Indian banking industry, the backbone of the country’s economy, has always played a key role in
development the economic catastrophe from reaching terrible volume in the country. It has achieved
enormous appreciation for its strength, particularly in the wake of the worldwide economic disasters,
which pressed its worldwide counterparts to the edge of fall down. If we compare the business of top three
banks in total assets and in terms of return on assets, the Indian banking system is among the healthier
performers in the world. This sector is tremendously competitive and recorded as growing in the right
trend. Indian banking industry has increased its total assets more than five times between March 2000 and
March 2010, i.e., US$250 billion to more than US$1.3 trillion. This industry recorded CAGR growth of
18 percent as compared to country’s average GDP growth of 7.2 percent during the same period. The
commercial banking assets to GDP ratio has increased to nearly 100 percent while the ratio of bank’s
business to GDP has recorded nearly twofold, from 68 percent to 135 percent. The overall development
has been lucrative with enhancement in banking industry efficiency and productivity. It should be
underlined here is financial turmoil which hit the western economies in 2008 and the distress effect
widened to the majority of the other countries but Indian banking system survived with the distress and
showed the stable performance. Indian banks have remained flexible even throughout the height of the
sub-prime catastrophe and the subsequent financial turmoil.
The Indian banking industry is measured as a flourishing and the secure in the banking world. The
country’s economy growth rate by over 9 percent since last several years and that has made it regarded as
the next economic power in the world. Our banking industry is a mixture of public, private and foreign
ownerships. The major dominance of commercial banks can be easily found in Indian banking, although
the co-operative and regional rural banks have little business segment.