Commercial development and banking sector management in India
Author(s): Pooja Pandey, Bulbul Ali and Abha Mishra
The main objective of reforms in India was to enhance the efficiency and performance of banks so that their economic standing also improves. In the early years of 1990’s when the Government of India, opened the market through LPG, many private and foreign banks rushed to set up their business in India, as there was a gap (Gap of service given by public banks and services expected). In order to pull up the socks and prepare our banking sector for this change, the Indian government started diluting its equity in Public /Private Sector Banks from early 1990s in a phased manner. In recent years the economist and banking sector specialist witnessed that though the public bank’s infrastructure and size of business is too large and have enough experience, but they are facing the problems and difficulties from the functioning of private banks.
India is the largest country having many and varied financial institutions both public and private banks, who are controlled and governed by Reserve Bank of India, and Ministry of Finance.