In current scenario, banking is the international issue reform in the financial sector covering banking, financial market and trade. It has been supporting to strengthen the fundamentals of Indian economy. Performance of banking sector has impact across the length and breadth of the economy. In order to control over the banking sector, the government of India had nationalized 14 major public sector banks with deposits exceeding Rs. 500 million in 1969. This had raised the number of scheduled bank branches under government to 84% from 31%. But the performance of public sector bank was increasingly becoming an area of concern. The continuous rise of Non-performing assets (NPAs) of banks posed a significant threat to the stability of the financial system. Hence banking reforms were made an integral part of the liberalization process. The financial sector reforms started in 1991 had provided the necessary platform for banking sector to operate on the basis of operational flexibility and functional autonomy that will lead to enhancement in productivity, efficiency and profitability. In this paper, there is an attempt to provide a brief description on performance of banking sector and impact of banking sector reforms in India
Reform process, Reform measures, Impact of banking sector reforms, Capital adequacy norms
