Indian banking and financial services: Challenges and future prospects

The major changes in the Banking and financial services industry is playing positive role in social welfare and economic development in India. Indian financial services sector is in for exciting times, many changes are being proposed and if these get implemented, the sector is in for immense churn. Banking is still considered a popular business segment in India, even many risks and overwhelming regulation. In India only banks can offer savings bank deposits, which work out cheaper than other sources of finance. Over the last decade, Indian banks have enjoyed bumper returns as total industry assets grew from $290 billion in 2001 to over $1,600 billion in 2011. Indian banks did better than their emerging Asia counterparts. This paper provides a strategic perspective on the opportunities and challenges introduced by the profound changes that the Indian financial industry is experiencing. This paper tries to pull together various conceptual developments that would suggest a framework to improve the Banking and Financial services.