COVER STORY

Indian Banking Industry : Sustaining the Growth Momentum

-- Amit Singh Sisodiya,
Y Bala Bharathi and Imrana Moghal

The banking sector in India has once again come out with another fiscal of robust performances. This is commendable given the fact that the banking environment has suddenly become quite challenging after the US subprime crisis that surfaced last year and which has resulted in an unprecedented global liquidity crunch. The fiscal also confirmed the end of the era of benign interest rates as the country's apex bank embarked on a belt-tightening spree.

© 2008 IUP . All Rights Reserved

BY INVITATION

Basel II: How Geared Are Indian Banks?

-- Rajesh Mokashi

Banks which are expecting their CARs to decline as a result of Basel II will have to shore up their capital requirements in the immediate future.

© 2008 IUP . All Rights Reserved

BY INVITATION

Globalization : Impact on Indian Banking

-- Latika Tandon

The Indian banking sector is inextricably linked to its global counterparts. This linkage is now in two ways, with India both contributing to and benefitting from its global alliances.

© 2008 IUP . All Rights Reserved

BY INVITATION

Financial Inclusion : The Role of Indian Banks

-- Ashish Srivastava

Banks in India have now started appreciating the business potential inherent in financial inclusion, their corporate social responsibility, and also the need for better involvement.

© 2008 IUP . All Rights Reserved

BY INVITATION

Rural Banking : Challenges Ahead

-- AK Bandyopadhyay

The future of rural banking would depend largely on how well the current trends and issues are addressed and a confluence of both borrowers and lenders is achieved.

© 2008 IUP . All Rights Reserved

BY INVITATION

Islamic Banking : Challenges and Opportunities Ahead

-- Martin Cihak, Heiko Hesse,
Andy Jobst and Juan Sole

The impact of the current credit crisis on Islamic banking appears to be limited so far. While many challenges still lie ahead, measures aimed at fostering the soundness and stability of the Islamic banking industry will ensure its steady growth.

© 2008 IUP . All Rights Reserved

PERSPECTIVE

Wall Street Crisis : Lessons for India

-- GRK Murty

Way back in 2000, the Per Jacobsson Foundation organized a panel discussion on "Strengthening the Resilience of Financial Systems" at the Lucerene Culture and Convention Center in Switzerland, in which Arminio Fraga, Governor of the Central Bank of Brazil, made a set of very interesting observations. First and foremost is: "If one looks back at the history of international debt crisis, certain regularities emerge.

©2008 IUP . All Rights Reserved

APOLITICAL

Dr. YV Reddy : Governor of "Courage, Independence and Foresight"

-- grk

In the question-answer session that followed the delivery of the first Per Jacobsson lecture held in 1994 at Barbican Hall, London, Baron Alexandre Lamfalussy, President of the European Monetary Institute, answering the question-"What indicators should central banks watch in order to take preventive measures against inflation, bearing in mind that consumer price indices, or GDP deflators, are lagging indicators?"-said: "Although I have doubts about the reliability of any single M, I still think that money supply does matter.

©2008 IUP . All Rights Reserved

EXPERT'S VIEW

Consolidation in Indian Banks : Survival of the Fittest

-- Rupa Rege Nitsure

While size does matter in banking business, it must be remembered that size does not necessarily guarantee success.

© 2008 IUP . All Rights Reserved

EXPERT'S VIEW

Banking Sector in India : 2009 and Beyond

-- Abizer Diwanji and Divya Arora

The Indian banking sector, in order to sustain its growth, needs to tap the untapped segments of the population both in the rural and urban markets.

© 2008 IUP . All Rights Reserved

EXPERT'S VIEW

Rising Interest Rates : Impact on Indian Banking Sector

-- Hemant Batra

As the rising deposit costs and tightening monetary levers push Indian banks to hike rates, growth might take a backseat for now.

© 2008 IUP . All Rights Reserved

EXPERT'S VIEW

Indian Banking : Emerging Issues and Future Trends

-- BNV Parthasarathi

The entry of foreign banks and the possible acquisition of Indian private banks by foreign banks after March 2009 will pose a major threat to the existing private banks in India.

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EXPERT'S VIEW

Agricultural Debt Waiver and Debt Relief Scheme : What It Means for Banks

-- Kalyan Chakravarthy

Since the government has not as yet released the subsidy for waiver of agricultural loans and one-time settlement of loans, banks are facing pressure on their net interest margins and a liquidity crunch.

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EXPERT'S VIEW

Indian Banking : Truly Global?

-- N R Parasuraman

The banking industry in the country needs to have both regulatory permission and administrative strength to involve themselves in overseas mature financial markets.

© 2008 IUP . All Rights Reserved

EXPERT'S VIEW

Islamic Banking : Opportunities and Challenges

-- Hussain G Rammal

Islamic banks are facing challenges to sustain the growth they have experienced so far. In order to remain competitive, Islamic banks have to get back to their basic goal of providing Shariah-compliant financial alternatives to the Muslim population.

© 2008 IUP . All Rights Reserved

EXPERT'S VIEW

Liberalization and Regulation of the Banking Industry : Back to the Future

-- Sumon Kumar Bhaumik

The default in the banking industry has been freedom from regulation, with regulators trying to make amends in the wake of crises.

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EXPERT'S VIEW

Rising Interest Rates : The Coming Challenges

-- Renu Challu

The inflation was more a supply side one, contagion of the global phenomenon, and hence fiscal steps had limited effect.

© 2008 IUP . All Rights Reserved

EXPERT'S VIEW

Financial Inclusion : Next Big Thing for Indian Banks

-- Somak Ghosh and Neha Kapoor Bharadwaj

Commercial banks that historically tended to stay away from microfinance have started to investigate the market for themselves, discovering sustainable profits and growth opportunities.

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EXPERT'S VIEW

Financial Literacy and Counseling Centers : An Imperative for the Development of Financial Markets

-- T Shiva Kumar

In countries with a diverse social and economic profile like India, financial literacy would guide people who have meager resources, operate on the fringe, and are vulnerable to continual downward financial pressures.

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EXPERT'S VIEW

Liquidity Crunch : Growth Challenges

-- G Ramachandran

Hard landing instances in many economies could simply lead to financial and economic distresses and this cannot be resolved fully with liquidity injections alone by central bankers as lenders of last resort.

© 2008 IUP . All Rights Reserved

EXPERT'S VIEW

Mobile Banking : Present Status and Future Perspectives

-- Prof. (Dr.) S L Gupta and Arun Mittal

The future of mobile banks looks bright due to the increasing penetration of mobile phones, the continuous increase in customers' awareness, and the effectiveness of banking and regulatory system. However, challenges such as security, reliability and consistency in services to meet the customers' expectations remain.

© 2008 IUP . All Rights Reserved

EXPERT'S VIEW

Rising Interest Rates : Impact on Bank Asset Quality

-- Tarun Bhatia

The rising interest rate scenario has added pressure on the retail asset quality of the banking sector.

© 2008 IUP . All Rights Reserved