposits = IPD / Deposits

16. Cost of Borrowings = IPB / Borrowings

17. Cost of Funds = (IPD + IPB) / (Deposits + Borrowings)

18. Return on Advances = IEA / Advances

19. Return on Investments = IEI / Investments

20. Return on Advances adjusted to Cost of Funds = Return on Advances – Cost of Funds

21. Return on Investment adjusted to Cost of Funds = Return on Investments – Cost of Funds

On the basis of these parameters try to compile a comparative assessment as under:

1. All Commercial Banks (or the Banking system)
2. Public Sector Banks
3. Old Private Sector Banks
4. New Private Sector Banks
5. Foreign Banks

This will indicate the comparative performance of your bank in relation to each group and the banking system as a whole. But if one prepare the comparative statistics for the   bank for the last three years, it will also indicate the direction in which the bank is progressing.

 

 

             

Dr.R.SRINIVASAN is a Post graduate in commerce and Management. He received his doctoral degree from Alagappa University in 1997. He currently teaches financial management and Research Methodology Subjects in Post graduate and Research Department of Corporate Secretaryship at Bharathidasan Government College for Women (Autonomous), Pondicherry University, Puducherry. Before Joining BGCW, he was teaching in SNR College, Coimbatore, Sindhi college, Chennai& T.S.Narayanasamy College, Chennai for eight years. He was with the industry for a short term at Salzar Electronics Pvt. Ltd, Coimbatore. He has about 20 years of teaching experience and having research experience of 15 years. His interests are in Accounting and finance, Capital Market, Quantitative Methods. He underwent the Faculty Development Programme at Indian Institute of Management Ahmedabad during 2000-01. He has presented 20 papers in national and international conferences and has published twenty papers in the areas of Finance and Human resource Management in National Journals. Co-authored a book titled, ‘Investors Protection, published by Raj Publications, New Delhi He has delivered lectures in contemporary finance topics at Pondicherry University. He is involved in consultancy projects for Godrej Saralee, Chennai in the areas of Statistical Applications. He has supervised a number of research projects in the area of corporate finance and Human Resource Management. He is the Board of examiner in corporate Secretaryship and Management for the past two decades.
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Article Source:http://www.articlesbase.com/banking-articles/performance-measurement-of-banks-npa-analysis-credentials-of-parameters-1277414.html

Carrier Pigeons Helped Create The Worlds Most Famous Banking Fortune

by: Geoff Ficke

Whether in business, warfare or affairs of the heart knowledge, the more the better, is often the most crucial element in determining event outcomes. The ability to know what the competition for a business deal is strategizing is potentially game changing. A General upon learning details of a rivals battle plan gains immense advantages in plotting counter-strategy. Knowledge is often not quantifiable, but it is invaluable. 

One of the most famous and consequential uses of real time knowledge occurred in Europe in 1815. Early in the 19th century information obtainable through communication channels about distant events was painstakingly slow to arrive. Roads were rough, unfinished, really little more than cart paths. There was no wire transmission or speedy organized courier services for delivering messages over vast distances. Word of the outcome of a battle, treaty or an important political affair could takes weeks or months to arrive where the result was most keenly anticipated. 

The Battle of Waterloo is possibly the most famous military engagement in history. The battle site, the tiny, remote Belgian village of Waterloo, is synonymous today with one’s “final act”. Waterloo became Napoleon Bonaparte’s denouement. His inglorious defeat by the British forces, commanded by the Duke of Wellington, expedited his exile to the tiny island of Elba and the decline of France as a military power for almost a century. 

Prussian, Austrian and Russian armies had allied to fight with the British against Napoleon. All of these great armies, moving across vast swaths of Europe terrain needed extensive provisioning, arming and logistic support to maintain troops as they girded for the great battle. This was an incredibly expensive enterprise. Massive funding was required to support the campaign. 

The Rothschild banking family was already famous across most of Europe for providing a secure funding source for national governments. The Rothschild’s had established five branches of their enterprise. The largest, most important were based in Paris and London. The final Napoleonic war was largely funded by Nathan Rothschild of the family’s London branch. This house had provided large sums to both the British and the French. The Rothschild’s were famously indifferent to rulers and governments. Nathan Rothschild once famously remarked, “The man who controls the British money supply controls the British, and I control the British money supply”.

His goal was to profit no matter who was in power or won a war. 

Nathan Rothschild knew that early knowledge of the winner at Waterloo, details of the battle, the severity of the loser’s defeat would be invaluable in financially manipulating markets to profit from the result. The family had invested heavily over the decades in field agents that forwarded tips and messages, fast packet ships and trained carrier pigeons to speedily deliver notes. 

