That the Indian banking is virtually roaring is no longer a myth. This is evident from the fact that almost all banks in their recent financial statements have revealed a very strong growth without taking advantage of any income arising from the investment in government securities as has happened in the earlier years due to declining trend in interest rates and consequent impact on security prices. The statements also reveal that their interest income is growing in a robust manner and fee income is also showing a healthy trend.

Indian banks have kept a very low profile in sensitive sectors like capital and commodity markets. This has obviously helped Indian banks to remain sound and steady. However, their recent overtures with the real estate market which is also considered as one of the sensitive sector have not been viewed as being healthy by the Reserve Bank of India (RBI) and therefore these banks have been cautioned by the regulatory authority. This is expected to set a healthy trend in Indian Banking.

In fact, recent financial reforms in India have provided Indian banks to operate on the basis of operational flexibility and functional autonomy. Further, recent innovation in information technology that has been increasingly adopted by most of the banks has helped them to develop innovative packages for effective credit disbursements and monitoring the same along with effective cash management and risk management. It has helped them to reduce operation cost as well as to speed up services with least cost and risk. Finally, it has helped them to adopt core banking solutions extensively. This indeed has made banking faster and efficient as well as accessible to far flung areas without waiting and consequent delay in decision and action. This has also helped banks to extensively adopt inclusive strategy and thereby broaden the base and space for operation.

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