Earlier banks were conservative in their approach but the liberalization of the banking sector has resulted in an enhanced efficiency. With a growth in the Indian economy, especially in its services sector, the demand for banking services has grown strong. There was an expansion, greater competition and diversification of ownership of banks. Today, easier access to knowledge, increased and broad based use of technology and rapid introduction of innovative customized products to meet the customer demands are the key features of the changing banking scenario .The paper sheds light on the achievement of Indian banking services and at the same time highlights that there are many challenges ahead for the Indian Banking Services. It is important for the banking services to cope with these challenges in order to march ahead.
There
was a time when it was believed in that industrial revolution
was the only solution to social problems such as poverty
and unemployment. Now, however, the services sector promises
to fulfill the task. Services touch the lives of every person
everyday be it in the field of food services, communication,
leisure services or financial services, to name a few. Our
welfare and the welfare of our economy are now based on
services. Services lie at the very hub of economic activity
in any society. No wonder that the services sector will
be the biggest driver of new economic growth and profit
earner in the new millennium for the world in general and
India in particular. The services sector can best be characterized
by its diversity.
According
to Kotler (2003), "A service is an activity or benefit
that one party can offer to another which is essentially
intangible and does not result in the ownership of anything.
Its production may or may not be tied to a Physical Product". When
a customer buys a service in the service market, he buys
time, knowledge, skill or resources of someone else who
is the provider or supplier of the service (Pattnaik and
Chhatoi, 2006). The
services sector plays an important role in the development
of the country. Studies have shown that the employment elasticity
(to GDP Growth) in the services sector is higher than that
in both the agriculture and manufacturing sectors; therefore,
the growth of services sector helps in the generation of
employment opportunities in the country.
|
