Prior to the initiation of reforms in 1991, Indian banking industry suffered from lack of competition, low capital base, inefficiency, and high intermediation costs.
Banking sector reforms of the last two decades have placed greater emphasis on structural measures and improvement in the standards of disclosure and levels of transparency in order to align the Indian standards with international best practices. Reforms have brought about considerable improvements as reflected in various parameters relating to capital adequacy, asset quality, profitability, and operational efficiency. |