Voyage of Indian Banking Sector: 1979-2007

Abstract

Observing through the voyage of India Banking Sector, it could be concluded that Indian banking system is operating under competitive state of affairs and earns revenues as if under monopolistic competition, despite not depending on traditional source of fund in the form of deposits as profitability, i.e., return on assets are increasing and approaching towards industry ratio. But still foreign banks functioning in India are on a higher plane with respect to its performance in comparison with other bank groups. Costs of deposits and return on advances of all scheduled commercial banks have declined in the post reform period. However, return on advances was approaching closer to industry average showing competition amongst the banks in making profit on the interest rate front.