The Indian banking system continued to battle falling asset quality issues and the need to maintain capital adequacy in the light of piling bad loans. Bargaining power of customers For good creditworthy borrowers bargaining power is high due to the availability of large number of banks. Hence, the profitability of the banks could come under pressure going forward as the accounts are referred to IBC.
The central bank will continue to monitor liquidity data and inflation numbers to decide on the next course of action in their monetary policy. Poor earnings growth by companies, slow pace of investments, risk aversion of banks due to rising bad loans, and availability of alternative funding sources for corporates pulled down credit growth during the year.
The unemployment rate has dropped to lowest in seventeen years and now stands at 4.
The gross domestic product GDP grew by 7. In FY17, the private sector banks continued to perform better than the public sector banks. Additionally, the RBI has approved for small finance banks and payment banks which will further increase competition in the industry.
Depositors may invest elsewhere if interest rates fall. The banking sector continued to report high slippages on account of farm loan waivers and default in their corporate loan portfolio. Bargaining power of suppliers High during periods of tight liquidity.
Given the increasing inflation, it is highly unlikely that the RBI reduces interest rates from hereon.
Federal Reserve hiked interest rates thrice in and the same now stands in a range of 1. As the corporate earnings recover in FY18, capacity utilization levels would inch higher and the private capital expenditure cycle could pick up going ahead.
Thus, higher provisioning and write-offs stifled banks advances growth. This could lead to a spurt in the corporate lending by the banks. The year gone by signified the beginning of the end of the easy money era.
The Fed has forecasted another three rate hikes in and two hikes in The asset quality review initiated by the central bank resulted in an increased recognition of bad loans. Although banks have reduced base rates but not to the same extent. Credit growth at 4.
As at the end of March, The crude prices over the year arrested its slide and saw some stability but oversupply issues remained an anchor on the global oil prices. While, that of private sector banks stood at 5.
For the full transmission of rates, the RBI has asked banks to follow the marginal cost of funds while setting the base rate. Public sector banks witnessed most of the deterioration in the asset quality as the gross NPA increased to The new RBI directive states that once a default has occurred, the bank will have days within which it should come up with a resolution plan.
The ownership in the banking sector remained predominantly in the public sector despite a gradual decline in their share. Trade unions in public sector banks can be anti reforms and orchestrate strikes. The margins reduced to 2. The IMF expects the global economy to grow by 3.
The net interest margin NIM witnessed decline during the year due to loss of interest from standard assets slipping into NPAs. Barriers to entry Licensing requirement, investment in technology and branch network, capital and regulatory requirements.
The rate hike is on account of an improving economy and labour market in the US. The improved prospects of global economic growth will be positive for the banking sector. The macro situation in India has deteriorated slightly on account of a spurt in the oil prices, a higher inflation then the expectation and more importantly fiscal slippages on account of lower than anticipated GST revenues.Research Article / Survey Paper / Case Study Available online at: fresh-air-purifiers.com Foreign Direct Investment in Indian Banking Sector: A Study Malla Reddy.
M Lecturer in Commerce To present the Foreign Direct Investment inflows in Banking Sector. Research methodology. International Journal of Advance Research in Computer Science and Management Studies Research Article / Survey Paper / Case Study Available online at: fresh-air-purifiers.com Technological Innovations in Indian Banking Sector: Changed face of Banking Seema Malik The research paper focuses on how the technology has transformed the face of banking.
Research Paper Commerce A Study on Customer Relationship Management Practices in Banking Sector (with Special Reference to Salem District Uploaded by Ashish Tagade.
Full-Text Paper (PDF): Impact of information technology on Indian banking services. Read this essay on Technology and Indian Banking Sector. Come browse our large digital warehouse of free sample essays. Get the knowledge you need in order to pass your classes and more.
Only at fresh-air-purifiers.com". INDIAN BANKING SECTOR AT A GLANCE Prof. Minakshi Dattatraya Bhosale Prof.
Minakshi Dattatraya Bhosale HOD, Faculty of MCA, Yashoda Technical Campus Satara, Maharashtra, India This research paper focused on growth of Indian banking Industry. It mainly focused on Private and Public banks in India.
Key Words: Indian banking, Satara district.Download