“Emerging Issues of Banking Industry in India –A Reflection after Globalization”

Abstract

The banking sector is the lifeblood for the economic growth of a country. Banking industry plays a crucial role to initiate and support economy development of every country. It is especially helpful in economic growth of a developing country, like India. A country can determine its economic performance through banking and financial system. Indias banking is operating from a long period but it has shown an adverse effect on the capital adequacy, assets quality and growth of Indian banks. But in changing scenario, after globalization, Indian banking industry is achieving new heights. There is a great revolution in operating activities of Indian banks due to the use of technology, merger and acquisition and digital banking. But with the changing dynamic times, this Indian banking industry has to face various issues and scams. This changing phase of banking after globalization has brought various risks to stakeholders. Now in this changing dynamic era risk management, financial inclusions, employee retention, non-performing assets, better use of technology has become challenges for Indian banking industry.

This paper has made an attempt to recognize emerging issues of Indian banking industry after globalization. This paper has divided into three parts to focus over the emerging issues of Indian banking industry. First part begins with the concise introduction of Indian banking and ends with brief explanation of history, development and concept of banking and the second part analyzes the review of past literature on the theme. The third part gives the critical reflection on contemporaneous issues and challenges, which are faced by Indian banks after globalization. The fourth and last part of paper shows the conclusion with discussing the suggestions to get rid smoothly from these issues, so that banking sector can contribute in sustainable economic growth of Indian banking.