Performance of Indian banks on the causes of global economic crisis: A case study on SBI group

The global recession has put an impact on Indian Banking industry also. India has thrown open it's financial service sector under WTO agreement to the world. India is witnessing and in future will witness entry of world-class banks and if our domestic banking sector has to compete with those banks it should be empowered with all abilities of competing successfully. The present paper examined all causes of crisis and it also examined the status of Indian Banking on the various causes like a) risk management, b) concentration risk and c) regulations etc. The study found out that there is good and ever improving performance by the banks under study. There are sufficient and significant improvements on the parameters of capital adequacy, asset quality, risk management etc. However an impediment in the way of perfect performance by SBI Group have been the frequent liquidity crisis and high interest rate risk. As far as General Banking scenario is concerned in India. RBI has put in place a robust regulatory framework under which Indian Banks operate. That has been the reason of low intensity impact to Indian banks of the crisis. So we can say that RBI through its regulatory framework has developed an inbuilt system of providing market participants an incentive to minimize the risk.