Banking in India can be termed as the kingpin of the chariot of economic progress. It acts as a major transformation during the past three decades. Today we are having developed banking system with different classes of Banks, foreign banks, private banks, public sector banks – both old and new generation, regional rural banks and cooperative banks with RBI as the fountain head of the system. While bank lending has been a significant driver of GDP growth and employment, periodic instances of the “failure” of some weak banks have often threatened the stability of the system. Structural weaknesses such as a fragmented industry structure, restrictions on capital availability and deployment, lack of institutional support infrastructure, restrictive labour laws, weak corporate governance and ineffective regulations beyond scheduled commercial banks (SCBs), unless addressed, could seriously weaken the health of the sector. The present paper makes an attempt to highlight major challenges related to marketing, finance, human resources and strategic sphere in the present scenario. Further, efforts have been made to layout certain suggestions to make Indian banking effective in the global competitive era.
Capacity Building, Retention Management, Non-performing Assets, Risk Management, Accounting Standards
