CHANGING BUSINESS STRATEGIES of INDIAN COMMERCIAL BANKS IN THE POST REFORM ERA

Abstract

India s banking sector is sufficiently capitalised and well-regulated. The financial and newlineeconomic conditions in the country are far superior to any other country in the world. Credit, market newlineand liquidity risk studies suggest that Indian banks are generally resilient and have withstood the newlineglobal downturn well. Indian banking industry has recently witnessed the roll out of innovative newlinebanking models like payments and small finance banks. The central bank granted in-principle newlineapproval to 11 payments banks and 10 small finance banks in 2015-16. RBI s new measures may go a newlinelong way in helping the restructuring of the domestic banking industry. The Indian banking system newlineconsists of 26 public sector banks, 25 private sector banks, 43 foreign banks, 56 regional rural banks, newline1,589 urban cooperative banks and 93,550 rural cooperative banks, in addition to cooperative credit newlineinstitutions. Public-sector banks control nearly 80 percent of the market, thereby leaving newlinecomparatively much smaller shares for its private peers. Banks are also encouraging newline