A Detail Study On Banking Industry

Banking industry is considered as a backbone of any country. Financial services provided by the banking institutions affects money, capital market and real sectors in a developing economy like India. It is a sector with strategic importance for any country as it contributes to the economy GDP, as well as confers social benefits to the society. The role of financial services are undergoing a phenomenal change today as it shifted from increasing sales to increasing customer satisfaction by providing qualitative financial services due to competitive environment. The necessity of banking industry is urgent, particularly in the rural hinterland, where the vast majority of the population of developing countries resides, but these areas continue to remain excluded from formal banking facilities. Despite various attempts made by the government, policy makers and also credit institutions, most of the financial inclusion studies reveal that vast majority of the population remain outside the purview of the formal banking system.