CONTRIBUTION OF COMMERCIAL BANKS TOWARDS REGIONAL ECONOMC SHIFT VIS A vis GROWTH AND DEVELOPMENT OF THE STATE

Abstract

ABSTRACT newlineThe economic development and liberalization in the financial sector of India have led to a newlinerenovation of the Indian banking sector over the past three to four decades. Today, Indian newlineBanking sector is at the turning point of an invisible revolution. This sector has newlineundergone considerable developments in the recent past. Most of the banks provide newlinevarious services such as Mobile banking, SMS banking, Net banking as well as ATMs to newlinetheir clients. Banks in India have made quality development over the last few years, with newlinenumerous factors such as profitability, annual credit growth as well as the trend in gross newlinenon-performing assets. newlineBeing the barometer of the Indian economy, the banking sector is reflective of the macroeconomic newlinevariables. While the Indian economy is still to catch the strength and develop, newlinethe Indian banking sector continues to deal with development and improvement in asset newlinequality, risk management practices and capital adequacy. The commercial banks can play newlinean active and important role in promoting capital formation, in controlling speculation in newlinemaintaining a balance between requirements and availabilities and in direct physical newlineresources into desired channels and thus results in the economic development of a newlinecountry. Only if the banking system is effective and disciplined; it can bring about a newlinequick growth in the various sectors of the economy. It could be affirmative to say that the newlineindex for measuring any growing economic advancement is the extent to which its newlineindustries, both the large and small scale, have been growing over time. In fact, none of newlinethe industries can really grow without the required financial assistance from various newlinefinancial institutions. newlineCapital formation is also one of the most important factors in the process of newlineEconomic Development. The volume of capital formation is determined by the volume of newlinereal savings in the country which depend on the ability and opportunity of the public.