- Subject index
India's Financial Sector deals with the reform measures undertaken in the financial sector and their impact. The impact is assessed in terms of growth in activities, profitability, financial stability, and financial inclusion among intermediaries such as banks, NBFCs and mutual funds, as well as in the financial markets. This book adds to the existing literature on the subject by offering an analysis of the impact that embraces not only the increased activities in the sector but also the issue of financial stability and financial inclusion.
The discussion is divided in three parts. The first part deals with financial intermediaries, the second explores the primary and secondary markets, and the third focuses on the internationalization of the Indian financial market. Further topicality is provided to the discourse ...
Chapter 1: The Banking Sector
The Banking Sector
Commercial banking sector constitutes essentially the circulation system which is vital for economic prosperity. Thus, any discussion of the financial sector cannot ignore the role of commercial banks. It is because of this fact that the financial sector reforms started with the reforms in the banking sector. The present chapter, therefore, makes a survey of the major aspects of reform in this area against a brief background of the pre-reform scenario and evaluates the broad achievements.
The State of Banking Sector during the Early 1990s
It is true that the government had helped create and develop uniformity in the operational structure of the banks through the enactment of the Banking Regulation Act as back as in 1948. It is also true that ...