Indian Banking System

The last few years have seen Indian economy jump from a manufacturing sector to a novel service sector. Because of this leap in the economy, the banking has also undergone a huge change. A larger portion of the consumers at the banks implies for larger demand of the financial products and customised services are now quickly becoming the norm rather than a competitive edge. In the coming years, the retail banking is expected to grow as high as 30% and the major banking players are focussing more on the retail sector and are realising the potential of this banking sector. Simultaneously, Indian banking sector at large is witnessing a change in the regulatory framework as well as securitization with stringent NPA norms. Since 1992 when the economic liberalisation began, the banking sector of India has seen a growth like never before, along with a major improvement in the quality of its assets and efficiency. The banks which once used to be plain and simple, have now transformed themselves as universal banks. The ‘anytime, anywhere' norm (ATMs, mobile banking and internet banking) are the new normal. In the year 2011-2012, the non cash payments make up to 91% and 48% of the total transactions in-terms of value and volume respectively. In non-cash payments, share of payment made through cheques has come down to 9% from the earlier 85% in value, and to 52% from earlier 83% in volume. (Source: ) Apart from these, banks have also taken further measures in order to improve upon their functioning. Evidently, there are now 20 banks in UK-based Brand, Finance's annual international ranking. The growth of the banks is not only limited to the developed urban and metropolitan areas, but is also expanding to the rural front. A country where about half of the population is still not in line with the banking services, banks have acted not only as financial providers but much more. For an instance, the Aryavart Gramin Bank, a regional bank sponsored by Bank of India, in collaboration with Tata BP solar is to finance "solar home lighting systems" in homes of villages in Uttar Pradesh. India's banking system was one of the few large systems in banking which remained unaffected by the global financial crisis back in 2008. However, there is much which remains to be done in order to make it a world class banking facility and sector. The banking sector is hugely dependent on the economic environment of the country. This sector can be challenging, demanding and sometimes risky. With Ramco's ADF Solution, be prepared to taste success. The business intelligence analytics laced with the ground breaking business analytics software are all set to deliver an innovative and swift enterprise solutions and services to aid you banking and financial processes. The financial performance analysis of banks let you know of the micro and macroeconomic changes as well as the consecutive risks it might bring. They comply with the regulatory norms and successfully meet the diverse demands of clients and improvise profit.