The arrival of the carrier pigeons in London with specific battle results from Waterloo provided Rothschild the information he needed to begin to plant rumors. Initially he spread the word that the British had lost. Investors began to adjust their bond and security positions in reaction to this negative news. Rothschild took opposite positions, and then, he strategically released the actual truthful news that Wellington had vanquished Napoleon. This enabled the family to profit on both sides of the trades. It is estimated that the Rothschild family extrapolated an increase in wealth of 20 times their pre-war capital. 

The foresight to train a winged air force of carrier pigeons proved fortuitous and extremely profitable for the banking house of Rothschild. The edge they enjoyed in receiving real-time information and spectacularly profiting from the knowledge, became legendary and only increased the perception that they were a family of financial Merlin’s. Their power and wealth has multiplied exponentially in the past 200 years and has been maintained to this very day. 

In modern business and finance, the ability to glean information about competitor’s plans, information that will affect asset valuations and marketing strategies is invaluable. Governments spend billions of dollars trying to steal state and commercial secrets. Private investigators are used every day to scope out the fidelity and affairs of married spouses. Information is power. 

Entrepreneur’s can learn an important lesson from this chronicle about the Rothschild’s use of carrier pigeons. If your project has true commercial value it must be protected. You must assume that there are people working at the same time on a similar opportunity. Time is not your friend. 

Whether you can uncover a competitor’s plan or an adversary learns your project’s details, the first owner of knowledge stands to maximize profit. Placing second in this process is a sure path to losing the crucial first to market product advantage. The Rothschild’s earned fabulous riches from simply learning the outcome of a battle before competitors. In order for entrepreneur’s to successfully profit from their efforts they must harvest every bit of relevant and available knowledge as quickly as possible. 

Knowledge is invaluable, but it must be secured and utilized with diligence and due haste.

Geoff Ficke has been a serial entrepreneur for almost 50 years. As a small boy, earning his spending money doing odd jobs in the neighborhood, he learned the value of selling himself, offering service and value for money.

After putting himself through the University of Kentucky (B.A. Broadcast Journalism, 1969) and serving in the United States Marine Corp, Mr. Ficke commenced a career in the cosmetic industry. After rising to National Sales Manager for Vidal Sassoon Hair Care at age 28, he then launched a number of ventures, including Rubigo Cosmetics, Parfums Pierre Wulff Paris, Le Bain Couture and Fashion Fragrance.

Geoff Ficke and his consulting firm, Duquesa Marketing, Inc. (www.duquesamarketing.com) has assisted businesses large and small, domestic and international, entrepreneurs, inventors and students in new product development, capital formation, licensing, marketing, sales and business plans and successful implementation of his customized strategies. He is a Senior Fellow at the Page Center for Entrepreneurial Studies, Business School, Miami University, Oxford, Ohio.

Article Source:http://www.articlesbase.com/banking-articles/carrier-pigeons-helped-create-the-worlds-most-famous-banking-fortune-1278451.html

ANALYSIS OF INDIAN FINANCIAL REFORMS WITH REFERENCE TO BANKING SECTOR

Analysis of Indian Financial Sector reveals that it is at present going through a phase of stable growth rate which is experiencing a upward swing. The rise can be maintained over a long period by keeping the inflation down. The financial sector in India has experienced a growth rate of 8.5% per annum. The rise in the growth rate suggests the growth of the economy. The financial policies and the monetary policies are able to sustain a stable growth rate. The reforms pertaining to the monetary policies and the macro economic policies over the last few years have influenced the Indian economy to the core. The major step towards opening up of the financial market further was the nullification of the regulations restricting the growth in the financial sector. To maintain such a growth for a long term the inflation has to come down further. The analysis of Indian financial sector shows the growth of the sector was the result of the individual development of the divisions under the sector.

Analysis of the Indian Capital market

• The ratio of the transaction was increased with the share ratio and deposit system
• The removal of the pliable but ill-used forward trading mechanism
• The introduction of InfoTech systems in the National Stock Exchange (NSE) in order to cater to the various investors in different locations
• Privatization of stock exchanges

Analysis of the Indian Venture Capital market

• The venture capital sector in India is one of the most active in the financial sector in spite of the hindrances by the external set up
• Presently in India there are around 34 national and 2 international SEBI registered venture capital funds

Analysis of the Indian Banking sector

• The banking system in India is the most extensive. The total asset value of the entire banking sector in India is nearly US$ 270 billion.
• The total deposit is nearly US$ 220 billion. Banking sector in India has been transformed completely.
• Presently the latest inclusions such as Internet banking and Core banking have made banking operations more users friendly and easy.

