Indian Banking-Scaling New Heights in Emerging New Competition

Abstract

Indian banking industry has transformed in recent years due to the
globalization market which has resulted in fierce competition. This new
competitive environment has resulted in new challenges for the Indian
banks especially for public sector banks to retain their share. The
present paper is mainly concerned with the analysis of factors that
influence the performance of banks. The paper examined that structure
of Indian banking in terms of share of individual banks in total assets
of all scheduled commercial banks and further examined the factors
responsible for the changes. The paper concludes that the public sector
banks have dominant position in their share in total assets of all
scheduled commercial banks. Among all the factors under study,
profitability have recorded deterioration in all the bank groups during
the study period as public sector banks witnessed the least profitability
along with the highest costs and decreasing spread even succeeded to
bring down their non-performing assets and intermediation cost