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With buoyancy in the overall economy, led by robust corporate performances, the banking sector reported sterling performances. A host of positives characterized the banking sector in the country during the fiscal 2006-07. Against this backdrop, The Analyst's special issue on "Indian Banking 2006-07" offers a powerful perspective on various aspects of banks' performances and more.
As India celebrates its 60th independence anniversary and an amazing ascendance as one of the fastest growing economies in the world (second only to China), one sector which has played a vital role in propping up its economy is undoubtedly the banking sector. The banking sector's performance is seen as the replica of economic activities of the nation as a healthy banking system acts as the bedrock of solid economic and industrial growth of a nation. The Asian crisis of 1997 and the recent events like the US subprime crisis and growing concerns over carry trade have once again underlined the significance of a strong and robust financial sector for the smooth and efficient allocation of resources.
During the past six decades, since independence, the banking sector has witnessed significant changes and has surely come a long way from the days of nationalization during the early 1970s to the advent of liberalization, globalization and privatization, in the post-1991 era. The flurry of reforms witnessed over the last one-and-a-half decade has brought about significant changes in the banking arena in the country with technology being a major facilitator of this transformation. ATMs, Internet banking, credit cards, and now mobile banking have helped revolutionize the banking landscape in the country. Leveraging on their new-found tech-savvy and increased thrust on product/service innovation, the banks in the country witnessed a phenomenal growth in the last few years as the economic growth moved into top gear to be amongst the best in the world (India's GDP grew in excess of 8% consistently since 2003-04 onwards with a growth of 9.0% and 9.2% in 2005-06 and 2006-07, respectively). |