Analysis of the Indian Insurance sector

• With the opening of the market, foreign and private Indian players are keen to convert untapped market potential into opportunities by providing tailor-made products:
• The insurance market is filled up with new players which has led to the introduction of several innovative insurance based products, value add-ons, and services. Many foreign companies have also entered the arena such as Tokio Marine, Aviva, Allianz, Lombard General, AMP, New York Life, Standard Life, AIG, and Sun Life
• The competition among the companies has led to aggressive marketing, and distribution techniques
• The active part of the Insurance Regulatory and Development Authority (IRDA) as a regulatory body has provided to the development of the sector

Investment in India – Financial Sector & Reforms

Bank norms liberalized and banks given the freedom to decide levels of holding of individual items of inventories and receivables. Ceiling on term loans raised to Rs. 10,000 million for projects involving expansion/modernization of power generation capacities. Banks allowed setting their own interest rate on post-shipment export credit (in Rupees) for over 90 days. Deregulation of interest rates on loans over Rs. 200,000 against term deposits and on domestic deposits with maturity periods over two years. Banks freed to fix their own foreign exchange open position limit subject to RBI approval

Guidelines issued to banks to ensure qualitative improvement in their customer service. Loan system introduced for delivery of bank credit. Banks required to bifurcate the maximum permissible bank finance of Rs. 200 million and above into loan component of 40% (short term working capital loan) and cash credit component of 60%.

Impact of Financial Sector Reforms in India

Banks have been accorded greater discretion in sourcing and utilization of resources, albeit in an increasingly competitive environment. The outreach of the Indian banking system has increased in terms of expansion of branches/ATMs. In the post-reform period, assets/liabilities of banks have grown consistently at a high rate. The financial performance of banks also improved as reflected in their increased profitability. Net profit to assets ratio improved from 0.49 per cent in 2000-01 to 1.13 per cent in 2003-04. Although it subsequently declined to 0.88 per cent in 2005-06, it was still significantly higher than that in the early 1990s. Banks have been successful in weathering the impact of upturn in interest rate cycle through increasing diversification of their income. Though banks had to incur huge expenditures on up gradation of information technology, the restructuring of the workforce in public sector banks helped them cut down the staff cost and increase in business per employee. Another welcome development has been the sharp reduction in non-performing loans (NPLs). Both gross and net NPLs started to decline in absolute terms since 2002-03. Gross NPLs as percentage of gross advances, which were above 15 per cent in the early 1990s, are now less than 3 per cent. This distinct improvement in asset quality may be attributed to the improved recovery climate underpinned by strong macroeconomic performance as well as several institutional measures initiated by the Reserve Bank/Government such as debt recovery tribunals, Lok Adalats, scheme of corporate debt restructuring in 2001, the SARFAESI Act in 2002. Since 1995-96, the banking sector, on the whole, has been consistently maintaining CRAR well above the minimum stipulated norm. The overall CRAR for scheduled commercial banks increased from 8.7 per cent at end-March 1996 to 12.3 per cent at end-March 2006. The number of banks not complying with the minimum CRAR also declined from at end-March 1996 to just two by end-March 2006. Improved capital position stemmed largely from the improvement in profitability and rising of capital from the market, though in the initial stages the Government had to provide funds to recapitalize weak public sector banks. Even though public sector banks continue to dominate the Indian banking system, accounting for nearly three-fourths of total assets and income, the increasing competition in the banking system has led to a falling share of public sector banks, and increasing share of the new private sector banks, which were set up around mid-1990s. It is clear that we are at the beginning of this new phase in the Indian banking with competitive pressure, both domestic and external, catching up and the need for banks to continuously reassess and reposition themselves in their business plans.

To conclude, the financial system in India, through a measured, gradual, cautious, and steady process, has undergone substantial transformation. It has been transformed into a reasonably sophisticated, diverse and resilient system through well-sequenced and coordinated policy measures aimed at making the Indian financial sector more competitive, efficient, and stable. Concomitantly, effective monetary management has enabled price stability while ensuring availability of credit to support investment demand and growth in the economy. Finally, the multi-pronged approach towards managing capital account in conjunction with prudential and cautious approach to financial liberalization has ensured financial stability in contrast to the experience of many developing and emerging economies. This is despite the fact that we faced a large number of shocks, both global and domestic. Monetary policy and financial sector reforms in India had to be fine tuned to meet the challenges emanating from all these shocks. Viewed in this light, the success in maintaining price and financial stability is all the more creditworthy.

S.Saravanakumar,
Assistant Professor,
Excel Business School,
Namakkal District

Article Source:http://www.articlesbase.com/banking-articles/analysis-of-indian-financial-reforms-with-reference-to-banking-sector-1271895.html

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