Us Subprime Crisis - A Global Financial Shock: Its Impact on Indian Economy and Banking Sector in Particular

The financial downturn in USA (2007–08), in comparison with the crisis of 1930s, has thrown open many critical issues related to financial management practices in banking sector and recurrence of real estate price bubble from time to time. This article looks into the cause of financial crisis and its impact on some major economies of the world against the background of financial crisis in the USA. The research has been carried out on basically on two fronts. One is the Impact of the crisis on the Indian economy and, the other is to study the performance of the banking sector in particular. The objective was to assess the impact of Global Banking Crisis on the Indian banking sector, at a time when many major multinational investment banks across the globe struggled for existence or tumbled like a pack of cards. Secondary Database sources like CMIE Database, National Stock Exchange and Bulletin of Finance Ministry, Magazines and Online Journals are used for collecting data for the research.The study reveals that the Indian industry was only indirectly affected by the global recession.